The Reasons Why Equity Release Is a Sound Financial Decision.

As we move through life, situations pop up where we need cash quickly, and at very short notice. Obviously we have money in the bank for a rainy day, but sometimes this isn’t enough, or you’ve already put that money aside for something else. It might be a business opportunity that is too good to be true, and you would be foolish to pass it up because you don’t have the necessary cash to pay for it. Nobody says that you have to walk away from a great deal, because there are financial schemes in place that will allow you to access to money, using the equity that is tied up in your property. The wonderful thing about it, is that you can take it as a lump sum or in instalments, and it’s entirely up to you what you spend it on.

There are a number of reasons why people apply for equity release loans, and some of them include making improvements to their current property, topping up their income so that they can live a more comfortable life, helping out family members, or to treat themselves to an exotic holiday. Whatever your reasons for taking out the loan, it comes with many advantages. The following are just some of those.

  • You get to stay where you are – Just because you’re getting a loan based on the equity of your property, it doesn’t mean that you have to sell your current home. You might even be using the money to make improvements to the property that you’re borrowing on, and this is essential if you’re getting older, and the retirement age is not far off. You can make changes to your property to make life a little bit easier.
  • No monthly repayments – You can decide not to pay back any of the loan or the interest, until it comes time to sell your home or when you die, or you move out on a permanent basis. This means that you won’t have any additional bills every month, and this can be very useful with regards to your finances. You can of course opt to pay off the interest to keep the debt down, but that is entirely up to you.
  • You have access when you need it – You have two options when you take out an equity release loan. You can either take it all in a lump sum, or you can receive smaller amounts of money over a period of time. This will provide you with a very regular income, and you just need to negotiate the limits that will be set out by your plan provider.

There is no reason not to be able to enjoy the life that you have planned yourself, just because you don’t have the necessary cash. It’s your home, and it’s up to you what you do with it, and if you decide to use it for an equity loan, then that is a smart financial move.

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