Travelling abroad can be a great experience when you have the money. Many people are taking out equity release plans to fund their travelling. With the right equity release plan, you will be able to travel and do so safely.
There is no fear of running out of funds with a credit card, and you can plan accordingly as you travel. Some are using their equity release to purchase holiday homes. Let’s look at the pros of equity release and how equity release can support your travelling experience.
What’s Equity Release and How Does It Work?
Equity release plans allow you to release cash from your property while you still own it.
It is essentially like a loan because you can get a lump sum payout, or you can get monthly income instalments paid to you.
According to our equity release expert, Jason Stubbs, The money can be used for several things as there are no restrictions on what you can spend your money on.
Can I Use Equity Release to Fund a Property Purchase Abroad?
Yes, you can use equity release to purchase a property overseas.
As long as you are a UK resident and spend at least six months of the year in your UK house, you will be able to purchase a holiday home.
What Are the Best Equity Release Plans?
There are 2 equity release plans, namely a lifetime mortgage and a home reversion plan.
Let’s take a look at what they are and how they work:
- Lifetime mortgages allow the homeowner to live in the house while repaying their equity release.
If you die before the money has been paid in full, your beneficiaries will have the choice to sell the home to repay it, or they could pay it back with other financial means.
Once the equity release plan has been paid, you can reapply for equity or sell your property.
- Home reversion plans allow you to sell a percentage of your home to the lender and still live in your home.
When you die, the lender will sell your home, take the sale’s percentage in cash, and leave the rest to your beneficiaries if there is anything left.
Who’s Eligible for Equity Release?
Anyone who is 55 and older will be eligible for equity release.
As long as your credit record is clear and you qualify for the equity release loan, you will be able to release equity.
What Are the Pros of Equity Release?
The pros of equity release are that there are no limits on the things you can spend the money on.
You can choose to go on an overseas holiday or use the money to fund your children’s education.
Many people even use the money to renovate their homes or invest in other properties.
There is no limit.
Common Questions
Is There a Way to Raise Cash From Equity Release
Yes, there is a way to raise money through equity release.
You can choose to do so with one of the equity release plans.
What Types of Equity Release Are Available in the UK?
There are 2 main equity release options to consider.
To find the best one for yourself, you would need to consult with a financial advisor.
Conclusion
Equity release to help you travel can be one of the most lucrative ways to travel.
You will be able to travel worry-free and not be concerned about running out of credit on your credit cards or running out of savings.
Equity release for travelling will also allow you to invest in property overseas if you wish to do so.
It is always best to consult with a financial advisor before you use your equity release for travelling and to book your travelling with a reputable company to ensure that you can do so safely.
