Many pensioners find themselves in the “asset rich, cash poor” situation and it is not easy.

For many British people, their home is their life and their pride, and it is not always easy even to think about the necessity to sell it.

We get attached to our homes, they are full of memories and moving to another area can cause a lot of disruption.

Equity release mortgages were created especially for people who need cash to supplement their retirement, but don’t want to sell their house and move.

Home equity release is a type of a mortgage, which allows home owners to “unlock” the equity in (of) their property.

There are many equity release schemes available on the market; it is now possible to have a lump-sum, arrange regular cash drawdowns or a combination of both.

Unlike the normal residential mortgage, house equity release doesn’t require making any monthly payments as mortgage is expected to be repaid on death or when owners will move into long-term care, but in some cases applicants may be able to pay interest if they wish to.

The amount of money borrowers can borrow depends on their age and a valuation of the property. By using an equity release calculator, it is possible to calculate available options.

It is not always easy to decide what will be the best equity release, as the most important aspect in the decision making processes will be to find the most suitable product for your situation (circumstances). Home equity release products are normally considered to be long term products and are not very flexible. For people who are not entirely sure about their long –term plans or how releasing equity can affect their financial situation or inheritance, it is important to consider taking equity release advice and discussing the matter with the immediate members of the family.