As you ask yourself “Is equity release right for me?”, you might like to compare it to alternative options to see which best meets your needs. Ultimately, it always comes down to your current situation – and the position you want to get to in the future.
The alternatives to equity release might include:
- Using savings, investments or other assets to boost your income or give you a lump sum.
- Releasing capital by moving to a less expensive property.
- Taking out a Retirement Interest Only mortgage.
- Get a part-time job.
- Exploring social security or other benefits.
- Also, If you’re looking to do some home improvements you might get help with repairs, improvements, or adaptations from the local authority, a charity, or Home Improvement Agency.
Maybe you could rent out a room in your home? The government’s ‘Rent a Room’ scheme lets you earn up to £7,500 per year tax-free, however, consider the impact of this income on any means-tested benefits or social care services you receive.
Have a look at my article on Part-Time Work in Retirement, whilst returning to work may feel like a backward step, the difference in part-time work compared to the responsibilities you had during your working career can be dramatic. It’s also a great way to expand your social life!
Perhaps an alternative to raising funds through equity release might be seeking financial support from family or friends who might be able to help?
Having considered these alternatives to equity release, you may reach the same conclusion as I did, equity release is the most suitable option.
