Posts Tagged ‘equity release schemes’
Wednesday, October 19th, 2011
The ever increasing price rises are a concern for everyone. Inflation today has been quoted at 5.4% & therefore pressure is being exerted on mortgage & equity release interest rates. People who have retired and have a limited pension are in a worse situation than in the past. Their pension does not allow them to fulfil even their basic needs, let alone luxuries. In this hard and fast world, pensioners often feel secluded and uncared for.
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However, all is not doom & gloom for those with properties & equity tied up within them. Mortgages haven’t tended to be the focus for the retired. Their credit history tends to err on caution rather than frivolous in nature. Yet credit trends are changing with the acceptance of new credit lines & leniency towards the children’s inheritance. So more emphasis is being placed on the release of equity from lifetime mortgage schemes.
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If you have not heard about equity release, then we will help you to understand all about it. Equity release schemes allow you to generate extra money over and above your pension. If you are one whose money is in limited supply, equity release schemes could be the answer for you. If you own property, you can apply for any type of equity release scheme. Your property enables you to release tax free cash which can be taken in stage payments or as a one off lump sum. This additional cash helps you to live your life properly and with all the luxuries you have become used to. More common reasons for equity release UK plans are home improvements, new car, holidays, gifting to the children or to help with the purchase of a new property.
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There are many plans you can apply for, but drawdown equity release schemes are now the most popular. These roll-up equity release schemes offer an overall cash facility from which you can take money from as & when required. By opting for this formula you will only pay interest on cash actually taken & not the funds still held by the equity release company in their reserves.
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Increasing popular are the interest only lifetime mortgage plans provided by companies such as Stonehaven equity release. Helped by the previous popularity of the Halifax Retirement Home Plan, interest only lifetime mortgages have increased awareness of interest paying mortgages in retirement.
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Equity release has been in existence for a long time now, but still not everyone knows about it. The equity release trade body SHIP (Safe Home Income Plans) has led a sole crusade in raising awareness by pushing for consumer protection. Thanks to SHIP, today’s equity release schemes can be trusted & applied for without concern.
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If you need advice on whether equity release or interest only lifetime mortgages are for you then please contact Equity Release Supermarket on 0800 678 5159 or visit the EquityReleaseSupermarket website.
Tags: equity release, Equity release interest rates, equity release schemes, Equity Release Supermarket, Halifax Retirement Home Plan, release of equity
Posted in Equity Release, Interest Only Lifetime Mortgage | No Comments »
Tuesday, October 18th, 2011
An increase in the standard of living & more recently inflation levels has caused a shortfall in pension provision. This is now affecting all those people who are on the verge of, or now in retirement. So for those retirees who are on fixed incomes, how can they allay their fears of personal budget shortfalls?
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Well consider equity release schemes as an effective solution to this problem. If you are looking for some more information, this guide will help you understand the lifetime mortgage schemes available.
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What is an equity release scheme?
Equity release schemes allow you to release equity tied up within your home. These schemes are very popular amongst individuals who are entering, or now into the retirement phase of life. Thus, retirees can therefore overcome any shortfall in their income by utilising the tied up tax free cash within the value of their home. Equity release schemes provide pensioners with a steady flow of income thereby helping them to maintain and improve their quality of life. Additionally, in recognition of the demand for irregular tax free cash, drawdown equity release schemes can now provide flexibility.
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Equity release is used to cover financial products that release home equity. However, they need not require any monthly payments & therefore do not affect retirement budget. It is very important to keep in mind that equity release schemes can only be considered for people who are above 55 years of age. For home reversion schemes this minimum age is increased to age 65 in lieu of the manner these schemes operate.
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Lifetime mortgage plans are becoming increasingly popular amongst retired individuals. They provide a lump sum amount based on a combination of the age of the youngest homeowner & the property value.
The younger this age is, the lower the loan-to-value.
In contrast for those more elderly can release a percentage of the property upto 54%.
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A few other benefits of SHIP (Safe Home Income Plans) equity release schemes are:
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- Improved standard of living
- Portable mortgage to another property
- A fixed rate of interest for life
- No monthly payment or instalments required
- No negative equity guarantee
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Equity release is an ideal option when it comes to securing your future. If you find the process confusing, it is highly important to consult an equity release advisor such as Equity Release Supermarket. With access to market leading deals & special interest rates they can research the whole of the equity release market to find the best equity release deal available.
