When people talk about reverse mortgages, they seem to think that they are more complicated than they actually are. Well I for one know that a reverse mortgage is simple because I am a financial adviser. So let’s look at the facts for the layman and see how hard it is for someone not qualified in the financial markets to understand the concept. Instead of a remortgage or something similar whereby you have to make regular monthly payments, a reverse mortgage requires no such repayments. Instead the reverse mortgage provider foregoes the repayments in exchange for a higher interest rate and the loan is then terminable on the death of the debtor.

What millions of cash-strapped pensioners could probably do in these economic crises is expect a godmother to swing her magic wand and banish away all your financial crises. But the fact remains that this is no fairly tale so, we always need a real life solution that can work better for us. By this time your investment portfolio might have just collapsed and inflation might be running at 9% as you are over 60’s. You are also running out of extra layers to prevent from freezing, so you may try out new ways to serve cheap meat. Just when you felt that things could never get more worse, you have to renovate your home. So the most obvious thought would be to make use of equity release as it would only add more cash to your daily expenses.