Finance

My Retirement Income Has Fallen: Should I Use an Equity Release Scheme?

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There are various triggers, factors and scenarios that can result in a decrease in retirement income. The COVID-19 crisis is no exception to the rule, with lockdown restrictions having resulted in hundreds of businesses halting dividend payments.

So, does an equity release mortgage represent a viable and appropriate option for supplementing reduced retirement income?

An Entirely Circumstantial Decision

As with most major financial decisions, there is no simple answer to this question. Under no circumstances would any reputable broker or agent suggest that equity release is right for everyone. There are countless factors that need to be taken into account, in order to determine whether or not you are an appropriate candidate for equity release.

A competitive equity release scheme can provide retirees with welcome financial flexibility and freedom. Releasing equity in your home can provide you with a tax-free lump sum to do anything you want with, or an ongoing series of monthly instalments to supplement your retirement income.

In addition, it is important to remember that equity release does not necessarily mean releasing all of the equity tied up in your home. You could simply release a proportion of your home’s value to increase your retirement income to the required level, while retaining majority ownership of your property.

Before applying for equity release or making any major financial decisions, consult with an independent broker to ensure you fully understand the options available and the mechanics of equity release.

My Retirement Income Has Fallen

Is it Possible to Release Equity During Lockdown?

If you decide to go ahead with an equity release scheme, the good news is it is business as usual for the sector. Even during lockdown, equity release providers have been conducting ‘virtual’ valuations remotely to provide homeowners with accurate assessments of their property’s value and the equity available for release.

Determining whether or not now is an appropriate time to release equity in your home means discussing your financial situation and future outlook in detail with a reputable broker, however, financial uncertainty and severe reductions to income are prompting many to consider tapping into the money they have tied up in their homes.

Others are releasing equity to carry out refurbishments, renovations and extensions, having found themselves spending more time in their homes than ever before. From funding property improvement projects to simply boosting your monthly income, equity release can be surprisingly flexible and versatile.

Independent Support and Advice

Due to the potential risks that accompany all types of equity release, it is essential to seek objective independent equity release advice before entering into such a scheme. Along with helping you get to grips with the pros and cons of equity release, an established broker can familiarise you with the alternative options available to suit your requirements.

For more information on any of the above or to discuss the potential benefits of equity release in more detail, contact a member of the team at UK Property Finance today.

Craig Upton
Craig Upton

Craig Upton works with British website owners by supporting their website optimisation process.  Creating strategic partnerships and having keen focus to detail, Craig has a good track record helping companies in the UK gain access to new revenue streams online. Craig is the owner of iCONQUER.com, a UK based company and has been working in the digital marketing arena since 1999. A trusted entrepreneur, SEO consultant and trainer, Craig has worked with popular British brands and is not shy to get his face out there.  Craig is committed to creating new opportunities working with British companies.

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