People in retirement have worked hard their entire lives to save for this moment. Many have invested wisely in their homes over the years. However, that value is now locked into the place they live in. Equity release schemes unlock that value, without having to move house.
Many people look forward to retirement in the UK, but often when they get there they find that their pension does not provide enough money to really enjoy themselves. If they have paid off their house, then equity release schemes are the perfect way to give themselves a little bit of extra money.
Equity release schemes are mortgages, but for retired people who have already paid off their house. These are financial products that are specifically designed toward people releasing value from their homes while in retirement. This specialism means that there are often features of equity release schemes which are useful to retired people.
For example, there equity release schemes which provide a monthly stipend, like a wage. The monthly amount is released from the home's value - but to the customer it feels like an ongoing salary. There are other products which come in a lump sum, great for renovations or large scale purchases.
For people going into retirement, sometimes the pension they've saved up isn't enough. Or they have a lot of money tied up in their house, and they'd like to use some of that to buy a boat. For these cases and many more equity release schemes are an excellent solution.
