Retirement can be challenging if you haven’t taken the time to invest your money. However, your home could provide the solution you may have been looking for. An equitable release loan could make your retirement much easier after many years of labour.
With Age Partnership equity release fees at an all-time low, the time to include your equity release into your retirement couldn’t be better. ConclusionLet’s consider how you could benefit from making equity release a part of your retirement.
Is It Wise to Release Equity?
Yes, it is wise to release equity if you want to improve your life during retirement.
According to equity release expert, Aaron Page, you can cover bare costs and provide for yourself without additional financial assistance.
How Can Equity Release Boost Income in Retirement?
Equity release can boost your income during retirement by allowing you to use the money to pay for medical needs, home improvements and cost of living.
Whether you take the money as a lump sum or a monthly instalment, you can use it as you wish.
What Are the Pros and Cons of Equity Release?
The pros and cons of equity release are simple to understand.
They are guidelines for equity release and give you a clear outlook on what to expect.
Let’s take a look at the pros and cons of equity release:
- Pros included in equity release are that you can remain in your house while you release equity.
You can use the money for anything you want.
- Cons included in equity release is that you do not get the same value for your home as you would if you sold it on the open market, you will get charged for early repayments, and the inheritance value will decrease.
What’s the Catch With Equity Release?
The catch with equity release is that the plans are for a lifetime and can be as high as 25% more than the amount you initially borrowed.
You won’t be able to use your property as collateral for any other loans until you have paid back the equity.
This could be especially difficult when changing providers to get better equity release deals.
Could I Sell My House With An Equity Release?
Yes, you can sell your home when you have released equity.
You can use the money from the sale to pay back the remaining balance of your equity release.
There are terms and conditions because equity release is a lifetime plan, but it could be harder to resell your home on the open market.
What Are the Equity Release Rates?
The equity release rates are set between 3% – 5%.
The rates may be lower at their current percentages but are still higher than if you took out any other standard mortgage.
What Factors Affect the Cost of Equity Release?
The current interest on your loan affects equity release the most.
Is Now the Best Time to Get an Equity Release?
Now is a great time to release equity because the interest rates are lower than ever.
As long as you meet the lender’s criteria and you are over 55, you can apply for an equity release mortgage at the current cost of the interest rates.
An equity release will be great for your retirement plan because you will be securing yourself in the long run.
You will have the opportunity to work on your credit and your home before you retire and stand a better chance of getting a good deal in the future.
Discuss your ideas and your retirement with a professional broker to make sure that you fit the criteria when the time comes for you to release equity.