Releasing cash from your home can be helpful in several ways. From paying off debts to enjoying your retirement, releasing money from your property is a great way to get the most from your investment.
The average amount of cash released usually sits between 20% – 50% of your property’s equity, but this depends on your circumstances and lender. Things that would come into account include your income, future plans and age.
Here we look at ways to use cash released from your home’s equity.
If you plan on using your released cash to pay off debts, be sure to pay off the highest interest debts first. This is an excellent way of minimising your debts and reducing repayments.
Renovations and Home Improvements
Renovations and home improvements are fantastic and hugely beneficial. They often boost the value of your home significantly and can make your home more welcoming and spacious.
Retirement doesn’t offer a high income for everyone, and releasing cash from your home could give you the financial top-up you need to enjoy your retirement in the way that suits you.
Holidays or Travel
A popular reason for releasing equity cash is for a holiday or a stint of travelling. Why not enjoy your money seeing parts of the world you are yet to experience?
Family Savings or Inheritance
Perhaps you wish to start or add to an ISA or savings account for your children or grandchildren. Or maybe you want to give a cash gift to a family member or prepare for the cost of inheritance tax. Even a family wedding or holiday could be a good reason to release some cash from your home.
Medical or Care Home Costs
Unfortunately, we can not foresee what is waiting for us down the road regarding our mental and physical health. Unexpected medical bills due to emergency private care or care home costs can cause quite a dent in finances. Releasing cash for health care purposes can help make your later years as healthy and safe as possible.
Whatever the reason, releasing equity money from your home is a sound financial option for many homeowners. Speak to a specialist, such as Equity Release Brokers, to ensure you get the right advice for you and your money.
For further information, contact our helpful team on 01277 620083