An increasing number of homeowners are turning to lifetime mortgages or home reversion plans to help fund their retirement. Both are forms of equity release that allow the homeowner to stay in their home for life.
Equity release is used in many different ways to bring a range of enjoyable benefits to life in retirement: dream purchases, home improvements, helping family or friends are just a few examples. But another, exceptionally popular way in which equity release is being used is to pay off a mortgage or consolidate existing debts. By doing this, homeowners are left with more disposable income, which brings many benefits. So what are those benefits? Here are just a few examples:
Lifting the Pressure
Freeing yourself from financial burden; the feeling of knowing you have enough money to pay your way through a rainy day. What better than financial peace of mind in retirement?
Spoiling the family
There is nothing better than the feeling of being able to spoil the children or grandchildren. With increased disposable income gifts, day trips, holidays and even regular pocket money all become possible.
Getting Away from it all
What better way to use your extra disposable income than take regular holidays? Enjoy warm winters, relaxation and pampering or an activity packed trip depending on your personal taste. Now you no longer have the worry of paying a mortgage, that extra cash could be put to good use to seriously improve the quality of your life in retirement.
Living a Leisurely Retirement
With the need to watch the pennies eliminated, you could be out and about making new friends at local clubs, pursuing your leisure interests and taking part in your favourite sports. Properly enjoying your retirement as you should be!
Whilst equity release is often used as a way of freeing cash for larger purchases or projects such as new windows or a kitchen refurbishment, it’s good to remember that the smaller things in life can often make the biggest difference. Freeing cash from your home to pay off a mortgage or consolidate debts could be the answer to a comfortable, fun and happy retirement!
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration. By consolidating existing unsecured debts, the term and overall costs of these debts may be extended.
Bower is an FCA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information email [email protected] or call 0800 4118668. Bower offers a no obligation initial consultation to homeowners considering equity release.