Earn From Your Equity

With interest rates set by the Bank Of England at the lowest rates they have been in generations an individual might consider taking advantage of an equity release to help pay down some debt. Many people have access to substantial sums of money and do not realise it since the majority of home owners are not familiar with how to use an equity release to get the most out of life.

When a person buys a home they will usually need a mortgage in order to finance that purchase. As the home owner makes payments on this mortgage they are increasing their equity stake in the property. At the same instance as the value of properties rise so to does the amount of money a homeowner can take out of their property.

In order to figure out how much cash is available a person might need an equity release calculator to get an exact amount of what they can get. However it is possible to do a rough calculation. Take the total value of the house at its current fair market value, if a person does not know how to determine this they could refer to their property tax assessment provided by the government since that can provide some insight. Then subtract the total mortgage owing on the property and the balance left over is the cash that is available.

The proceeds of this product can be used to pay for anything that a person wants. They could use the money to pay for a much needed vacation or perhaps they want to buy another property or invest. A very common trend that is taking place is home owners are taking out cash from their home and using it to pay off their credit card debts. With credit card interest rates considerably higher than what a person would pay on their equity take out it makes good financial sense to pursue this facility.

Since this is a significant financial decision an individual should reach out to a qualified expert who can provide unbiased advice on what their best options would be. By getting professional advice a person will be able to locate the firms with the best possible terms and save a considerable amount of money in the process. Always ensure the person provided financial advice is licensed by the Financial Service Authority which regulates the banking industry and those offering banking products.