Equity release, whilst in its infancy, had the misconception that it was to be used only for funding the finer things in retirement. Of course, this remains true today – retired homeowners are taking full advantage and reaping the rewards of the vast sums of equity that they have built up over the years. However, this particular scenario depicts far less than the whole picture.
As mentioned before in this news section, the growing trend is for retired homeowners to use equity release to help their family both through difficult times and positive times, such as buying a first home.
Little mention has been made, however, of the significant proportion who are releasing equity in order to clear their mortgage to liberate themselves from the stifling nature of monthly repayments. A mortgage is usually one’s biggest monthly outgoing whilst taking out an equity release plan doesn’t incur any monthly repayments at all. Those who use equity release for these everyday purposes and bills may find they have much more money of their own to enjoy the retirement they have earned.