Equity Release Uses

Note: All equity release inquiries are passed to a third-party equity release specialist company.

Funds generated by way of an equity release can be used for any legal purpose. In many instances, homeowners considering equity release do not have a single expense or investment in mind. They simply want to tap into some, or all, of the equity tied up in their homes in order to supplement their income and improve their lifestyle.

By contrast, others evaluate equity release options with a specific goal in mind. From urgent expenses to necessary investments to well-deserved indulgences, equity release opens the door to limitless options.

Uses for Equity Release

Here are just a few of the most common uses for equity release in the United Kingdom:

Home improvements

For some, tapping into the equity they have tied up in their home to fund major home improvements is something of a no-brainer. From interior decorating to exterior styling to major renovations and extensions, equity release makes it quick and easy to raise funds for extensive home improvements.

A bonus of funding home improvements with equity release is the likelihood of increasing the value of your property in the process.

Covering home care costs

It is understandable that for many elderly homeowners, the prospect of moving into residential care is unappealing at best. Private home care can be the ideal alternative option, though it tends to be extremely expensive to fund long-term.

With equity release, elderly homeowners could free up the money they have tied up in their homes without having to move out. This could mean easily covering the costs of the in-home care required for as long as it is necessary.

Mobility equipment

In a similar vein, many equity release customers set their sights on mobility equipment and general lifestyle aids to help them get around. Examples of this include mobility scooters, stairlifts, and adaptations around the home to enhance mobility and preserve independence.

As these devices and property improvements can be quite expensive, releasing equity to cover the costs is a popular option.

Clearing the remaining mortgage debt

Equity release schemes can also provide access to the funds needed to completely clear existing mortgage debt, after which you are no longer liable for any monthly repayments, and your free money is then yours to do with as you wish, all with the guarantee of being able to continue living in your home until you die, move into long-term residential care, or decide to sell.

If you are struggling to keep up with your remaining repayments, using equity release to clear mortgage debt is a good way of reducing outgoings.

Personal indulgences

There is nothing to say you cannot (or should not) use the funds you raise to treat yourself. Designer clothes, jewellery, new technology for the home, or perhaps even a new car—things that you would otherwise not be able to afford under any circumstances

Investment opportunities

Research suggests there are plenty of equity release borrowers who set their sights on potentially lucrative investments, such as funding new business ideas or buying shares. With the sole objective of turning their money into even more money, the equity tied up in their home is used to make the most of attractive investment opportunities.

Releasing equity with the intention of putting the money into investments is something to be done under experienced professional advice only. Always seek independent financial advice from a qualified advisor before risking your equity on investments.

Holidays and excursions

If there is a part of the world you would love the opportunity to explore, why not take the trip of your dreams? Equity release can provide you with the cash you need to fund all the holidays and excursions you would otherwise have been unable to afford or upgrade to improve the experience.

Independent expert advice

It is essential to seek independent expert advice before entering an equity release scheme, so always consult a CERER-qualified advisor. Though beneficial in many cases, equity release is not for everyone and should be considered strictly under advisement.

For more information or to discuss your eligibility for equity release in more detail, book your obligation-free consultation with a member of the team today.