Equity Release ? The Answer to Retirement Debt?

It is estimated that the potential for outstanding mortgage debt at retirement over the next 25 years will be a staggering average of ?52,446, and that some 400,000 people will be affected. Entering retirement with increased debt burden is not something to look forward to, and maybe the solution is equity release. Like all financial products, it is essential you investigate thoroughly with a licensed professional?adviser?to make sure it is right for you, and also to understand what schemes are available.

The ?What Is Equity Release? Site? ? Answers to Your Retirement Finance Questions

At the aptly named What is equity release? Site, you can find everything you need to know about releasing the tied up equity in a property. Hundreds of thousands of people entering or approaching retirement are looking at ways and means to release the money tied up in their property. These reasons are myriad and are as unique as the person and the property.

At the What is equity release? Site, you can find the latest news about how equity release can be affected and information about the Equity release Council. Further information can be obtained about the activities of the Financial Services Authority, the government body that regulates the industry.

Like any financial services, product equity release schemes have reasons for and against opting in. Any individual or couple considering opting into one of the many schemes available should always seek the advice of a professional?adviser? one who is licensed to deal with such matters. The level of debt you may have at retirement and the equity store the property contains will both dictate the scheme you can enter.

From lender to lender, there are similar and yet vastly differing schemes which you can sign up to. Varying periods over which loans can be taken out combined with limits on the ratio of the loan to value will dictate which scheme is best suited to your personal circumstances.

You may be in a situation where you will have to sell your current home and downsize to something more manageable. On the other hand, you may be able to refinance and stay in your home for the foreseeable future. The sum of money you are likely to receive will be tax free; however, depending on your personal circumstances, the tax exemption may not apply and the advice of a suitably qualified professional should be sought regarding your tax affairs and how it might affect you.

Over recent years, pension pots have dwindled in value and the cost of living has been inexorably increasing, easily beating the value of savings. With interest rates for savers at their lowest ever, it is now effectively costing money just to keep it in a savings vehicle. Increasingly, equity release has been providing the solution to the shortfall, offering more and more retirees the potential of a more comfortable retirement forecast than was previously thought possible.

If you own property, are approaching or entering retirement, and the financial future looks anything less than bright, check out the What Is Equity Release? Site today to see how you could benefit from an equity release scheme.

Graham Green is a freelance writer and researcher for several finance related websites and is constantly researching the latest in news about mortgages, credit news, and general finance. He has regularly read with interest the information on the What Is Equity Release? Site.

Sam Payne is a well-acclaimed financial writer. He has been writing articles for a considerable period of time for easyfinance.com. She has been guiding people on housing finance, mortgages, reverse mortgages, affiliate marketing, home equity loans, and budgeting.

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Source: http://www.small-businessadvice.com/equity-release-the-answer-to-retirement-debt/

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