Broaden the horizons of your later years and unlock the value of your home to help you quench your wanderlust.
New research has indicated that increasing numbers of the UK’s over-65’s are using their later years to see more of the world. With a 13.7pc increase in the number travelling overseas between 2014 to 2016, they are now the age group most likely to travel.1
However, there has been a shift in attitudes to travel amongst this age group. The traditional retirement holidays spent aboard cruise ships and on golf courses are being replaced by adventure tours. Far from being over the hill, today’s retirees are getting over the mountain!
If you too dream of a retirement spent seeking thrills around the world, then the value of your home could help you realise your ambitions. With a lifetime mortgage, you could unlock a portion of the value of your home as tax-free cash to spend however you wish. Unlike other equity release options, a lifetime mortgage ensures that you retain full home ownership for life. What’s more, there are no required monthly payments to make. This means that your budget could be given an additional boost, allowing you to make the most of your retirement.
Lifetime mortgages are designed to reflect the range of different needs you may have in later life. That’s why there are products that allow you to take your tax-free cash as a lump sum, and others that allow you to create an interest-free reserve to drawdown as and when you need it. As interest only accrues on the cash you actually release, this plan can help mitigate the effects of interest in the long-term. As interest-rates are typically fixed for life, you can also be provided with accurate projections of the costs of your lifetime mortgage.
It is important to note that accessing some of the value of your estate now will reduce the amount available in the future. However, plans are available that allow you to ring-fence a portion of your equity to provide a guaranteed inheritance should you wish. Boosting your disposable income with tax-free cash may also affect your entitlement to means-tested benefits. A financial adviser will be able to provide you with a personalised illustration of the features and risks to you. All plans from lenders approved by the Equity Release Council feature the no-negative equity guarantee, meaning that you cannot owe more than the value of your home or pass on lifetime mortgage debt.
Whether it is hiking in the Himalayas, trekking across the Sahara, or exploring the Amazon, unlocking some of the value of your home could help you enjoy a retirement of adventure and fulfilment.