The Best Alternatives to Equity Release
If you are in the position where your home is worth more than it is currently mortgaged, and you want to retire but don’t have enough money saved up to do so, then equity release could be a good option for you. Equity release is also known as ‘equity drawdown’ or ‘home reversion’. It allows property owners to access their housing’s equity without having to sell up or move out of the property.
Alternatives to Equity Release: In many cases, those who are considering applying for equity release may find themselves with not enough savings or assets apart from their property which could make it difficult if they were living alone. There are alternatives such as equity release on your property, which offers a chance for those who are struggling financially to remain in their home until they die.
If you are in the position where your home is worth more than it is currently mortgaged, and you want to retire but don’t have enough money saved up or assets apart from your property that could make it difficult if living alone there are alternatives such as equity release on one’s property which offer a chance for those who are struggling financially with remaining in their homes until death.
Equity release is designed to allow homeowners over 55 years old have access to their housing equity without having to sell up. It usually involves a lump sum payment that will be used as an income for the remainder of the individual’s life, and can be tailored depending on how much money they need every month after retiring. The homeowner leases back their home from the lender at market rates during this time, but when it comes time for them to die, all outstanding mortgage debt (including interest) is written off in one go.