Equity release schemes are a special type of lifetime mortgage for the over 55’s. They are designed to help you release equity in your home and turn it into tax free cash that you can spend as you wish. This money can then assist your retirement provision and make life more fruitful and enjoyable.
Equity release offers sanctuary at home
Unlike the other way to achieve the same goal, namely, selling your house, equity release schemes allow you to release money from the property without having to move out or sell it. Equity release can therefore alleviate you from the stress and upheaval of having to move house during your retirement. Afterall this should be the most relaxing time of your life! Additionally, with lifetime mortgage schemes you retain 100% of the value of the property, which for many provides much peace of mind.
However, the decision to take a release of equity should not be taken lightly. There are important considerations to make, such as the effect this could have on your children’s inheritance or even the stigma of having a mortgage in retirement. Afterall, pensioner mortgages are not that common, but are increasingly becoming so, now the baby boomer generation are attaining retirement age. This age group have been brought up on a sea of manageable debt and have no issues carrying that forward into retirement. This is one reason why the interest only lifetime mortgage has become ever so popular. (more...)