Is downsizing worth £50 extra per week?
To generate just £50 extra income per week1, a homeowner would need to downsize to a £129,596 property, a significant drop from the national average home1.
Although downsizing has its place amongst retirement planning techniques, for those who don’t want to move home the flexibilities of government regulated equity release plans are presenting a viable alternative.
Rising in popularity by 49% since 20121, Lifetime Mortgages offer homeowners the flexibility to borrow against their home without the usual lending clauses as you cannot lose your home and you do not have to make repayments during your lifetime.
In fact, plans are portable so can move home with you should you want to later.
Mr Jones downsized to generate an extra £200 of income per month.
Mr Allen, however, chose a Lifetime Mortgage to access his property wealth so he could stay in his current home.
With his release equity, Mr Allen cleared his existing mortgage saving £514 per month2 and then refurbished the kitchen and garden, creating a comfortable home for the rest of his retirement.
Clever, in-built, money saving options such as reserving a cash amount for later that grows no interest until its withdrawn, mean you can plan ahead without worry for what the future holds. Also, with interest rates fixed for life, you know exactly how much your borrowing will cost.
Reader’s Digest have teamed up with Retiredom, a leading equity release specialist to produce a guide to equity release. To claim your free copy, simply complete the calculator below or freephone 0808 231 1968.
Equity Release Information
The Reader’s Digest Equity Release service is provided by Retiredom, a trading style of Responsible Life, which is authorised and regulated by the Financial Conduct Authority.
This is a lifetime mortgage. A lifetime mortgage may reduce the value of your estate and can affect your entitlement to means-tested state benefits. To understand the features and risks, ask for a Personalised Illustration.
Requesting a calculation and guide are free and without obligation. Unless you decide to go ahead with a plan, our service is free of charge as we only charge a fee if and when a plan completes. The fee is typically 1.6% of the initial amount released.
1 Responsible Life Ltd Analysis