Home Finance Top 6 Reasons People Choose Equity Release

Top 6 Reasons People Choose Equity Release


Over the years, equity release has had mixed press in the media, but for homeowners over the age of 55, it’s an option that provides freedom that otherwise may be out of reach. With the cost of living on the increase, homeowners are looking at ways to adjust and adapt. Equity release certainly offers an option to enjoy life more now, and not just for the future.

There are many different reasons that homeowners are choosing to proceed with equity release which we’ll explore in this article. But first, what is equity release?

Essentially, equity release is the process of releasing equity from your property that you have built up over the decades so that you have the ability to free up money to do the great things in life, whatever that may mean to you personally. The amount of equity you’ll be able to release will be directly associated with how much your home is worth, your age, and outstanding payments still left to pay on your property. It’s always worth speaking with a trusted and accredited mortgage broker just like Thameside Mortgages to discuss your options.

To Undertake Home Improvements

In recent studies undertaken, it’s proven that undertaking home improvement is one of the most popular reasons why homeowners over the age of 55 decide to proceed with equity release. Up to 30% of homeowners that release equity from their homes in later life do it to improve their home in various aspects. It’s proven that home improvements can help to add value to your property and greatly improve the quality of life.

To Consolidate Debt

Another popular reason that homeowners decide to proceed with equity release in later life is to consolidate debt once and for all. You may have had debt hanging over you for some time, sometimes even decades that hasn’t fully been paid off, and now you want to clear the debt for peace of mind and to get your finances straight. For example, debts that may be paid off due to equity release could include car loans, student loans, and many more.

To Explore And Travel

How many of us wish to explore the world when we retire? Although this is a big dream for many of us, it can be unfeasible for many. That’s where equity release may be an option for some. Many homeowners proceed with equity release to make their dreams a reality. Once your money is released from your home in the form of equity, you can use it for any chosen purpose in line with your life goals and dreams.

To Help Children Financially

Another popular reason that you may decide to release equity from your property is to help your children financially. With the cost of living increasing and life becoming increasingly difficult to afford, this is becoming a favourable option for many parents that have built up equity in their properties over the decades. For example, you may want to help your children secure their first home by starting them off with the initial deposit and the first year of mortgage payments.

To Increase Disposable Income

Many of us are heading towards a cash-squeezed retirement which puts a lot of limits and restrictions in what we can do to enjoy later life. By proceeding with equity release, this may help you to increase your disposable income which may help contribute towards a better standard of living on a daily basis. It’s always advisable to speak to a mortgage broker about equity release to identify if this is the best option or not for you.

Is equity release right for me?

It’s difficult to give a definite answer whether equity release is suitable for you and your financial situation. As stated above, it’s always advisable to speak with a mortgage broker to discuss your options. If you have paid off the majority of your mortgage, or if you are mortgage free, it may be well worth considering an equity release scheme.


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