If you are retired or are nearing retirement age, you may be a little worried about how you are going to manage on a pension – let's face it, it is not a princely sum and unless you are very frugal it is not going to be enough to live on comfortably.
One option considered by many is equity release which basically means taking out a loan against your house. This is then paid off, with interest, when the house is sold after your death. It can be a good way of raising money to enjoy life, after so many years of saving to pay off the mortgage.
This type of scheme is not for everyone, and some people prefer it is the last resort as they want to leave their house to their children. But most children would agree that they would prefer mum and dad to enjoy the last twenty or thirty years of their life than go without in order to leave them a house and they are happy to stand on their own two feet in life.
You really need to do the sums to see if this is for you or not – how much the house is worth, how much it will raise and how much interest would be payable, but it is an option to consider to be able to really let your hair down in retirement.
If you are thinking of pursuing this route, it is prudent to talk it over with a professional. Any finance expert or financial advisor will be able to go over all the details and will help you decide whether this is a financially viable option for you as an individual (or couple).
