Releasing cash from a property to bolster retirement funds is becoming increasingly common. House prices have boomed in the past decade, creating a potentially hefty windfall for those entering retirement who may be asset-rich but cash-poor.
Using equity release, a type of mortgage, homeowners released nearly £4 billion from their properties in 2020, said the Equity Release Council, a trade body. This was nearly double the £2.1 billion cashed out in 2016.
It can be a way to put kids and grandkids on the property ladder, help with home improvements or fund a dream retirement holiday — but there are pitfalls. Here is what you need to know.
What is equity release?
This type of mortgage lets you access the cash tied up in your