Equity Release Latest News

Archive for August, 2010

Three Factors To Consider Concerning An Equity Release Mortgage

Tuesday, August 31st, 2010

Some people will be unsure how to begin the equity release procedure. Anxiety with proceeding with this form of borrowing could result in never receiving benefits from this excellent form of lifetime mortgage. Similarly, they also fail to consider certain important points which form an integral part of equity release schemes.

 

Equity release is basically the method of utilising the current value of your property to get a steady supply of cash. The cash may be received in a lump sum or in instalments.

 

Age is usually the major decisive factor while deciding the percentage value of the home which can be released. For instance, an older person looking for equity release is allowed to release a higher percent value of their home. However, a younger person will not be allowed to release the same value.

 

The following are some important points to mull over when opting for equity release:-

Age – As mentioned, age plays an important role while determining the percentage value of the home which can be released. Keep in mind that there is no maximum age limit as such when it comes to determining the percentage. For instance at age 55 which is the youngest possible age for equity release, themaximum release is currently 19%. As the age increases, so does the percentage.

 
As a consequence, the following are examples of maximum releases possible relating to a roll-up equity release scheme: –

Age 55 – 19%

Age 65 – 29%

Age 75 – 40%

Age 85 – 48%

 

Regulation – Lifetime mortgages and equity release are regulated and monitored by the Financial Services Authority. This came into effect after adverse publicity with regards to older equity release schemes which were the fore runners to todays plans. Therefore, in 2004 the lifetime mortgage market became regulated under the Financial Services Authority (FSA). Home reversions followed later & became regulated in 2007.

 

Choosing an equity release plan – If you are choosing an equity release plan, keep in mind that it should have a no negative equity guarantee. This is a requirement of SHIP (Safe Home Income Plans) that any equity release scheme currently a member must have this feature present within the plan. The no negative equity guarantee provides security that on eventual repayment, be it on death or long term care, the value of the debt can never exceed the property value. The worst case scenario would be that no equity will remain for the children, however at the same time no debt can be incurred.

 

Consideration of the above mentioned factors will help you immensely when choosing an equity release plan.

 

To discuss any of the features described above, or to ascertain how much you can borrow please call one of our equity release specialists on 0800 678 5159.

Altenatively, you can email mark@equityreleasesupermarket.co.uk

 

Opt For Equity Release If You Want To Improve Your Lifestyle After Retirement

Friday, August 27th, 2010

Equity release is increasingly becoming a crucial part of retirement planning. Retired individuals can use this option to make their retirement more luxurious and comfortable. Equity release allows you to unlock the equity from your property as a regular income or as a lump sum amount, or both.

 

Equity release schemes also allows individuals to stay in their property until they move out or have passed away. Two different types of equity release schemes are available with numerous variations.

Lifetime mortgages and home reversion are two options you can choose from.

While home reversion involves selling a part or complete ownership of your home, lifetime mortgages involve taking a completely new loan secured on your home. In return, both options will pay you a monthly and/or lump sum income.

 

What purpose can equity release loans be used for?

Equity release loans can be used for different purposes depending on your requirements.

You can use it to:

• Pay off a mortgage
• Top up your retirement income
• Purchase a holiday home
• Make home improvements
• Help your relatives and children to purchase a new property.

 

What is lifetime mortgage and home reversion?

Lifetime mortgage equity release schemes allow you to take a new loan that is secured against your property. You do not need to make any repayments and you can still continue living in your home. On the other hand, home reversion allows you to sell full or a part of your property. After the borrower passes away, the property is sold and thus the loan amount is recovered.

 

For further advice, contact the Equity Release Supermarket team on 0800 678 5159

 

Reasons To Opt For Equity Release Schemes

Thursday, August 26th, 2010

Are you facing financial problems due to the credit crunch and the after-effects of the recession? If your answer is yes, then equity release could an ideal solution for you.

 

Today, many homeowners all across the UK are opting for equity release schemes. This is because these schemes provide tax free cash against the value of your biggest asset – your home.

