Equity release can be seen as one of the only ways to supplement your income when you approach or are in retirement. Equity release consists of entering into an agreement with a bank to take out a loan secured against your house. Unlike normal mortgages the bank then lets the interest accrue (roll up) rather than the householder pay it on a monthly basis. The loan is repaid to the bank once the homeowner dies and anything left is then passed onto the beneficiaries of the estate. Until recently equity release has only been available to the over sixty five. However this week a few lenders have drop the age at which you can apply for an equity release scheme. You can now enter into a equity release scheme from the age of fifty five, however the amount you can borrow will be much reduced. From last week two lenders are offering equity release to people aged from fifty five. The maximum advance however is reduced to 35% of the property’s value at the start of the scheme. The lenders claim that they have reduced the term to help those who have retired early or those who wish to give […]

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