If you have paid most or all of your existing mortgage, you may want to consider a capital release plan.
Equity Releasecan provide you with a large sum of money to spend while still allowing you to continue living in your home. It can be particularly useful to cover large expenses later in life, such as long-term care. A capital release mortgage involves a lender giving you cash in exchange for a portion of the proceeds from the sale of your property later on.
But unlike a traditional mortgage, which you pay within a certain period of time, a capital release loan is not settled until you leave your home. Equity release is a type of loan that allows older borrowers to access some of the money tied up in their property. There are different types, such as a life mortgage or a home reversal plan. The amount you can borrow will depend on your age, the lender, and the value of your property.
Releasing equity can provide a useful way for older homeowners to access the equity accumulated on their property. It won't be right for everyone, but under the right circumstances, the capital release could be used to supplement your pension income or provide a lump sum, all while you live in your home. Capital release refers to a range of products that allow you to access capital (cash) immobilized in your home if it is older. You can accept the money you release as a lump sum or, in several smaller amounts, or as a combination of both.
Releasing capital may be a good idea for seniors who want to earn some extra money during retirement. Releasing capital can help you make improvements to your home, pay for care costs, help a loved one who is struggling financially, or pay other debts.