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Remortgaging To Release Equity
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Remortgaging To Release Equity

As we get older we may want to consider releasing equity in our properties to some of the other mature people using remortgaging to release equity for extra capital. As the older generation faces more financially demanding times remortgaging to release equity is definitely an option to consider seriously. The over 55s are witnessing real pressure on their pensions and this is making more and more people turn to remortgaging to release equity.

Release of equity is not only being looked at by people who are seeing their finances dwindle. Remortgaging to release equity is also being used by the older generation to improve their lifestyle during the last stage of their life. Some of the ageing population that is property rich but cash poor is beginning to realise that if there are no pressures of leaving inheritance to children it is worth looking at equity release to benefit from the extra cash while they are still alive.

The option of remortgaging to release equity can be used to raise money for a wide variety of personal reasons. The lenders who offer equity release schemes allow the beneficiary to use the money in any way they like. Some of the typical examples of using money from equity release include:

- using the money to make home improvements
- funding the extra day to day living necessities
- paying for private medical care
- using the money to give to children and family before you die
- making new investments to turn the money from equity release into additional income
- funding extra travel (figures show that an increasing number of the ageing population is travelling abroad to enjoy a better retirement and equity release is helping some people achieve this goal)
- settling any outstanding debts to start afresh with your finances
… and many more

The above is just a selection of examples of how equity release is commonly being used by people remortgaging to release equity. The most common remortgaging product that helps people release equity from their homes comes in the form of a lifetime mortgage. With this plan lender issues a loan to the homeowner. The loan is either paid as a regular income to the borrower or it can be paid out as a one-off lump sum. Interest is added to the loan throughout its duration and both the capital and the interest is repaid by the sale of your property when you die or when you are taken into permanent care. The homeowner has a right to stay in their property for as long as required or until they are taken into long-term care.

With finances of the older generation being squeezed with increased cost of living and pressures on people's pensions some people feel that raising money by remortgaging to release equity is the way forward. With so many deals available on the market anyone considering raising finance through equity release should seek independent advice to find that the best option for them. We can offer independent advice to help you find a suitable plan for your needs. So call us for a confidential chat to review your options to see how much cash can be made available to you from the equity in your property




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