Alternatives to Equity Release
If you’re looking for ways to boost your income later in life, equity release products are becoming an increasingly popular option. But before you go ahead with this option, it is worth considering the pros and cons described above and exploring the differences between the alternatives.
Here are 10 other forms of assistance you may want to consider:
1. Downsizing
When the kids have grown up and moved out, you might have more space in your home than you need. Selling your home and moving to a smaller, less expensive place of residence can generate a lump sum of money.
While downsizing is cheaper and more flexible than some other methods, it comes with some disadvantages. If home prices are falling at the time you are selling your home, you might end up with less money than you hoped. You will also need to pay an estate agent.
Additionally, it could take some time to find a buyer and a good place to spend your golden years. The fact is, downsizing can be costly and have substantial emotional impacts.
These include moving costs, estate agent’s fees, legal fees, stamp duty, buying new furniture, redecorating to suit your tastes, leaving your long-standing family home and losing support from family and friends in the community.
2. Credit cards
If you only need a relatively small amount but quickly, then a credit card may be a great option. Low interest rates and a battle for clients between credit card providers mean there are great deals available on the market.
For example, the Lloyd Bank Platinum Low Rate credit card offers an interest rate as low as 6.45% depending on your circumstances. Additionally, it has an annual fee of £0, and when you make a balance transfer within the first 90 days of opening an account, you get a no-fee deal.
The best option when opting for credit cards is to go for those with a low interest rate; however, this option is more suitable for borrowing smaller amounts of money.