The increasing choice of funding for a retirement.


As will are becoming an increasingly aging population our retired citizens are starting to find that the pensions that they paid into and the moving goalposts of the state pension, despite the triple lock, has been a cause for concern. The cost of life is increasing and the pension levels that were set up are no longer in keeping with modern costs. Added to that the care costs for the elderly are rising as the effects of dementia and Parkinson’s start to rise and become more common. There are alternatives that are being sought to get that extra cash for those later years. While this article in no way constitutes being advice it will talk about the types available of something called equity release. If you want to get more information and proper advice about Equity Release Wiltshire then a visit to is a good idea.

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Equity release is a way of generating income for you from you home. It basically means getting a mortgage again and whist it might seem counter intuitive to start something that it took most of your working life to pay off these are very different from what you might have had before. You will need to look closely at each type and see which is the most suitable for you. In most cases you will still own you home not the lender or you will own the majority of it with the lender having a small percentage. One other thing to remember, the value of your home defines the amount you can borrow based on the loan to value. In other words if your property is worth £100k and you take out a 25k loan you have a loan to value of twenty five percent.

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In most cases with Equity release schemes you still own the home but take out a loan where you may only pay back the interest every month or not even pay anything back at all. You still owe the amount you have borrowed but the repayment vehicle is the home itself. If you sell property, move out into full time care or should you die the home has to be sold and the amount that you borrowed is deducted. This will mean less in terms of inheritance to you children and it may also mean that they do not inherit anything at all depending on the house’s sale price. That is a risk that the lender has to be concerned about not you. Whilst we offer no advice we shall say you should think very carefully before you undertake this course of action.

Written by suNCh8

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