For those recently retired, it can be quite an adjustment to get used to a drop in revenue. Wanting to retire in comfort may not be as easy as you’d expect. Homeowners may find themselves asset rich but not in cash available, which is why many choose to release some of the equity in their homes. Here are some reasons why people in retirement may want to enter into an equity release plan:
- You do not want to move
Some people consider downsizing as a way to free up cash, but for many this is not something they really want to do. Perhaps they prefer to live in the family home or just do not want the stress of moving house. Equity release means you can stay in your home, but you can access some of the wealth locked up in it. Find a financial advisor to assist, preferably one that uses Financial Software to make the process simpler. Find out about Financial Software available at a site like Intelliflo.
- You need to pay off debt
Equity release can also be used as a means to pay the outstanding mortgage or other debts. This usually happens with interest-only mortgages when homeowners have not saved enough to pay back the capital. Savings may not do as well as expected and there was not enough to clear the mortgage.
- Home Improvement
Maybe you want to invest money into maintenance and modernization of your property. Finding a large amount of cash in retirement for such plans is not easy, so many turn to equity schemes for assistance.