Like any financial decision, choosing to release equity will mean that you are bound to be filled with questions. Since there are so many different options and everyone has their own individual needs, it’s important to gain a complete understanding of equity release and all of the possibilities available.
By choosing an equity release plan, you can free up some much needed cash against the value of your home. Now, there are various clauses, prerequisites and restrictions depending on the type of plan you choose. Some don’t charge you any interest until you have to leave your home and relocate to a long-term care facility or in the event of your death. Others allow you to make monthly payments in order to cover the overall interest and avoid having it accumulate.
For those who are struggling financially and their pension pot does not suffice, an equity release can be just what you need to cover your living expenses all the way throughout your retirement. Alternatively, if you wish to make some kind of a financial investment, you can access the cash you need through an equity release plan and then use the money to invest as you please. Many homeowners choose to purchase a second property and either use it as a holiday home or rent it out in order to earn an additional income. If you wish to relocate and make your second property your primary home, you can then sell your primary home to cover the equity release amount and live out your golden years in the home of your dreams!
An equity release plan makes financial independence a possibility for everyone. Even though you are retired and no longer earning the same salary you had grown accustomed to, there’s no reason you cannot enjoy your life. By accessing the money you need in this way, you won’t need to dig yourself into debt by taking out another credit card, loan or going through the embarrassment of asking your family for financial help. Credit cards and loans might sound simple in the short-term but, over time, they can end up costing you so much more due to interest rates.
An equity release plan is also safer than investing in the stock market. The stock market is known to fluctuate and, while you might experience some wonderful profits today, tomorrow could quite easily be a very different story. Use the money you have and invest it in something sound and secure like property in order to ensure a brighter future for yourself and your loved ones.