- Monday, 28 May 2012
Equity release is a way of raising money against the value of your home. It is vital to take independent financial advice before signing up to a scheme, to make sure you consider all the possibilities and implications.
You may have started to think about how you will manage financially in the future. If you own your home and have little or no mortgage, you may be considering equity release as a way to boost your finances. You borrow money against the value of your home, but pay nothing back until your home is sold – either after your death or if you go into a care home.
Equity release is a big decision and might not be the best or only solution. Start by thinking about other ways to raise money – perhaps by moving to a smaller property or checking you’re claiming all the benefits you’re entitled to. Ask yourself important questions – if your circumstances change, will it affect your ability to move? If you receive benefits, what will the impact be? If you have children, how will they feel about it? Most importantly, take independent legal and financial advice before deciding to release equity from your home.
Use the online benefits calculator to help you find out whether you’re claiming all the benefits you’re entitled to.
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