Debt affects people of all ages, from the young to the old, and many people are looking for ways to boost their income in order to keep their debts down and paid on time. Additionally, many people who able to secure a lump sum of money use it to pay on their debts. If you need to secure a large sum of money and you would prefer not to take out a conventional loan, you have another option. If you are over 50 years old and you own your own home, you could qualify for an equity release scheme.
An equity release is a way for older residents to get money from the value of their home. You can take the release in a lump sum or as an additional monthly income, and you can also use the money in your home with tax planning purposes. The only thing about equity release is that you do have to pay the amount you take back, and this is usually repaid out of your estate when you pass away. This keeps you from having to worry about paying a loan that you may or may not be able to afford.
Equity release is perfect for senior citizens that are living on the fixed income of their pensions and who could be struggling financially during these trying economic times. Additionally, if the pensioner doesn’t have anyone to leave a large estate to, they could go ahead and get the equity out of their home now. When they pass on, the sale of the home will pay for the equity release loan and lessen the amount of the estate that is left to be distributed to the survivors.
Before engaging in an equity release scheme, do all of the research you can on it. This type of scheme is not useful to everyone, while it is the best solution for others. There could be other ways of solving your financial problems without having to release the equity in your home. Some of the other solutions could include but are not limited to:
- Benefits that you are entitled to claim that you do not know about
- Checking on all of your pensions to make sure you are receiving all of your benefits
- Asking your local authority for financial help that you may qualify for
- Cashing in your investments, using some of your savings, or selling some of your items
- Selling your home for a smaller, affordable house
There are different types of equity release schemes available to use if you decide that this is the road you need to take. The best thing to do is contact your financial advisor and discuss with them the best scheme for your needs. You can sell your home and receive a regular monthly income or a single lump sum payment if you feel that this is what you need. To qualify for an equity release scheme, you do need to have your mortgage
completely paid in full on your property. Even if you only have a small outstanding mortgage left on your property, you may still qualify for an equity release.