If you own a property, then you will be aware that you have a lot of money tied up in it, but no easy way of getting that money out. By the time you have paid off your mortgage, it is likely that you can no longer get a mortgage and why would you want to, now that you own your own house. However, sometimes it can be a struggle coping financially and you could really do with finding a way to use that money.
Equity release is a way that you can get some money out of the property that you own. There are different ways of doing it, with banks having different schemes that you can take advantage of. You can normally borrow a chunk or the full value of your property. This means that you will be able to have a chunk of money to spend. Some even allow you to take a regular income.
It is an expensive way to get money and may mean that you have less for your children to inherit. However, some people would like to see their children spending their inheritance before they die and so they release the equity in their home and distribute it so that they can watch their family enjoying it.
It can also be a good way to live a better quality of life. If you have worked all of your life so that you can pay off your mortgage and have the security of a house but find that your pension and savings do not give you a decent income when you are older, it may seem that you have wasted your time. You may decide to get some of that money back so that you can have a better quality of life at a time when you should be able to be enjoying yourself.
There are all sorts of reasons why a bit of extra money could be a great bonus for anyone and so by having the option to release some of the money from your home, you could find yourself having a much better retirement. It is better if you can have fun and enjoy yourself, have those holidays you have been putting off and being able to spoil your grand children. Much better than scrimping and saving for years and always worrying about money and how much you have.