Could equity release give you a welcome cash boost?

They are turning to equity release as a way to help out loved ones, travel or carry out home improvements.

Many are making modifications and changes to their home, not only for a comfier retirement but also for health reasons.

So,what does an equity release scheme allow you to do? Essentially, it releases tax-free cash from your home to spend as you wish, with typically no monthly repayments to make.

A climate of low savings rates, poor pension payouts and inflation means equity release is becoming a popular option for older people on fixed incomes who need a cash boost.

Many over 55s who take this route argue that there is no point sitting on wealth and struggling financially when they can make equity work for them now, when it’s needed.

With property prices rising by four per cent in Scotland and record-low interest rates now available for equity release plans, there has never been a better time for homeowners to make the most of their property wealth.

According to new analysis from leading over-55s finance specialists Key Retirement, equity release plans have boosted Scottish property owners’ retirement finances by more than £86million in the last year alone.

Dean Mirfin, technical director at Key Retirement, said: “If you’re considering equity release to pay for home improvements or for other reasons, you can speak to one of our advisers either over the phone or face-toface.

“They will give you no-obligation independent advice about whether equity release is the best option for you, whether your entitlement to state benefits may be affected and how the value of your estate will be reduced.”

Equity release is available to those aged between 55 and 95 who own a property worth at least £70,000.

It allows tax-free cash lump sums to be taken from the value of the owners’ properties.