What is the Right Move for Your Future
The decision of what to do with your home equity is not one that should be made lightly. Whether you decide to use it for retirement or release it as a cash lump sum, there are many factors to consider before you make your final decision. Equity release mortgages can help by providing an alternative way to access the value in your property, but they come with risks and drawbacks too. The conveyancing quote experts will discuss some pros and cons of both types of mortgage – traditional and equity release- so that you can make the best choice for your future!
The first thing to consider is your current lifestyle and spending habits. If you are living a comfortable life now, then chances are that your needs will remain the same in retirement. This means that you do not need to release all of your equity as one lump sum; instead it may be better to keep some for emergencies or other financial commitments.
If this sounds like an option for you – keeping some money back – there still comes the question of what type of mortgage would suit these circumstances best: Traditional Mortgage? Or Equity Release?
The traditional route has several benefits if planned correctly: It’s secure because you own 100% outright on the home once fully repaid (giving lenders peace of mind). You can leave extra funds to children/grandchildren tax-free after your death.
On the other hand, equity release could give you the chance to access money if needed for things like holidays or medical expenses without taking on extra debt or selling assets. It also means that your family can remain living in their home should they choose to – regardless of whether or not it is paid off fully by then! There are therefore benefits and drawbacks with both types of mortgage; traditional mortgages can be secure but harder to plan around future needs, while equity release provides more flexibility but brings riskier borrowing into play. The best type will depend upon personal circumstances so always do plenty of research before signing any financial agreement!