Alternatives to Equity Release
Members of the Equity Release Council
Alternatives to Equity Release checklist
Every customer should be aware of several alternatives to Equity Release. There could be other options available that could mean that Equity Release is not the right decision for you.
These include:
- It sounds like a simple alternative, but you could consider moving to a cheaper property and releasing cash that way. By downsizing to a smaller property, so you have funds remaining after the sale of your old property and purchase of your new one. These funds could be used as an alternative to Equity Release.
- Releasing funds from elsewhere. If you have Savings or Investments, is there an opportunity for these to be used instead? It may be that these funds are your 'rainy day ' funds, or you incur a penalty for withdrawing them so are not a viable alternative.
- Asking family for a loan. This could be repaid monthly or upon your death but his is often not possible as family are not in a position to lend you the money, or you may not feel comfortable asking them.
- Checking if you are eligible for a local authority loan, or benefits that you didn't know about. As part of our process, we will check your eligibility for benefits. Although these are not often available, it is certainly worth checking to ensure you are not missing out on any grants or entitlements.
-
Take in a lodger. This could provide valuable additional monthly income. Although this is an option to increase income, many over 55s do not feel comfortable with accepting a stranger into their home. It may increase income but the privacy that many enjoy may be lost.
So there are several alternatives to Equity Release but these all need to be considered carefully before making a final decision.