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If you require advice on which equity release is suitable for you, contact the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
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Tags: drawdown equity release, equity release, Equity Release Adviser, equity release schemes, Equity Release Supermarket, home reversion schemes, No negative equity guarantee, Roll up lifetime mortgage, SHIP
Posted in Equity Release, Interest Only Lifetime Mortgage | No Comments »
Monday, October 10th, 2011
People think that going directly to equity release companies rather than going through an independent equity release adviser will save time and money. This is not really true.
There are intermediaries such as Equity Release Supermarket who can research the whole of the equity release market which in itself includes over ten equity release providers. Each company themselves may then have several different equity release products which opens a plethora of options for the proposed buyer.
So how can approaching one individual company therefore provide the customer with the best advice? Obviously not.
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So should equity release intermediaries be your only option?
Direct companies offering equity release schemes are now few & far between. Most equity release lenders realise the importance of providing quality advice & ensuring the consumer receives best advice. Again companies like Equity Release Supermarket will receive more favourable equity release deals than if the customer went directly to any lender.
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If we take Aviva for example.
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Their direct sales force has been drastically cut for its halcyon days from over 10 years ago when competition was not so fierce as only a few lenders offered equity release plans. Marketing costs & the funding of a direct sales force comes with a huge financial burden. Company cars, pension schemes & basic salaries plus bonuses all need to be paid for & by whom…the customer.
Compare this to a company such as Equity Release Supermarket. Aviva do not incur any marketing costs for them, no salaried sales force with company cars, so the savings can be allocated elsewhere for such intermediaries.
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This is shown in the product offering & the competitiveness of the interest rate & deals Equity Release Supermarket receive from Aviva, which can then be passed onto the consumer. Currently there is over 0.5% disparity between the Aviva drawdown scheme sold via Equity Release Supermarket & that sold by Aviva direct. Equity Release Supermarket can offer a special interest rate of just 6.32% & they can also currently offer a free valuation on properties upto £250,000.
The only extra fee involved with an equity release intermediary firm will be the advice fee they charge. However, this would seem a fair price to pay for knowing you have the best Aviva equity release deal in the market. This could be possibly saving £270 on the valuation fee & depending on the size of the release applied for could amount to many £1000′s in interest by having a much lower interest rate!
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Criteria to be an equity release advisor
A lot of equity release scheme providers get their message through to the public via the media; however this alone does not explain all the terms and the details in depth. To understand each and every aspect of a certain scheme one has to have a good knowledge and an in-depth expertise of the terms used in the market as a whole. If equity release is not for you, your independent advisor will should tell you so. They will also consider any financial alternatives such as downsizing, using savings etc before arriving at an equity release recommendation.
Professional independent equity release advisors must have the appropriate licences in order to carry out any business. They must comply with all the rules and regulations of the Financial Services Act & deal with equity release schemes that are members of SHIP.
Therefore, always do your research & find an independent financial adviser who is local to you & who will take the time to understand your requirements & find the best equity release UK scheme for you.
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If you require independent equity release advice with a no obligation appointment, please call the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk.
Tags: Aviva, Aviva drawdown equity release, equity release, Equity Release Adviser, equity release schemes, equity release UK, independent financial adviser
Posted in Equity Release | No Comments »
Tuesday, August 2nd, 2011
Confusion reigns at a time in life when stability, financial security & freedom to enjoy the fruits of one’s success should be evident. Yes, we are talking retirement, equity release & the increasingly popular Halifax Retirement Home Plan.
We discuss the options available to those already retired or the up & coming baby boomer generation, as they prepare to assess how they are to manage in today’s financial maelstrom.
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For many, & usually it all boils down to lack of financial planning in earlier life; retirement is none of the aforementioned attributes associated with the longest holiday of your life.
We all go through life thinking retirement seems a distance over the horizon. From getting that first job, raising the children & moving up the ranks in the employment world, our lives move forward apace.
But the inevitable will reach us all one day & without foresight retirement could be the biggest challenge in your lifestyle thus far.
