Can Being Furloughed Have a Negative Impact on an Equity Release Loan?

If you’ve lost your job for any reason and you need money to help you survive, and you’re aged 55 or over, then equity release could be a helping hand.

Equity Release Loans Are Secured Against Your Home

Equity release schemes are available to anyone aged 55 or over with equity tied up in their home, even if you have been furloughed or lost your job. You can free up cash without the need to make repayments until you die or move into full-time care.

So, if you’ve suddenly lost your job, they can be tempting.

Read on to see how equity release could help you.

Looking for other information on Equity Release? This guide has info on 'Equity Release is perfect if you have retired recently' We have also writen extensively about:

• - How to I start with Equity Release?
• - What are the alternatives to Equity Release?
• - Equity Release is perfect if you need a cash lump sum
• - Equity Release is perfect if you need to help your family out financially

We update all our guides regularly. If you are researching Equity Release and we haven't got an exact guide that helps you, keep coming back as we update daily.

Equity Release and Furloughing

If you’ve been furloughed from your job and you aren’t having your salary topped up, you could be staring at months with a reduced income covered by the government, which may not be enough to cover your bills and expenses.

With equity release, you could either take a cash lump sum now to the bank and cover costs until you wait to return to your role full-time, or you could take a drawdown lifetime mortgage.

This only charges interest on the money you actively withdraw, rather than just presenting you with a cash sum. You could draw down just the money you needed to top up your salary, and then once you return you could either use the remainder as a backup plan, improve your home, or leave it untouched so that more of your equity is protected.

Equity Release and Job Loss

When you lose your job unexpectedly, you might be facing troubling financial times. Particularly if you’re over the age of 55 when you’d be entitled to equity release loans, you might be daunted by a potential change in your career.

Equity release could instead allow you more time to re-train, without worrying about finances, or let you spend time thinking about what you want to do. You could live off the money or use it to take advantage of the unexpected free time – either to do up your home or take that dream holiday.

Equity Release and Early Retirement

You may be forced into early retirement. If you had plans to continue working well beyond your 55^th birthday but your employers had other ideas, then equity release could be an option.

Again, you could use it to re-train or to help you find other ways to occupy your time, such as investing in a second home to get a foothold in property development. Or, it may simply be a way of topping up your pension income.

Whatever your circumstances, when you lose your job there’s a financial hole that you’ll want to fill and equity release could be ideal. Keep reading our website to get fully up to speed on the options available

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.