Equity release schemes are legitimate and beneficial ways for people to borrow money.
That said, however, they are not for everyone, which means it is important that homeowners research the pros and cons of equity release, alongside the alternatives available.
If your children have grown older and you have more space in your home, one alternative could be to move to a smaller property to help free up cash.
Consider downsizing your home if:
Although downsizing could be a legitimate option for you, there are many fees and taxes that you must consider, including estate agent fees, legal fees, moving costs, and stamp duty.
If you are struggling to stay within your means, before considering any type of loan, you should consider applying a new budget to fit your lifestyle.
Review your outgoings and evaluate where you can make cuts or if you can change electricity, gas, or internet provider to get a better deal.
Homeowners throughout the UK are beginning to enjoy the benefits of letting out a bedroom in their home. With the government’s Rent a Room Scheme, homeowners can earn up to £7,500 per year — tax-free.
That said, there are a number of responsibilities that you must fulfil, so ensure to fully research the option before deciding to rent a room in your property.
If you want to know more about whether an equity release loan is right for you, or if you’re considering an alternative form of lending contact Freedom Advice today for an initial free consultation.
Freedom Advice LLP does not advise on Home Reversion schemes and only on Lifetime Mortgages