If you have retired and are facing a financial piece, then what do you do? You have probably tried to face it with the help of your savings and retirement. But what if your pension amount is modest or you do not receive any pension at all and your savings are not much either? You are left with the option of borrowing from friends and relatives, or if you are lucky enough to have a property to your name, you can either sell it off or mortgage it. But none of these are very practical options since selling or mortgaging your property would leave you homeless and borrowing would hurt your self-esteem. What you can possibly do is if you have a property to your name, you can go for a home equity release.
You may also be interested in Frequent Finance Halifax Equity Release
Also known as savings loans, it is very much like general mortgages with only two very important differences, set them apart. First let's discuss the similarities, just like general mortgages, home equity release also has the function you would get a loan against your property and you can repay the loan and get your property back at any time. As stated above you can repay your loan, the biggest difference is that you do not have to repay the loan ever.
Your property will still belong to you, unlike ordinary mortgages, but only until you die ie your recipients will not get this special property. Another difference is that you do not get to determine the size of the loan. It would totally depend on the valuation of your property. Even if your requirements are more than your property valuation, you will not be given it against the savings loan. This is a disadvantage of home equity release but against borrowing or selling or mortgaging, this compromise is a far better solution.
As you would not be able to leave your property to your recipients, this option of savings loans is mostly suitable for people who have no one to leave anything to. If you are such a person too, you can go for it even if you have no financial needs. Instead of leading your life like normal retirees, you can spend the money you are going to live the rest of your life king size, in luxury, and be envied by everyone around