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So how should we prepare & how do we invest in our futures to ensure a retirement of fulfilment?
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The spoken word, ‘hope for the best, prepare for the worst’ must have a ring of truth when it comes to retirement planning. It’s a recipe on the menu that’s always put on the back burner & one on the ‘to-do’ list of things that can wait until tomorrow…YOU CAN’T.
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Looking back at that first job is where the seeds should initially be sown. Whether it’s joining that company pension scheme or making your own provision, a pension should be the life jacket for your retirement.
The old adage of the earlier you start a pension the less you need to pay in later, is gospel & with the tax advantages on offer they still represent one of the best ways to build a pot of gold for the future.
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But there are other options now available which represent a safer alternative & more hands on approach such as real estate.
The buy to let market is currently undergoing transformation in the current economic climate, with rental incomes outstripping savers returns on bank & building society accounts. There is also the potential capital appreciation aspect of owning a property which has been a tried & tested route for many over the longer term.
Property is a tangible asset; you have control over how it looks, you can manipulate it & affect its value. The sole aim of these actions is to build asset value & thereby probably without hindsight, can build yourself a ‘retirement vehicle’.
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So let’s see which vehicle will suit your requirements & enable you to navigate down the retirement highway…
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Firstly, the question that needs to be asked is whether an income or capital lump sum is required? Given the fact that most tax free cash requirements are for capital, the options are then narrowed down to affordability in retirement.
The next important consideration is whether one can support the monthly payments of an interest only mortgage, or are finances so tight that no further monthly payments are required throughout retirement. The answer to this will filter us towards the ultimate decision; that is whether the solution is an interest only lifetime mortgage or a roll-up equity release scheme?
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On the one hand you have an interest only mortgage, where monthly payments are required to be maintained for the rest of your life & results in a continuously stable & level balance during the remaining term.
This is in complete contrast to a roll-up equity release plan, which requires no monthly payments whatsoever, but allows the interest to compound & the balance of the mortgage to get larger.
Let’s have a look the features of each option further.
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Roll-Up equity release scheme
- Classified as a Lifetime mortgage, hence no term is specified
- Schemes are regulated by the FSA & are also members of SHIP
- Equity release schemes start at age 55
- No income required for eligibility
- Maximum release is 55% of the property value (with ill-health)
- Credit history is not a major concern to equity release companies
- No monthly payments required
- Increasing balance as the interest is compounded monthly or annually
- Flexibility of drawdown schemes available to take regular cash releases with guaranteed reserve facilities. This ensures future cash availability with no further costs.
- Interest rates are fixed for life
- Reduced, or no inheritance left for the beneficiaries of the estate
- Executors have upto 12 months in which to repay the lender, usually by sale of the property
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Halifax Retirement Home Plan
- Classified as a Lifetime mortgage, hence no term is specified
- Pensioner mortgage & regulated by the FSA
- Starting age is 65, however with enough pension income, over 55’s are acceptable
- Retirement income alone will determine how much that can be borrowed
- The maximum amount borrowed is capped at 75% of the property valuation
- Credit history is checked & any adverse record could result in a declined application
- Monthly payments must be maintained to avoid repossession
- Mortgage balance remains exactly the same throughout the plan term
- Further advance application required to borrow additional funds & will be credit assessed each time for affordability.
- Option of tracker & fixed rates available, initially for a maximum of 5 years. Therefore, no guarantee of the future costs of the monthly mortgage payments.
- Reduced inheritance, albeit a specific amount which the beneficiaries will know the extent
- Beneficiaries have 18 months in which to sell the property, after death or the mortgagors moving into long term care.
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So the winner is?
There is no actual winner in this pensioner mortgage market.
Both schemes have the advantages & disadvantages depending upon one’s retirement finances.
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However, if a good retirement & disposable income is available & future affordability secured, then certainly the Halifax Retirement Home Plan is justifiable for the applicants & more so for the beneficiaries. Nevertheless, it is vitally important that steps are also taken to protect each party to the interest only retirement mortgage in case one applicant dies as the survivor will still need to maintain the monthly payments. Therefore, life insurance should always be considered on the Halifax Retirement Home Plan.
