Alternatives to Equity Release

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Here we have provided a summary of the main alternatives to Equity Release, not all my apply to you.

Moving Home

Moving to a smaller property, or downsizing, can also generate a lump sum of money once your property is sold. Although moving house in retirement is not exactly a relaxing process it can be a good way to get the capital you require.

Borrowing Money

Depending on your age and circumstances it may be possible to borrow money from a bank or building society to give you the cash you need. Depending on the type of loan, the interest rates tend to be a bit higher than mortgages, and you are required to make repayments on the loan each month, which in many cases defeats the object of borrowing the money in the first place

Help from Relatives

Some may be able to come to an arrangement with their relatives and borrow the required money from them. This can be the cheapest way of obtaining the cash you need, and also the quickest.

Use of other Assets

Many people have assets such as investments or savings left for a rainy day. It is sometimes suitable to call upon these funds in retirement, in order to mainitain your standard of living.

Do Nothing

If Equity Release is being used to maintain a standard of living as opposed to producing funds in order to survive, then perhaps it may be better to do nothing at all. By doing this you incur no costs, and leave the maximum amount of inheritance available from your property to your beneficiaries.

Claim State Benefits

There are many State Benefits available to certain individuals in retirement and it may be better to claim these than do Equity Release.

Other Points to Consider

Equity Release can affect the level of Pension Credit you receive from the state.
Equity Release can affect the level of Council Tax Benefit you receive from the state.
Equity Release can affect the health benefits available to you, such as free prescriptions.
Equity Release reduces the inheritance avavilable to your beneficiaries which can be an advantage or disadvantage, depending on the circumstances.