Best Financial Advisors in Worthing

Downsizing vs. equity release: the pros and cons? For many people, their home is their most valuable asset. While it is good to have a valuable property, it can also leave homeowners in the situation where they would like to access some of the money tied up in their home to fund them into their retirement. In this situation, homeowners have two main options. They can either choose to downsize by selling their property and buying a less expensive home, or they can opt for equity release. Equity release comes in two forms: the lifetime mortgage and the home reversion plan. A lifetime mortgage involves taking out a mortgage secured with your property. A home reversion plan involves selling all or part of your home in return for regular payments or a lump sum. Both downsizing and equity release have a range of potential benefits and drawbacks depending on the specifics of your circumstances and what you are looking for. In this blog, we look the pros and cons of downsizing and equity release to help you understand which one might be right for you.