Examples of how equity release can help in retirement
Paying off an interest-only mortgage
You may be able to use equity release to pay off an interest-only mortgage. Perhaps you find the monthly interest payments too much of a stretch for your retirement finances? Or maybe your mortgage term is coming to an end and you have no means of repaying it?
If you don’t have savings or investments to pay off the capital from your interest-only mortgage, or want to end the monthly interest payments, you may be able to use an equity release lifetime mortgage. You can continue to live in and enjoy your home without the burden of monthly payments.
Taking a phased retirement
Some people choose not to take full retirement straight away. You may not be able to afford to stop working altogether. Or it could be that you want to reduce your hours, perhaps for health reasons, but don’t want to give up your working life altogether just yet.
By taking smaller amounts from your home equity as and when you need to, a drawdown lifetime mortgage could help you top up your income when you reduce the hours or days that you work.
A plan can also be used to bridge the gap until your State Pension or other pension income begins, should you wish to take retirement early.
Making repairs to the house
Roof or fence repairs after a storm, the boiler packing in or damp in your walls can all be very expensive to repair, especially for those of us living on a pension income. Making home and garden improvements are one of the most popular reasons for arranging equity release.
On top of any repairs you need to make, you might choose to extend your home or make it more accessible for later life living. You might even want to install a new bathroom or kitchen to get the most from your home in your retirement.
Enabling travel in retirement
Many of us dream of travelling more in retirement, which is why holidays are one of the most popular reasons for equity release. Not only is a good trip away good for your stress levels and mental health, but exposure to all that fresh air, fresh food and culture is fantastic for the body and brain too.
If you really want to get out there and travel in retirement, a caravan could be an ideal purchase! From travelling the length and breadth of the UK, to taking trips across the whole of Europe; you could get a lot more out of your retirement years thanks to equity release.