What are the Pros and Cons of Equity Release?
Equity release has come a long way since regulation in 2007, as the UK’s 55+ population seek to safely take advantage of their biggest asset to fund their ambitions. For years, you have been steadily building up the equity in your home by making mortgage payments every month. There are ways to take advantage of this home equity using modern, regulated financial tools which allow you to safely and flexibly access your property wealth, to spend as you choose.
There are many pros to taking equity release, the money you withdraw from your property is tax-free and can be spent as you wish with no monthly repayments to make, unless you choose so. If you are still making monthly mortgage payments, releasing equity in your home may be the answer to your financial concerns it will allow you to become repayment mortgage free, meaning you can reduce your monthly outgoings and free up cash for more rewarding things.
Imagine the difference the money could make in everyday life, helping with travel, food, bills and other living expenses. You may decide that you want to make some value-adding home improvements such as an extension, attic conversion, or landscaping the garden. Consider how it would feel to have the money to take that holiday you’ve always dreamed of, perhaps visiting family that you haven’t seen for years?
There are very few cons to releasing equity but you do need to consider a few things, by taking money out of your property there will be less left later when you want to leave some money in your will, also if you are in receipt of state benefits having money in the bank may affect them.
To speak to an equity release specialist to find out more call Freephone 0800 652 2955