7 Key Alternatives to Equity Release

If you’re thinking about equity release but you aren’t sure if it’s for you, then there are a number of alternatives you could consider. You won’t qualify for all of them, and they may not be suitable, but it’s worth running through the available options before you decide.

What Are the Key Alternatives to Equity Release?

There are various alternative options to equity release if you need more money in retirement. Downsizing or relocating to an area with cheaper homes is one of the most popular, along with returning to work.

Continue reading to get the full details of the alternatives available.

Looking for other information on Equity Release? This guide has info on 'What are the alternatives to Equity Release?' We have also writen extensively about:

• - How to I start with Equity Release?
• - Equity Release is perfect if you have retired recently
• - Equity Release is perfect if you need a cash lump sum
• - Equity Release is perfect if you need to help your family out financially

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Equity Release Alternative 1: Using Your Other Savings or Investments

If you’d prefer to keep your home equity to pass on to your loved ones, and you have other savings or investments, then cashing in those could be preferential.

It depends on whether those savings or investments have a likelihood of maturing, or whether there’s no long-term gain to keeping them and sacrificing your home equity, on whether this is right for you.

Equity Release Alternative 2: Downsizing or Relocating

Many people looking to free up some cash in retirement either downsize their home or move to an area where house prices are lower. By selling your home and buying one that’s cheaper, you could end up with a decent lump sum, although selling costs and fees need to be considered.

If you’ve had children who’ve moved out and you have empty rooms then downsizing may be ideal, but if you love your home and don’t want to leave it then this option isn’t for you.

Equity Release Alternative 3: Letting Out a Room to a Tenant

If you do have spare bedrooms in your home now that your children have grown up, and you don’t want to leave it, consider renting one of those rooms out to a tenant. Regular rental income can help boost your retirement coffers, but you’ll need to make sure it’s something you’re comfortable with – if you like your privacy, this might not be something you want to consider.

The government have a scheme for renting a spare room that is certainly worth reading.

Equity Release Alternative 4: Returning to Work

Once you’ve retired, there’s nothing to stop you from returning to work if you need more money to supplement your pension. You can take up a lighter schedule in a less stressful role, and for many it’s a good way to keep busy. But if you’ve been dreaming of a more relaxed retirement then this might not suit your vision.

Equity Release Alternative 5: Support From Friends or Relatives

Most people are uncomfortable asking for help, but friends and relatives may be willing to gift you money if you need it to live during retirement. Of course, they may not be in a position to give it, but if they are then many people would rather you asked than suffered in silence.

Equity Release Alternative 6: Looking Into Home Improvement Grants

If the reason you’re looking for an equity release loan is to do up your home, then it’s worth investigating whether you’re eligible for a Local Authority home improvement grant. This could be a way of making your house more comfortable to live in, without taking out debt.

Equity Release Alternative 7: Access to All Entitled Benefits

Your financial adviser, when you start the process of applying for equity release, will check to make sure you’re getting all the benefits you’re entitled to. You might be missing out on funds that you need simply because you’ve never applied.

For a lot of people, these alternatives may not be suitable, which is why equity release is so popular and continues to grow. If you want to know more about equity release then you can read our guides.

How Can Money Savings Advice Help You With Releasing Equity?

Here at Money Savings Advice, we have partnered with some of the UK’s leading Equity Release brokers. They have already helped thousands of people get the best Equity Release deal and they can do the same for you.

Choosing an independent adviser means they won’t recommend a scheme unless they are sure it is in your best interests. Their advice is also regulated by the FCA, which gives you an additional layer of protection.

If you would like to speak to one of these brokers who can provide you with a ‘whole market quote’ then click on the below and answer the very simple questions.