When you are retired it is often very difficult to get finance to fund expensive home improvement projects. This is where equity release could help you. You can use the equity in your home to borrow funds to fund your projects.
Lets consider that may need to replace the windows in your property, you have put up with the poor state of repair for a long time and you now really do need to replace them, but where do you get the £8,000 it might cost to replace them. If you own your own home then you could be sitting on a considerable sum of equity that you could utilise using an equity release plan.
How does it work?
Consider this example, John and Anne own a property worth around £250,000 and have no mortgage outstanding on the property. They are both age 65 and at this age they could probably borrow about £75,000 but they only need £8,000 for the new windows. Although they would love to fulfil their dream of a cruise down the nile in Eqypt. So they enquire about borrowing £10,000 under an equity release scheme.
They would lend the £10,000 and would not have to make monthly repayments which would really help with their budgeting of household expenditure. The interest would of course still be charged and rolled up and added to the loan daily.