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Archive for November, 2010

Equity Release – An Excellent Way To Improve Your Finances

Tuesday, November 30th, 2010

There are many retired people who cannot find the quality of life they yearn for on the limited savings and small pensions they have. If you are suffering from financial difficulties then equity release can be the perfect solution for you. Equity release allows you to unlock money against the value of your home.

 

How does equity release work?

To qualify for equity release, you must be above 55 years old and own a home which is worth more than £60,000. Once you have opted for equity release, you will receive a lump sum amount of money or monthly income from the lender.

 

If you have decided to go for equity release then you must know that there are two different equity release schemes in the market.

 

Lifetime mortgages – These schemes are preferred by many homeowners these days because they can be provided in different formats to suit people’s circumstances. The different types of lifetime mortgages range from lump sum equity release to the flexible drawdown equity release schemes. The lump sum plans do as the name says on the tin, in that they provide a single, one-off lump sum which is fine if no further cash releases are required.

However, this can be difficult to predict & when interest rates for the lump sum & drawdown are the same then invariably the drawdown plans are the most popular equity release schemes available.

 

Home reversion plans – These equity release schemes allow you to sell the whole or only a percentage of your home to the home reversion lender. This means that you have the option to also keep some part of the property for your beneficiaries. These are the only type of equity release schemes that can guarantee an inheritance for your beneficiaries.

Both the above mentioned equity release schemes are regulated by SHIP (Safe Home Income Plans) and the FSA (Financial Service Authority). These organisations ensure that all the applicants get the protection that equity release UK schemes should receive in getting the appropriate deal for your circumstances.

 

To ascertain which or how either of the aforementioned equity release schemes can benefit you, please contact Mark Gregory on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

 

Equity Release Schemes – How Do They Benefit Retired Homeowners?

Friday, November 19th, 2010

Lower pension incomes and high living costs have resulted in retired people looking for different financial solutions to make ends meet.

Due to these issues, more and more retired homeowners are turning to equity release schemes for an additional source of income. Equity release allow homeowners to use some of the cash tied up in their homes and get a tax free lump sum. They are also permitted to continue living there rent free & in the case of lifetime mortgages with 100% ownership to.

 

Additionally there are other advantages gained from equity release schemes:

No need to move – One of the best things about equity release schemes is that homeowners do not have to worry about moving out of their homes when they sign up. In the case of roll-up lifetime mortgages the plan holder retains 100% ownership of the property & can remain there until the second person has died or moved into long term care. With regards to the second type of equity release – home reversion plans, the planholder retains the portion of the property they do not sell to the reversion company.

Inheritance protected equity release products – Another benefit of these schemes is that homeowners can now choose whether or not they want to guarantee a certain percentage of their home. This means that they can still be sure there is some equity left for their beneficiaries. This can therefore form part of a gift of their inheritance.

Supplementary income – More than 50% of retired homeowners have wealth that is tied up in their property. For this reason, many choose home equity release schemes to gain additional income. This retired people to meet daily expenses & assist with the day to day costs of living in today’s retired environment.

 

In all cases, homeowners can move home during the term of their equity release schemes. However, they have to notify the equity release company. The reason for notification to the lender is that the equity release planholder has two choices. Firstly, they have the option of porting the equity release scheme over to their new property. The new property would have to meet the lenders property criteria, however it can be transferred with no early repayment penalty. Secondly, the scheme can be repaid in full, thus removing any future equity release liability. You would therefore need to bear in mind any potential early repayment charges.

 

As equity release schemes can be rather complex, it is best to have a professional explain and oversee the process. All Equity Release Supermarket advisers are authorised by the FSA & the equity release schemes they advise on are all SHIP members.

 

The Equity Release team will provide independent financial advice & research from the whole of the equity release market.

To gain from their experience, please call freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

Equity Release Schemes – Five Important Benefits

Tuesday, November 9th, 2010

Equity release schemes are one option available to enjoy the fruits of retirement in a way many would never have envisaged.

Some people are still unaware of equity release schemes and their numerous benefits; here we aim to address those issues.

 

Maintain standard of living

Immediately upon retirement, there is an evident drop in income. Unfortunately expenses do not.

You may think that saved money during your working life will be adequate for you to live comfortably. Rising inflation & lack of confidence in pension plans might make this difficult.
There are other options to consider & one of these maybe to downsizing to a smaller home. Other options available prior to considering equity release would be using any savings, asking relatives for financial assistance, claim any benefits due or if you have a good disposable income there is still the option of an interest only mortgage. The Halifax Retirement Home Plan can assist here.

If you look into equity release schemes, you will notice that you do not have to sell your property. Therefore, you can remain at the property for the rest of your life.
Applying for equity release, enables you to obtain some of the cash value of your property and with a roll-up lifetime mortgage you still remain the owner. This way, you can maintain your standard of living and can avoid the hassle of moving into another house.

