Going on a holiday can be expensive. Raising the money to go on a holiday can be challenging. With equity release, you will not only be able to go on vacation, but you can do so worry-free.
Many pensioners who have worked until age 65 have not been able to go on any holidays before, but with equity release, it is possible and straightforward too.
Let’s examine how much does equity release cost and how it benefits you.
What’s Equity Release and How Does It Work?
An equity release plan is a loan you take out against the value of your home.
According to John Lawson, an expert in equity release, You can take up to 60% of the property’s value as a lump sum or monthly instalments.
There are no limits to what you can do with the money either.
How Do I Apply for Equity Release?
To apply for equity release, you will need to go through the following checklist:
- Home location: You need to be a permanent resident of the UK
- Condition of your home: The better the state of your home, the more money you can get
- Your age: The youngest member to apply for equity release has to be at least 55
- How much money will you need: Your property needs to be a minimum of £70000 of which you will be able to get between 31 and 60% in equity release.
How Can Equity Release Fund My Vacation?
Equity release can fund your vacation by allowing you to travel without the fear of running out of money on a credit card.
Most people travel with a budget set by their bank limit on their credit cards, but having access to a large sum of cash can make it easier to travel.
Using equity release to travel is also a great way to look at properties overseas that you may want to invest in.
Is Equity Release a Good Way to Raise Cash?
Yes, equity release is an excellent way to raise cash.
It gives you the peace of mind that you do not have to pay the money back immediately and can do what you need to while living in your home.
How Can I Release Equity in My Home if I’m 55?
You can release equity in your home when you are 55 simply by getting your property evaluated and hiring a broker to assist you with applying for equity release.
You will also be able to release equity with your partner if you are both over the age of 55 and at least one of you is a permanent resident of the UK.
What’s the Average Equity Release Rate for a Mortgage?
The average rate for equity release for a mortgage is between 3 – 5%.
Some places charge as little as 2.75%, depending on the interest rates.
Common Questions
Can I Use Equity Release to Fund a Property Purchase Abroad
Yes, you can use your equity release to fund a property abroad.
As long as you spend at least 6 months of the year in the UK and you are a permanent UK resident, it is possible to invest in overseas property.
How Many People Are Releasing Equity to Fund Their Retirement Ambitions?
One in 5 people is using equity releases to fund their retirement.
They spend the money on home renovations, educational costs or overseas holidays.
Conclusion
Many pensioners are taking advantage of using equity release to travel.
An average salary doesn’t always make that possible, and so an equity release can be used to fund your entire holiday.
It is always advised to use the services of a financial advisor when making big decisions about spending your equity release, so talk to one before releasing equity to see what you qualify for and how you can use it for your vacation.
