Especially as you grow older and stop earning an income, money can become tight, especially if ailing health means that you have rising medical costs. But if you own property, using equity release solutions can help to pay off debts and meet daily expenses.
What are equity release solutions?
Equity refers to the value of your home less any mortgages or loans. With equity release solutions you can have access to this cash that would otherwise be locked up in your property. This extra money can be given to you in a lump sum or in a series of monthly instalments. One of the greatest benefits of equity release solutions is that you may use the money paid out however you wish. It is a particularly good way to pay off outstanding debts such as loans and credit cards, decreasing the amount of interest you pay on these debts every month.
How do equity release solutions work?
Typically, there are no monthly repayments on the lump sum or monthly payments that you receive, although equity release solutions will affect the value of your home. If you are put into care, sell your home, or die, the amount of equity paid out to you will be deducted from the value of your house from the lender.
How do I qualify for an equity release solution?
There are a number of criteria to meet before qualifying for an equity release solution:
• You must be aged between 55 and 95 (if you are a couple, both partners must be within this age bracket).
• You must own a home.
• Your property must be well-maintained and made of standard construction materials (walls of stone or brick, and a tiled or slated roof).
• Your home must be your main place of residence and you must have lived there for over six months.
There are a number of equity release solutions available that can be tailored to meet your specific needs and budget. If you are struggling financially, taking out an equity release can be an easy and effective way to use the value of your property to pay off unwanted debts and help with living expenses.