Enjoying a financially secure and comfortable retirement is something we all want. Pension schemes and annuities are all about providing an income after you have stopped working. But sometimes, this income is not enough. What do you do then? This is where equity release finance comes in.

Equity release means releasing a part of the wealth tied into your property for use. This money can be taken at a lump sum or it can be taken as regular instalments in addition to your other income. This money is not taxable, and interest is not payable in your lifetime.

However, equity release is not as simple as that. For one, compound interest is payable on the money that you get. This means that interest is payable on the interest that is accrued. This means the amount you owe can grow quite big quite quickly.

By releasing equity from your home, you are reducing the value of your home. The money that is owed to the financial company has to be deducted from the sale price of the property. This means that any beneficiaries that may inherit the property after you may be left with little or nothing!

This is the reason why equity release finance should be considered very carefully before making any decision. It can clearly be a good option for some people in specific situations. It is definitely not something to be taken lightly. Always seek independent advice!