Could £85,000 help you in re­tire­ment?

Daily Express - - DAY & NIGHT -

I ncreas­ingly re­tirees are look­ing at their homes in a new light as a way to boost their fi­nances. Ac­cord­ing to Key Re­tire­ment, in 2017 their cus­tomers had on av­er­age £85,810 avail­able to re­lease. A life­time mort­gage, the most pop­u­lar type of eq­uity re­lease plan, al­lows home­own­ers aged be­tween 55 and 95 to ac­cess a tax-free cash lump sum with­out hav­ing to move house and down­size. There are typ­i­cally no monthly re­pay­ments to make as the loan, plus roll up in­ter­est, is re­paid when the plan comes to an end.

How can I spend my money?

You can spend your money how­ever you like, although any ex­ist­ing mort­gage would need to be re­paid first. Eq­uity re­lease will re­duce the value of your es­tate and may af­fect your en­ti­tle­ment to means-tested ben­e­fits. Re­mem­ber a life­time mort­gage is se­cured against your home.

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