Well the simple answer is…anything.
The following article explains the many uses Equity Release Supermarket advisers have experienced in the current financial environment.
Upon receipt of the equity release cash lump sum there are no restrictions as to the usage of funds.
A large proportion of equity release customers are using the cash released from their home to repay debts, be it mortgages, personal loans or credit cards.
Research has shown that the majority of customers are considering taking out equity release schemes to unlock some of the value in their property & repay these commitments, thus alleviating finances through their retirement years.
A breakdown shows that approximately 24% of equity release sales are by customers who use the money generated from their home to repay their outstanding mortgage, while a further 33% of homeowners use it to repay the remaining forms of liabilities.
The main reason for this course of action, is to reduce the burden of debt at a time when income from investments has fallen due to the reduction in savings interest rates & stock markets. By reducing outgoings, retirees consequently have more disposable income with which they can enhance lifestyle & make retirement more comfortable & less of a worry.
Other popular uses of equity release include making home improvements including new conservatories, kitchens & bathrooms even alterations to the property to cater for disability purposes.
Other uses are the increasing popular holiday’s & cruises or giving the money to their children to help them get on the property ladder or even establish them in business.
However, many people have commented that children would benefit from their inheritance when they are raising a family & finances are at their maximum. Therefore people are taking out equity release schemes to gift their children an early inheritance at a time when it would be of most benefit.
Again, independent advice should always be sought as equity release can affect certain means tested benefits & gifting to children can also have implications that a suitably qualified adviser can explain.
MG
