What Equity release essentially allows you to do is to release a tax-free lump-sum of cash or have a regular source of income which is locked into the equity of your home. This equity can be a brilliant option for someone who hasn’t saved much money into a pension and is looking for some additional capital when they reach retirement.
In many cases you aren’t required to make payments on a monthly basis; the money is yours to spend however you may see fit. Whether it’s a boost for your retirement income, to helping out the family, finally making those long awaited home improvements or what about taking that trip you’ve always dreamed of taking.
Your home may be repossessed if you do not keep up repayments on your mortgage.
It’s worth bearing in mind that releasing equity from your property can, in fact, hinder your ability to claim benefits provided by the state and also lower the equity of your home.