Many of us have set out plans for the future to determine how we will manage our finances. However, realising the financial plans that you have set out to achieve is not always possible. Changing financial circumstances and even the ever changing economic conditions sometimes leave us in a position where we need to raise extra cash in later life. If you're one of those people who needs to raise some extra cash for your future then releasing equity from your house to raise cash should be considered.

Releasing equity from a house using an equity release scheme can be a quick way to raise extra cash from your house. Equity release can be a good way to raise tax free cash if you're not planning to leave a large inheritance to your loved ones. Equity release essentially helps you unlock the equity that is locked in your house to turn it into cash.

There are different ways in which you can release equity from your property. Two of the most commonly known methods of releasing equity from a house are known as home reversion plans and lifetime mortgages. There are also other methods of releasing equity from a house that are currently being used by many.

The lifetime mortgage is basically where you take a loan which is secured against your property. The amount of capital that you borrow will accrue an interest over the lifetime of the mortgage and this interest and capital is repaid to the lender when your house is sold. Releasing equity with a lifetime mortgage means that you can stay in your house for the rest of your life until death or until you are taken into permanent care.

Releasing equity from your house using a home reversion plan means that you sell your property to an equity release company who will then give you cash in return. As with the lifetime mortgage you can also remain in your house until the end of your life or until you are taken into permanent care.

Releasing equity from a house using either one of these plans allows you to raise cash as either a lump sum or you have the option to get paid a regular monthly income. Another thing that is common with both of these equity release plans is the fact that you can use the cash for any personal reasons. There are no restrictions here. Whether you want to clean an outstanding debt or you're looking to raise extra cash to spend on the day-to-day necessities, cash from equity release schemes can be used for any purpose.

When you are shopping for an equity release scheme, it is imperative that you choose the right scheme to ensure that it meets your financial goals and your current financial circumstances. Releasing equity from a house is a lifelong commitment and getting this decision wrong can prove to be very costly. So if you're considering releasing equity from your house then have a chat with us for an obligation free discussion advice about the different options available to you.