What are the alternatives to Equity Release?
Things you should consider:
Can you sell your current home and purchase a smaller property or a property in a cheaper area? This could reduce debt or help you release cash. You may have less space and be further away from friends and loved ones.
Have you got any other investments you can use?
Using other savings or other investments may help you with your immediate needs. It is important to maintain an ’emergency’ cash reserve and you should always consider any tax implications on cashing in any investments.
Other types of borrowing
Can you borrow the money you need from another source? Can you afford or would a traditional mortgage be more suitable for you? if you are looking at a traditional mortgage you will need to ensure you can make the repayments, potentially into retirement and beyond. Mortgage lenders would need to be happy you have sufficient long term income to service the mortgage repayments.
Have you got any other retirement plans that could help?
If you have any unclaimed pensions, have you considered taking your 25% tax free cash allowance? Your pension is intended to provide you with an income in retirement, but you don’t always have to give up work to start taking your pension and don’t have to take an income immediately. Taking a lump sum from your pension and taking an income later may be a more suitable option. It is important to seek advice and/or guidance from a pension specialist when considering accessing your pension.
Can friends or family help?
We always ask you to discuss looking at Equity Release with your family before making any decisions. During these discussions you may find that family or friends can help you out, even if only on short term basis. This may be a better solution for you.
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