Equity release as pension plan

Nationwide now allows you to use your house as a cash machine for your retirement. Ruth Jackson explains how it works.

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The idea of using your house as a cash machine with which to fund your retirement has gone mainstream, with the announcement that Nationwide is the first major mortgage lender to offer it.

The building society's new lifetime mortgage allows homeowners aged between 55 and 85 to take out an interest-only loan against their house. You don't make any monthly repayments; instead, the loan is repaid in full when you die and the house is sold, or you sell your house to move into care.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.