Retirement can be a wonderful experience, so long as money concerns aren’t a major issue. One way of ensuring retirees can supplement their pensions is to look at equity releaseschemes was a way of unlocking the money invested in their homes.
Equity release schemes are essentially mortgages for houses that have already been paid off. They are usually only available to people of a certain age. In this way they are tailored to suit people in retirement, and often contain features which help people enjoy their retirements.
As in a mortgage, key part of equity release is the interest rate, and how that is paid. Some schemes require that to be paid back on an ongoing basis. In this case, the actual equity released can be quite high and in one lump sum. Generally, this type of equity release is used to fund a large scale project, such as an extension or boat.
In other schemes, the interest is taken out of the owner’s share of the house. In these cases, rather than a lump sum, the equity release scheme pays a monthly amount. This is like a wage, but it is taking equity out of your house.
In both cases, the home-owner is still able to live in and enjoy their home. However, they are likely able to enjoy it even more now that they have the additional funds at their disposal.