Should you cash in ON YOUR HOUSE?

Here's help deciding if equity release is the right move for you

- KAREN EVENNETT

The cost of living has risen, incomes are plateauing, savings are dwindling... is now the time for your biggest asset - your home - to start paying its way? Equity release - a way to live in your home while accessing some of the money in its value - may seem like a great idea, but it hasn't always had the best reputation.

In the past, some lenders have made it difficult for borrowers to treat their homes as their own. Today's heavily regulated market means this no longer applies, and loans are more popular, says Martin Wade, adviser and director of specialist company Access Equity Release.

Counting the cost

'At 55, you may be able to borrow up to 20% of your home's value,' says Martin. 'This rises to a possible 50% for borrowers in their 80s.'

These loans are designed to be long-term, often not being repaid (along with the accumulated interest) until the house is sold after the borrower has died or moved into full-time residential care.