The festive season can be magical. But honestly, we are speaking to so many of our clients, and the cost of living is really weighing on everyone’s mind. Christmas is a time to think of family, and maybe equity release is something you can consider. Our role as your advisor is to try to help where we can.
If you’re a homeowner over 55, you might have heard of equity release. But it’s important to understand how it works and when it makes sense. Used wisely, you may be able to help your children or grandchildren with a house deposit, make those important home renovations, or take the trip of a lifetime.
Equity release lets you unlock some of the value tied up in your property while continuing to live there. You can usually take the money as a lump sum, a regular income, or a mix of both. The most common form is a lifetime mortgage, where the loan is repaid (with interest) when your home is sold. Usually, after you move into care or pass away.
Here are some ways people use equity release during the festive season:
Helping family or grandkids – Many clients use it to gift money to loved ones, whether that’s help with a home deposit or school fees.
- Home improvements before the holidays – From a new kitchen to guest-room renovations, equity release can help make your home ready for family visits.
- Funding experiences – Maybe it’s a family trip, a reunion, or that bucket-list getaway you’ve always wanted. Some clients use equity release to create lasting memories rather than just covering bills.
A Word of Caution
While it can be a great tool, equity release isn’t free money. It reduces the value of your estate and may affect your entitlement to means-tested benefits. Interest builds up over time, so it’s important to understand the long-term implications before deciding. That’s why professional advice is essential – to make sure it’s the right move for you and that you only release what you actually need.
Equity release can be a flexible way to enjoy a more relaxed Christmas or to share the joy by helping family. But it should always be done thoughtfully.
Suppose you’re curious about how it might work for you. Or want to talk through your options, give me a call today, and I’ll go through the details with you. I can help you understand how much you could release, what it would cost, and whether it suits your long-term plans.
Enjoy the holidays – and let’s make sure your finances stay merry and bright too.
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
SPEAK TO AN ADVISER