June 18, 2024

South West News

South West News from Gloucestershire to Cornwall

How Equity Release Could Help Homeowners in 2023/2024

Equity release has, for many years, been a powerful and popular way for homeowners to attain a little bit of financial flexibility – especially as they approach retirement. It will allow you to ‘access’ the value tied up in your home so that you can enjoy the money immediately.

So, what might you put the money raised through equity release towards?

Supplementing Retirement Income

The most obvious benefit of equity release is that it will bolster the amount of money you have available for day-to-day spending, and generally provide you with a more luxurious and comfortable standard of living. It’s worth researching your options here, as this form of finance isn’t right for everyone. Use an equity release calculator, to determine how much you can get, how much you need, and how you might otherwise raise the money.

Home Improvements and Renovations

It might be that you have specific modifications for your home planned. You might not wish to wait before putting your plans into motion; after all, you’re only going to be able to enjoy your home for a limited time. But you can start your renovations immediately if you’re willing to borrow – and equity release is a form of borrowing.

It might be that your plans for renovation will improve the value of your property in the long-term, in a way that justifies the cost of equity release.

Debt Consolidation

If you’re currently burdened by high-interest debt, then you might seek to consolidate many different loans into one through equity release. For example, if you owe money on two or three credit cards, and a payday loan provider, then you might take out money through equity release in order to pay off all the debtors. This will reduce your monthly outgoings – and simplify your financial life, too.

Funding Long-Term Care

In some cases, equity release can be used to ensure that the homeowner and their family enjoy a good standard of living, even if they have particular needs when it comes to care and support.

Given that the population of the UK is increasing, it’s fair to assume that more and more families are going to find themselves faced with this challenge with every passing year. Giving up work to act as a full-time carer for one’s loved ones is a choice that many are making – but not everyone can afford to make this choice.

The money made available through equity release might make a viable way to square this circle. It might allow for the provision of full-time professional care, or it might allow close friends and family the financial security they need to spend more time caring for their elderly relative.