Releasing equity from your home
Your home may be the biggest investment you’ve made in your lifetime.
Although we usually think of your workplace pension and perhaps the State Pension as the main sources of income in retirement - there may come a time when you need extra income to top up your pension or spend on something you need.
Your home could be that source of income when you need it most.
There are two common options:
- Downsize – you sell your existing home and buy something cheaper which leaves you with cash left over.
- Release equity from your home – you stay in your home but release cash from it now.
- Perhaps your home feels too big now the children have left or is too expensive to maintain?
- Maybe you always planned to live somewhere else when you no longer needed to work?
- If the children have moved away from the area, you might want to move closer to grandchildren?
These are just some of the many reasons to consider downsizing. Not only will you release money from the sale of the home but you could also save more money as a smaller home will usually mean lower energy bills, and cost less to maintain.
Equity release is a product that lets homeowners aged 55 and over take some of the money built up in their home, as a tax-free cash sum. There are two types of equity release, lifetime mortgages and home reversion plans.