This article comes from an interview with Andy Rowden, Over 55s’ Finance Specialist
Hello, here’s another article for you just to hopefully answer another common question asked about equity release. People often ask what sort of things would I use equity release for? Well, there are a number of things that people do.
• You can raise money on your home for home improvements or adaptations. One quick example is a couple I met once who loved their property and were very keen to stay in that property. They loved the area, loved the house, et cetera, but it was a normal two-story house. They were finding it a little bit difficult getting up and downstairs and a stairlift wasn’t appropriate for the construction of the property. So they installed or are looking to install a lift, great idea!
• Other examples of what you might want to do are extensions, roof repairs and anything like that. The equity released money can be used on all of these things.
• Another reason is to pay off any existing loans or debts (also quite common) or to pay off the existing mortgage, if there is one.
• Another reason people use equity release is for additional retirement income. Thankfully, we are intending to live longer now, but not thankfully, our pension pots are probably not quite as big as maybe our parents’ pension pots were. So we’re living longer but we’re quite often having a smaller amount of money to live on. We got a smaller amount of money, that’s got to stretch longer. So people are looking at additional backups to their retirement, to their pensions and so on.
• Also thankfully, we are more active these days aren’t we? I can certainly remember my grandparents, and thinking how old they were at 65, with their slippers on and so on. Not so these days. A lot of people, are looking at lots of travel, extra holidays, sports, entertainment, et cetera.
• Another reason is later life care at home. Sometimes people need some additional support for their health at home. Equity release funds can be used to help support that if that’s appropriate and so on.
• A final big one is helping family and friends get onto the housing ladder. Again that’s something we’re finding increasingly popular; wanting to help out via the bank of mum and dad, or as we did recently, the bank of grandma and grandfather, which was quite useful for their grandchildren. Some grandparents released some equity to pass on to their grandchildren to help them onto the housing ladder.
So there are lots of different options. Have a chat with your advisor to get some ideas and some options for you. Hope this helped and thanks for reading!