According to recent data, almost half (48%) of UK adults worry about money at least once a week. Perhaps equally concerning is that 55% of people do not feel comfortable talking about their financial concerns. These statistics point to a worrying trend across the nation, and there’s no doubt that money troubles can have a significant impact on a person’s mental wellbeing. But what can be done to improve the situation?
If you’re a homeowner and you have concerns about your finances, equity release could be an option worth exploring. It’s a route that plenty have taken in the past, and equity release specialists, Key Advice have conducted a comprehensive study looking into how those customers feel about the process and what it has done for them.
What were the key findings of the survey?
The survey reported that:
- Two-thirds felt equity release had made a major contribution to their quality of life.
- More than nine in 10 (92%) believed they had been properly advised regarding the product and how it worked.
- Just over a third (35%) said it had improved their standard of living.
- By contrast, only 10% felt it had not improved that standard.
But what exactly is equity release, and how does it work?
What is equity release?
It’s a way for you to release some of the value tied up in your home, without having to sell and move elsewhere. It only applies to homeowners who are least 55 years old and have a property worth a minimum of £70,000.
You can take out the equity as one lump sum, in several smaller amounts, or as a combination of the two. You’ll pay interest on the money that you release, and you can choose to make monthly repayments if you wish. Some plans come with a no negative equity guarantee, which means you’ll never owe more than your home is worth and any debts won’t be taken on by your loved ones when you pass away and the plan comes to an end.
How can financial concerns impact your wellbeing?
Half of respondents to the Key Advice survey said that equity release had eased their day-to-day financial concerns, which can have a severely detrimental effect on your mental health. For example, you may suffer from insomnia, depression and anxiety, all of which have the added potential of taking a toll on your physical wellbeing.
It can also put a huge strain on your personal relationships, and if you are struggling with financial concerns then the NHS has a wealth of information on how you can cope with such a difficult situation.