If you need extra funds, equity release isn’t your only option. There are several alternative solutions which may help you achieve what you need, and which is suitable for you depends on your personal circumstances.
For example, if you’re under the age of 55, and want to remortgage to release equity, you may want to consider a retirement interest-only mortgage. The loan is only repaid when you die or sell your house, but you need to continue making interest payments on the outstanding balance. Read more about these in our article How retirement interest-only mortgages work.
Remortgaging could also be an option, if you still have a mortgage to repay on your home. You may be able to extend the loan term, say, or borrow more to provide some extra cash. Alternatively, you may want to consider taking out an unsecured personal loan if you’re not looking to borrow a large amount and can afford to make regular payments.
If you need a large amount it may make sense to sell your property and move to a smaller house. However, fees such as stamp duty and estate agent fees can eat into your money, but you’ll receive the market value for your home and have a clear view of where you stand. If you’re thinking about downsizing, our article Five questions to ask yourself if you’re considering downsizing your home may help you to work out whether this is the right decision for you. Read more about all these different options in our article Alternatives to equity release.