Could Equity Release help ease the cost of living crisis?

2022 has been a turbulent year for finances.  Inflation rose to over 10% in September reaching a 40 year high.  Various factors including energy prices and food costs are to blame, partly attributed to the ongoing war in Ukraine.  The fact is that the pound in our pocket no longer stretches as far as it did and many are facing increasingly difficult decisions when it comes to affordability and expenditure.

Could housing wealth provide the answer?

For many their largest asset is their home, perhaps having owned a property for several decades.  Over this time the value of property is likely to have risen dramatically with the increase in wealth leading to circumstances where homeowners are ‘asset rich but cash poor’.  Over 55’s can be eligible to free up a proportion of this property wealth and release a tax free lump sum.  There is a potential to balance out a drop in disposable income by using the cash tied up in property and bringing it into the financial planning process.

Who could equity release be right for?

There are lots of factors to consider and Equity Release is not right for everyone.  Elmham Financial offer advice on Lifetime Mortgages which is a type of Equity Release.   They are available to homeowners aged 55 or over. It is important to speak to a qualified adviser in order to understand the benefits and risks and to look at individual circumstances in order to explore the wider options.  If you’d like to have a chat with us please use the ‘Contact Us’ section and our dedicated Equity Release adviser, Vicky Hasdell will get in touch to answer any questions you may have.

We offer local, independent advice free of charge.