There are other alternatives which you should also consider, including different ways you could make use of the value of your property. If you are struggling to live within your means in retirement, you could start by looking at … Find out what you could potentially save by switching to a new plan. An excellent place to start is looking at all the direct debits you have arranged on your bank account. However, there are some very important factors to take into consideration before committing to anything. While there are various kinds of equity release plan to match different needs, it’s not always the right option for everybody. Releasing equity may end up being the most suitable option however it’s important to consider alternative options first. However, equity release poses several challenges and risks that not all homeowners wish to undertake. An alternative to equity release Equity release has become a popular option for those approaching or already in retirement to free up money from the home that they own. This is the classic 'downsize instead' which is usually the first point of call rather than taking an equity release. Learn how these lifetime mortgages work. Before proceeding with any equity release we would strongly recommend that you at least consider the following alternative ways of improving your finances or achieving your goals. Learn how they work. Find out the maximum you could borrow with a retirement interest only mortgage (RIO) – a residential mortgage, based on income that allows you to borrow on an open - ended basis into retirement. Learn about how they work and the range of flexible plans available. If your need is for an immediate lump sum of Alternatives to equity release . Asking family for financial assistance – as the children are likely to be the beneficiaries, it would be … Plus, if your new home is of lower value, you will stand to benefit less from any property growth (considering if all properties rise at the same rate). They make monthly payments direct to your bank account to spend as you wish. What would be the consequences of taking no financial action (equity release or other) now? Before taking out an equity release plan, you should check what the alternatives are. A small top-up provided by a lifetime mortgage could work out to be a very cost-effective way of borrowing. Equity release is a big financial decision. Before you make an irreversible decision … Have you explored all possibilities in terms of potential help from your family? It's quite often that pensions advisors work with us to help you access your money in the most tax-efficient way. Have you considered tightening your budget to achieve your financial goals? further details. Relocating to a cheaper area 3. Contact Your Lender. Find out the maximum amount of money you could borrow with equity release. Have you fully investigated all options as to your entitlement to state benefits? Another option to equity release is to look at other sorts of mortgages. Learn more here. You remortgage the property on a 50% LTV ratio raising £125,000. Learn how home reversion schemes work here. While a qualified equity release advisor has written this guide, it is not intended to be used as financial nor legal advice and should not be relied upon. You can visit their website www.independenceathome.org.uk to find out more about the work they do. There are several alternatives to Equity Release of which every customer should be aware. Equity release refers to a range of products letting you access the equity (cash) tied up in your home if you are over the age of 55. Free to use, equity release calculator range. I promised ten great alternatives; number 11 can be a bonus! 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