 

Fulfil your needs

Additional cash can help retired individuals to fulfil basic needs as well as allowing them to pursue leisure activities. You may want to clear some debts, go on a long holiday, buy a new house or simply develop new hobbies. Equity release schemes can help you with these things.

 

The age factor
Age is an important factor when buying an equity release scheme. Your age is directly related to the amount of cash you can get. The older you are, the more you can get. Lifetime mortgage schemes start at age 55 with a maximum release of 20% & run beyond age 90 releasing over 50%.

Home reversion schemes start at age 65 & again go past age 90 with the maximum release being the sale of 100% of your property to the home reversion provider.

 

No limitations on spending

A good thing about equity release schemes is that you can spend the money the way you want to and there are no restrictions. We would only advocate initially taking an amount which you are likely to require in the first 12 months. The reason for this is that drawdown equity release schemes allow you to take the equity release cash in stages rather than all at once. This ensures that you pay less interest in the long run as you only pay interest on the actual amount you have withdrawn.

 

Tax-free cash

The cash you receive from the scheme is free of income tax. However, if any funds are placed on deposit then you could pay tax on any interest gained.

 

To find out whether equity release is suitable for you why not have a free initial consultation with one of our qualified equity release advisers. Call now on freephone 0800 678 5159.

 

Alternatively, email admin@equityreleasesupermarket.co.uk

Website – http://www.equityreleasesupermarket.co.uk

Equity Release Supermarket Nominated For The 3rd Year Running

Saturday, November 6th, 2010

For the 3rd year in succession Equity Release Supermarket have been shortlisted at the prestigious Equity Release Awards Ceremony on 12th November 2010 at Merchant Taylors Hall in London.

This follows their success in 2008 where they won the award of Best Financial Advisers – less than 10 employees & subsequent nomination in 2009.

 

Director – Mark Gregory commented, “I’ve got to be pleased with the continuous recognition that Equity Release Supermarket is achieving. This has been achieved despite difficult economic conditions & is testament to the excellent team of advisers & their efforts during 2010”

 

Equity Release Supermarket are independent equity release specialists for the over 55’s lifetime mortgage market.
To contact Mark & the Equity Release Supermarket team ring freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

Website – www.equityreleasesupermarket.co.uk

More Great News For The Equity Release Market As New Life Mortgages Return With Lowest Interest Rate

Wednesday, November 3rd, 2010

Signs are certainly showing of a recovery in the equity release market as news that existing SHIP member – New Life Mortgages are returning with two new competitive products.

They arrive on the back of the recently launched impaired life equity release lender; more2life at the beginning of October.

 

Although New Life Mortgages hadn’t officially withdrawn from the market in 2009, it remained in the market whilst new funding sources were explored..

That time is now & details of the revamped equity release schemes can also be found on the Equity Release Supermarket website by clicking here.

 

New Life Mortgages have decided to make a statement, by not only relaunching their product range, but also arriving with the lowest interest rate in the market at just 6.35% monthly.

The Lifetime Fix and Lifetime Gold products both position themselves into the ‘roll-up’ lifetime mortgage range & are designed to be the most competitive equity release products in the market for the over-55’s.

 

The New Life Gold product is designed to offer the maximum release possible for a client in good health. Plans start at age 55, with a release of 20%, thus offering the maximum release currently available in the equity release market.

 

The age related percentage’s that can be released are as follows: –

Age 55 – 20%

Age 60 – 25%

Age 65 – 30%

Age 70 – 36%

Age 75 – 41%

Age 80 – 46%

Age 90 – 51%

 

The product is uniquely available only on a single life basis & has a very competitive interest rate of 6.75% monthly. This compares favorably with its peers at the maximum release end of the market who would be Aviva & new entrant more2life.

As an extra incentive, New Life Mortgages are offering £300 cashback on NLM Gold cases that complete prior to December 29.

 

The Lifetime Fix is the second product on offer from New Life Mortgages with the lowest rate currently available in the equity release market at just 6.35% monthly.

Available on a single & joint life basis the plan releases a lower amount than the Gold product, starting with a release of just 17% of the property value at age 55.

As an added incentive New Life are offering £600 cashback on cases completed before 29th December, so if you are considering equity release with a low interest rate hurry!
Both schemes have a minimum acceptable property value of £60,000, which again is the lowest in the equity release market & may bring previously ineligible applicants a new lease of life?

If early repayment charges are an issue with some lenders relying on gilt rates, New Life Mortgages have a more conventional attitude with the simplistic rate of a 5% penalty in the first 5 years. Thereafter no penalty exists.

This could obviously favour people who may have shorter term retirement plans with their properties, although equity release UK schemes are designed to run for the rest of your life.

 

Should you require a product fact sheet or quotation on any of these New Life Mortgage products, please call the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

 
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