 

Equity release is a simple process which helps in unlocking or freeing the funds which are tied up in your property. To qualify for equity release schemes, you have to be above 55 years and own a property which is more than £60,000. You should have little or no mortgage at all & the amount. If you have a mortgage & considering equity release then the mortgage must be repaid with the proceeds of the equity release scheme, or alternative funds if available.

 

The reason being is that the equity release scheme can be the only secured loan allowed on the property

 

The various benefits offered by equity release schemes

One of the best things about these schemes is that they offer a lump sum of money and still allow you to live in your home till it is eventually sold. Once you get the money or regular income from the financial institutions then you can enjoy the benefits, as it offers tax-free cash.

 

You can spend the money in different ways such as:

• Improve your retirement lifestyle
• Pay medical bills and other outstanding debts
• Buy a new car or a second home.

 

The repayment will be made after your death by selling your property, so you do not have worry about repaying to the lenders. To make an appropriate decision, obtain the services of an experienced equity release consultant. They will be able to guide you about the different schemes and interest rates available.

 

All the equity release schemes are planned in such a way that they allow retired individuals to enjoy their retired life peacefully.

 

To find an independent equity release adviser local to you click here or call 0800 678 5159 & one of our advisers will contact you as soon as possible.

 

Equity Release – A Support To Your Pension Shortfall

Thursday, August 26th, 2010

After retirement, from both a financial and individual standpoint, achieving a comfortable retirement is a process that requires good planning and many years of saving. For anyone who retires with insufficient pension, they will hardly find any solution out there. This is when equity release can be the best solution to generate income.

 

An increasing number of elderly people are now opting for equity release schemes due to the many advantages it offers. Equity release allows individuals to free up a considerable value locked in their property. By opting for equity release, retired people can easily improve their standard of living.

 

Who is eligible for equity release schemes?

Retired individuals over 55 years of age are the best candidate for equity release schemes. If you are looking for an extra source of income after retirement, equity release can help you unlock the value of your home while still residing in. When opting for equity release scheme, you must ensure that you know all the facts and information related to it.

 

Home reversion and lifetime mortgages are two options you can go for. Lifetime mortgages are appropriate for the ones who have already passed retirement age and unable to raise capital via other sources. Presently, lifetime mortgages are one of the popular equity release schemes that help individuals access the amount of money from the value of their home in the form of mortgage.

 

When looking for the best means to generate income during your old age, equity release schemes could be the best option to go for. However, you should always seek independent equity release advice & this is where Equity Release supermarket & its team of specialist advisers can provide free assistance & advice.

 

Call us today on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

Is Equity Release A Good Option To Secure Your Future?

Wednesday, August 25th, 2010

More and more people have started enquiring about equity release schemes. The growing popularity of equity release schemes is no surprise since the rate of returns on savings, therefore income produced for pensioners, has become considerably low.

People save throughout their lives to spend their old age in comfort. People rely on their savings for their future. With the low returns, it has become difficult for retired people to survive on just their savings.

 

Traditional mortgages

Though retired individuals may have money locked in their property, this cannot alwys be unlocked using the conventional mortgage route. The traditional mortgage route requires the potential borrower to confirm affordability and have a consistent programme for repayments to the mortgage. This can be very difficult, as the majority of people’s income could solely be the state pension. On its own this would not justify supporting a mortgage & therfore it is only people with additional occupational or private pensions that can support a mortgage in retirement.

 

Equity release is a windfall

Equity release has proven to be a benefit to all those individuals aged above 55 to generate cash from their property, without having to sell it. Though this may seem attractive, subscribing for an equity release scheme should not be done without proper research.

 

Typically, there are two types of equity release scheme; home reversion schemes and lifetime mortgages.

Lifetime mortgages

With a lifetime mortgage, the borrower is not required to pay monthly instalments. Instead, the interest charged gets rolled up on the sum taken on the loan and can be repaid when the property is sold off after the owner’s death.

 

Home Reversion schemes

With a home reversion scheme, the owner is required to sell off part or all of their property to the ‘reversion’ company to get cash in return.

Equity release is a beneficial way of getting attractive cash benefits using your assets, but thorough research should be done to understand the potential benefits and limitations.

 

Please contact the Equity Release Supermarket team on 0800 678 5159 to get independent equity release advice from one of the leading equity release advisory service companies in the market.

