Equity Release To Supplement Retirement Income

Equity Release To Supplement Retirement Income

Most people who have retired will have a steady stream of income that comes from their state pension, their private pension or a defined benefit work pension. Some people may rely on their savings to create an income, and others may have property investments that provide rental income. There are numerous forms of retirement income, and many people are satisfied with what they have.

However, there might be reasons that prompt people to become interested in releasing equity from their properties in order to provide a supplementary – or primary – source of income. These could include:

  • Current level of income is insufficient.
  • Do not want to move home in order to release money.
  • Would like to make use of the money that is locked in their homes.
  • Would like to treat themselves to a new car, good holiday or make some home improvements, etc.
  • Would like to treat their family or friends, and to be able to share in the enjoyment of their treat.

Easy Way To Help With Your Retirement

Taking out a Lifetime Mortgage, or other form of equity release plan, can enable you to release money from your property without having to make any substantial monthly payments. The money you have loaned will be paid back when your property is sold (typically, when you move into care) or when you die.

The only monthly payments you may need to worry about are those that are associated with a Retirement Mortgage which is a cross-over between a conventional mortgage and an equity release mortgage: you will have to pay the monthly costs of the interest on your loan.