We’ve all heard the expression: An Englishman’s home is his castle. It’s an old expression but is still true today, and on so many levels so we thought we would take a look at how this castle can be put to good use in retirement especially, when property prices are still increasing.
A report published this week shows that there is an increase in the number of retirees using equity release to repay their outstanding interest only mortgages. In fact the number of cases has almost tripled from April 2014 to April 2015. The main advantage is replacing a monthly mortgage payment with a scheme that does not require any monthly payments at all – potentially very useful if you are looking to spend your pension income on enjoying your retirement rather than servicing a mortgage.
But what else can equity release be used for? The list is surprising varied.
In recent years we have seen equity release used for raising money for home improvements – great for building the extra bedroom for when the grandchildren come to visit, or for building the conservatory to enjoy the garden whilst keeping warm and dry in our English summers.
Others have used it to release money for inheritance tax planning or to pass on money to children at a time when it might be particularly useful or to help grandchildren repay tuition fees before taking their own first steps on the property ladder. Of course, it can also be used to help out children and grandchildren with the deposit for their first or next home.
And then there is the bucket list, nothing morbid, just the realisation that there really is a whole world waiting to be discovered. So if your greatest desire is to watch the wilderbeest sweep majestically across the Masai Mara and you would rather see if from your safari in Kenya that out of a bedroom window in Fawlty Towers in Torquay, or if you just fancy travelling to the World Cup (wherever that may be!), here is one way of achieving that dream.
Equity Release is a highly regulated area of financial planning. The lenders we use all adhere to a Code of Conduct from the Equity Release Council. It is not the solution to every single requirement, but it can be used to raise additional funds to boost your retirement income or capital without having to downsize.
If you would like more information on the above article or advice on your personal financial circumstances, please contact us >>