One of the Best Ways to Get Extra Cash for Your Retirement: Equity Release
Equity release is a method of financing your own retirement. It’s also called equity drawdown, or lifetime mortgage. Equity release allows people to tap into the value of their homes and other assets in order to supplement their income when they come up short on cash for living expenses – without having to sell those assets outright.
One of the more popular types is a “reverse mortgage,” which allows older homeowners to borrow against their home’s value without having any interest payments until they’ve paid off the loan in full. A drawback, however, is that seniors who don’t own homes are not eligible for this type of equity release. Furthermore, borrowers must be at least 62 years old and have lived in their house or other property for at least five years before applying.
In contrast to reverse mortgages, income drawdown does involve monthly repayments but these loans compound instead of being repaid over time like with traditional debt-based borrowing arrangements such as credit cards (e.g., Visa) …. This means you can release between £20 up to £100 per month, depending on how much the property is worth.
The equity release market has experienced unprecedented growth in recent years, and it’s not difficult to see why: Equity release allows people – especially those who are over 65-years old with no other source of income outside their retirement account or pension plan – to maintain a comfortable lifestyle without having to work any more than they already do. That said, though, this option does come at a cost. That means you need to weigh the pros and cons before you decide whether this is a good way for you to supplement your retirement income.