The Uses of Equity Release

What would you do with a sudden cash injection into your finances? With Equity Release, you can access the money tied up in your house and use it to make your life better in any number of ways.

We know that not everyone who looks into Equity Release is thinking of luxury items or dream holidays (although those are fine!). Many people are taking out Equity Release on their property to pay for things that will make a big difference to their families, homes and wellbeing. Here are some of the most popular uses, which can be practical, personal or essential.

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Home Improvements

Is your house everything you want it to be? What might have once been a well-kept family home might now be past its best, which can be frustrating and demoralising when you don’t have any extra money for improvements.

Equity Release can provide the cash to pay for everything from much-needed repairs to refitted rooms or a full redecoration. You might need new windows and doors, or replacement carpets, curtains or blinds. Perhaps you want to upgrade the kitchen and bathroom, landscape the garden, fix the old fence and repair the roof.

Whatever the case, using Equity Release to improve your home will make it look and feel more modern and welcoming, which will increase its value.

Care Costs

Have you made a decision to stay in your family home? If you get to the stage where you need help with domestic chores like washing, dressing, cooking and cleaning, then you can probably get some help from your local authority. However, with cutbacks to local government services, the funding you receive might not cover the whole cost of home care, and you will be asked to contribute.

It might not be much, but it will add up over time, and on a tight budget you might have a problem making ends meet. Equity Release can give you greater comfort and dignity in later life without having to impose on friends or family.

Mobility Equipment

Is your body aging faster than your mind? Are you finding it more difficult to get around than you used to? It is possible to get help from your local authority towards mobility aids, but it will likely be for the absolute basics.

With Equity Release you could have the funds to pay for a stairlift, a quality mobility scooter, adjustable beds and electric recliners, as well as getting your car adapted and your entryways improved. Don’t be held back when your mobility lets you down.

Paying Off Your Mortgage

How would you like to do away with your current monthly payments? Equity Release can replace your mortgage debt with a lump sum that you only pay off when you die or move into permanent care. You might only have a few years left on the mortgage, but this would free up a large chunk of money each month for you to use elsewhere.

Or have you found that the investment you took out to cover your interest-only mortgage is not able to cover the debt? You can use Equity Release to pay off the shortfall, keeping your home safe and the bank at bay.

Clearing Debts

Are you having trouble keeping up with one or more lines of credit, struggling to just pay the interest each month? Some loan arrangements can be very expensive, and it could be worth looking at Equity Release as a way of paying them off that will give you better value in the long run.

Just as with mortgage debt, outlined above, this would mean replacing ongoing monthly payments with a lump sum that will be only due when your house is sold. You should check the interest rates though, to make sure it’s the right decision. If in doubt, always talk to a competent adviser who will be able to point you towards the most cost-effective option.

Investments

Do you have an idea for a new business or investment? Whether you want to start a business yourself, join a friend in a new venture, or help someone in the family start a new business, Equity Release can give you the means to turn your plans into realities.

If the return on the investment works out to be more than the interest charged on your loan, then it will look like you made a wise choice. But, as we all know, putting money into something can be a gamble, and you may not get your money back. Always take financial advice before risking your retirement fund.

Helping Your Family

Would you like to help family members to change their lives for the better? Equity Release can give you the funds to help a child or grandchild to get on the first step of the housing ladder with the cash for a deposit. Or maybe they have a great business idea, but just need some funding?

Or could this be a chance to help your grown-up child and their family with their mortgage? Or are they having problems with debts? Imagine how they would be able to think positively about their finances instead of being tied down by monthly payments.

This could be a way for your family to make use of a future inheritance now, when they need it most, rather than wait years for you to pass away. Just make sure it’s clear whether the money is a gift or a loan, and square it with any other possible beneficiaries.

New High-Value Items

Are you feeling left behind when it comes to modern devices, clothes and belongings? You can make your life more efficient and comfortable by using the cash from Equity Release to upgrade or add to your high-value items like:

Transport – a modern car will give you better reliability, comfort and fuel consumption. Or what about new bicycles, a caravan, motorhome or even a boat?

Technology – an up-to-date computer will enable you to be more active online, manage all your bills more easily and stay in touch with family. You could also look at new music players, smartphones, a tablet and a high-quality TV.

Imagine no longer having to put up with worn-out furniture, an old car and clunky gadgets!

The Ideal Holiday

Are there places you’ve never been, that you’ve always wanted to visit? Perhaps somewhere you saw in a film, a city full of history and things to see, or an island resort tucked away from the rest of the world? Equity Release can help you turn that fantasy into a reality. After all, you only live once.

Do you want to know more about Equity Release?

Feel free to call us, or drop us a line via the Contact page, for a chat about your needs. It’ll cost you nothing to find out.