If you wish to free up tax free cash that is currently tied up in your home, you may be considering equity release.
As the name suggests, ‘equity’, using part of the value of your home, is ‘released’ to you as a cash payment – either as a lump sum or as regular income. It can be an attractive option if you aren’t keen to move house or make monthly interest payments on a second mortgage.
Equity release works rather like a reverse mortgage. It provides cash now to spend as you wish, with the interest on the money borrowed against the value of your home only repaid after you’ve died or moved into long term care.