 

A Brief Guide To Equity Release Schemes

Tuesday, August 24th, 2010

The lack of sufficient pension provision has further created a problem to older citizens over the past few years. Thankfully, several retirement schemes have been to help such individuals. Equity release schemes in particular are set to rise in popularity as older citizens seek to use the value in their homes to cover the financial shortfall.

 

The increasing popularity of equity release schemes

Some pensioners are turning towards equity releases schemes as they consider the prospect of trying to increase their standard of living. Such schemes also help them maintain the quality of life, post-retirement. From feedback with clients, it is becoming increasingly apparent that children want their parents to lead a prosperous & enjoyable lifestyle.

 

The following is a straightforward guide for those individuals who want to opt for equity release:

Firstly understand that equity release is the term used to cover financial products which are used to release equity in the home. However, you will not have to meet any monthly payments in order to be entitled to apply for this particular scheme. Equity release schemes are divided into two main categories namely, lifetime mortgages and home reversion plans.
Lifetime mortgage schemes are one of the most common equity products. They are also popular among the older citizens as they provide a steady supply of cash to them. The cash might be given on the basis of a monthly instalment or lump sum.

 

Some of the superior advantages of equity release schemes are as follows:

• No monthly payments
• Fixed rate of interest for life
• A no negative equity guarantee

 

However, keep in mind that equity release is not the final solution for cash-flow problems. Be sure to consult an equity release advisor before arriving at a decision.

All Equity Release Supermarket financial advisers are fully qualified to give independent equity release advice.

 

Please call freephone 0800 678 5159 or visit the market leading equity release website at mark@equityreleasesupermarket.co.uk

 

The Types of Equity Release Offered By Financial Institutions

Monday, August 23rd, 2010

If you are 55 plus and own your own home that is your main residence, then you are eligible to choose from any of the current equity release schemes.

Today, many retired people are opting for equity release schemes because they offer a lump sum of money against the value of the property. Home reversion plan and lifetime mortgages are two different types of equity release schemes.

 

By opting for home reversion plans, you can sell all or just a part of your property in exchange for money. This tax-free cash will help you to live the rest of your life in financial security. There is also a lifetime mortgage scheme

which allows homeowners to sell their whole property for money.

 

Lifetime mortgages are further divided into various types such as:

  • Roll-up plan – Under this scheme, you can borrow an amount of money from the mortgage lender against your home. You do not have to make any payments to the lender in order to repay the equity release mortgage. Instead the interest charged is added to your last years balance & compounded annually thereafter. Therefore the balance will increase year by year until the equity release planholder either moves into care or dies. At this point, the property is usually sold & the equity release company is repaid.
  • Home income plan – By opting for this scheme, you will receive a regular monthly income against your home. In this scenario, a percentage of the value of the property is sold in exchange for a tax free lump sum. These funds are used to purchase an annuity which is how the scheme then provides the monthly income. The lender or financial institution will be paid by selling the home after you die.
  • Interest-only mortgage – Unlike the roll-up plan, this type of equity release scheme allows you to pay off the interest charged monthly. Therefore the balance of the mortgage will remain exactly the same for the duration of the plan term. As a consequence the beneficiaries will know the exact amount that will be deducted from their inheritance. The actual loan is again repaid by selling the property. For interest only lifetime mortgage deals see our website.

 

Out of the above mentioned lifetime mortgage schemes; you can choose the one which suits your financial needs by contacting Equity Release Supermarket on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

Experienced Mortgage/Equity Release Adviser – North West Job Vacancy

Sunday, August 22nd, 2010

Due to the increased volume in quality mortgage leads being generated, Equity Release Supermarket are now looking to expand its adviser roles to encompass a qualified & experienced mortgage adviser.

 

Job Overview

Equity Release Supermarket is looking for an experienced Mortgage Adviser to join our practice on a self employed basis.

Excellent mortgage lead generation is provided via our innovative website.
Leads have been developed in a niche post retirement market which can be discussed further upon application.
Additional lead generation opportunities will exist in the equity release sector, once a satisfactory induction period has been completed.

