bank-20795_960_720The number of new equity release customers is now on the rise, according to the Equity Release Council. If this is something you’ve been thinking about, then carry on reading to enhance your knowledge on this subject and if your interest is not satiated please email, or call us, for a chat to find out more.

Releasing equity in your home can provide you with a host of benefits. It’s definitely not for everyone, but if you’re looking for a significant income stream, or a cash sum, it could be right for you. Here are some equity release benefits.

 

1. Boost your income

If you and your partner are over the age of 55 and have a small mortgage, or no mortgage at all, on your home you might want to consider equity release. Releasing some of the value in your home can provide you with a boost in your income. You might want to use this income to supplement your pension or other investment incomes.

 

2. Pay off your mortgage

Another popular benefit of equity release is that people are able to pay off their existing mortgage with the money they release from their property. According to the Equity Release Council, equity release lending was at it highest in 2014 since records began back in 1993. More people are using equity release funding to pay off their mortgage when they reach retirement and when their current lender will not continue lending them funds.

 

3. Family Deposits

The Bank of Mum & Dad, or should that read the bank of Grandma and Grandpa, is needed more than ever to assist first time buyers, and home movers, get a new home and with house prices still outstripping incomes, especially in the south of England, often home movers struggle to put together the appropriate deposit.

 

Equity release might be a possible source of funding for these large capital outlays and as, for the most part, the beneficiaries are likely to have got this money in the will passing it on in life, and seeing the benefits this cash can bring to their children and grand-children, is often a more up-lifting way of seeing the benefits of distributing the cash early.

 

4. Make home improvements

With the money you release from your house, you can make home improvements or repairs to your property. You may want to do this for a number of reasons. Perhaps your home is showing signs of wear and tear or maybe you want to adapt your property to make living in it easier as you get older?

 

Making home improvements can also provide you with a significant return on your investment. An increase in the value of your home is ideal if you plan to put your property on the market in the future.

Equity release is not something to take lightly and will require considerable thought; however, for some people, it has allowed them to pay off their mortgage, supplement their income, make home improvements or help their children get on the housing ladder.

 

If you have questions to ask you are more than welcome to call us on 020 8441 2605, or 01442 232 272, or email us at infolondon@osfg.co.uk