 

Full admin and IT support will be provided and the adviser will need to be located in the North West as access to our Birchwood branch will be required.
Approached with the right attitude and self motivation, the position is highly rewarding with realistic targets and uncapped earnings.

 

Duties

Main duties include contacting clients from the leads provided, to arranging face-to-face or mainly telephone appointments. Also, prospecting for self generated business from your own client bank or building professional relationships will be expected in due course.

 

Qualifications

The ideal candidate will have gained CF1, CF6 and ER1 or equivalent, will be a positive and enthusiastic industry professional with a proven track record in a regulated environment.

 

For further information, please contact Mark Gregory on 0800 678 5159 or email your CV to mark@equityreleasesupermarket.co.uk

 

All You Should Know About Equity Release

Sunday, August 22nd, 2010

Equity release is a concept which is often misunderstood. It is a common myth that you lose your property if you opt for this scheme. This is not the case.

Equity release is the equity tied up in your property that you can now release. This facility lets you still enjoy the ownership rights by mortgaging your assets. Equity release schemes give you 100% ownership of your property till you die.

 

What are the different types of equity release?

There are two types of equity release schemes:

  • Lifetime mortgage: A lifetime mortgage scheme lets you retain complete ownership of your assets. An individual who takes the loan has no responsible any monthly payments. The loan is eventually repaid by the legal heirs after the holder moves into care or eventually dies. Hence, the reason why this is known as a lifetime mortgage scheme.
  • Home Reversion scheme: You need to sell part or all of your property to the reversion provider for this scheme to work.

 

There are three reasons how the size of the release can be affected: –

  • The greater the percentage of the property sold, the greater the size of the release
  • The older the equity release applicant, the higher the amount that can be raised
  • If their is an element of ill-health, then the home reversion provider can release a larger than normal cash lump sum

 

Types of payment

There are two types of method of receipt of the cash payment you get in an equity release scheme; a lump sum and a monthly income payment. You can opt for one of these payments dependent on your needs.

A lump sum amount can be used for capital expenditures, while monthly payments can be chosen by those who need a regular income in retirement.

The most important benefit of equity release is that it gives you tax-free money. The only thing you need to remember is that you can mortgage the property which you own.

The minimum age to be eligible for these schemes is 55 years for a lifetime mortgage and 65 for the reversion scheme.

 

To obtain advice on which is the right equity release scheme for you please ring the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

Common Questions Asked About Equity Release

Friday, August 13th, 2010

There is no doubt historically, that buying property long term has been a profitable investment.

This phenomenon is now becoming of great assistance to people nearing retirement and needing an additional source of income to help live comfortably. Older homeowners now have the option to free up money from their home to gain a steady income. This can be done though equity release schemes which enable homeowners to release accumulated equity in their property.

 

Why would people want equity release?

The main reason to opt for this process is to free up money in a property. This money can be used to accomplish a number of purposes. While some homeowners prefer to use the money on daily expenses to make their lives better, others use it for taking holidays or to buy personal items they want or need. Regardless of the need, equity release calculators can help analyse & work out how you can achieve this quickly and easily.

 

Is it an ideal option?

Equity release can be an ideal way for retired people to get a certain percentage of income from their properties. However, the convenience of this option differs from person to person. While some people prefer to get regular payments from their homes without moving out, there are others who would want use their property to get a large tax free lump sum.

 

Do I need legal advice?

This is one of the most common questions people ask themselves when asking about equity release. Although it sounds like a fairly simple process, it is best to have a professional overseeing the process. This will ensure the scheme is suitable and beneficial for you. One of the aspects the solictor must undertake to comfirm he/she is satisfied the client understands the contract they are entering into, is the signing of the SHIP certificate.
This confirms the solicitor has discussed the equity release scheme with the client, & is happy, that they are happy, with the process & legal implications of taking out equity release form the property.
Equity Release Supermarket can recommend a solicitor who is a member of ERSA. This is an alliance formed between a group of established law firms that specialise within the field of equity release. These solicitors aim to promote the importance of specialist equity release legal advice within the equity release marketplace.

 

To find a solicitor who can act on your behalf contact the Equity Release Supermarket team on 0800 678 5159.

 

 
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