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Alternatively, for those on lower incomes, less of a disposable income & are not too concerned about their children’s inheritance, then a roll-up equity release mortgage could be their preference. The roll-up equity release schemes have no effect on monthly budget & can never result in repossession based on lack of affordability or missed payments.
These schemes can be classed as a ‘mortgage of last resort’ as once all the alternatives have been considered & eliminated. Equity release roll-up can always be the backup plan. Even more so should one default or struggle with the affordability of an interest only lifetime mortgage such as the Halifax Retirement Home Plan, as equity release schemes can be used to clear the Halifax mortgage.
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The following is an equity release tip – to ensure that equity release can act as a safety net, if you are looking to borrow on a Halifax equity release scheme then always consider & keep within the loan-to-value limits of the equivalent equity release scheme rules. If you do this then you have equity release as a fall back to switch to in the future.
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There are many more tips & advice available on this subject, but as always seek an independent financial advisory service such as Equity Release Supermarket who are qualified & experienced in these two specialist fields.
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For help on deciding which type of equity release is best advice for yourself, please contact the Equity Release Supermarket advisory team on freephone 0800 678 5159 or email mark@equityreleasesupermarket .co.uk
Tags: equity release, Equity release calculator, equity release schemes, Equity Release Supermarket, halifax equity release, Halifax Retirement Home Plan, lifetime mortgages
Posted in Advice, Equity Release, Halifax Retirement Home Plan | No Comments »
Sunday, July 3rd, 2011
More great news for the increasingly buoyant equity release market as Partnership re-enter with their Enhanced Lifetime Mortgage plan.
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Specialists in impaired life annuitys; Partnership are now bringing their underwriting expertise to equity release schemes. The logic behind their offering, provides a bespoke underwriting event for each client looking to achieve a maximum equity release status. Their experience from the enhanced annuitys market has led to a radical re-think in the equity release market where effectively the same principles can apply.
Consideration for impaired life equity release schemes is certainly gaining momentum as rumour has it other equity release companies such as Aviva may also be looking into the possibility of developing their own impaired product. In fact any of the existing equity release providers who offer an annuity proposition could be in the market with potential launches under their wings?
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So what is an impaired life equity release scheme?
Well firstly lets have a look at how an impaired life annuity works…
Primarily, an enhanced annuity provider will ask the annuitant a series of health questions which dependent upon their health conditions & severity, will determine the size of the annuity pension they will receive. In essence, the worse their health is the better, as they will potentially receive a more sizeable pension due to their life expectancy not being as long as a healthy person.
It may sound crude, however Partnership’s years of underwriting experience allows them to now offer the same principles in the equity release market by offering a bigger lump sum than standard equity release providers. The maximum release, dependent upon the health questionnaire is 55% of the property value.
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What illesses will qualify?
The questionnaire itself is not as detailed as one would imagine. Likewise the number & severity of the qualifying conditions is lower than expectations, thus making the underwriting aspect of the equity release plan simplistic in assessment. The health questions are as follows:-
- Have you smoked 10 cigarettes per day for the last 10 years?
- Have you been diagnosed with high blood pressure, requiring ongoing medication?
- Have you suffered a heart attack requiring hospital admission?
- Do you suffer from diabetes, requiring insulin or tablet treatment?
- Have you suffered from a stroke (CVA), excluding mini-strokes (TIAs)?
- Have you suffered from angina, requiring ongoing medication?
- Have you been diagnosed with cancer requiring surgery, chemotherapy or radiotherapy?
- Have you been diagnosed with Parkinson`s disease?
- Have you been diagnosed with multiple sclerosis?
- Have you taken early retirement on the grounds of ill health?
- Are you currently taking any prescription medication?
Given this information, the online Partnership equity release calculator will then produce a maximum lending figure taking also into account age(s) & property valuation. A signature will then be required on a declaration form to confirm the medical questions have been correctly answered as only a sample number of applications will actually be looked into with the clients general practioners. This makes the application process quicker & smoother putting the onus on the applicant accurately qualifying their ailments.
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Are their any other features in Partnership’s enhanced lifetime mortgage scheme?
The simple answer to that is yes.
Partnership have managed to squeeze in some important features that provide additional security & protection for applicants. Aside from being a member of SHIP & thus passing the protection features of the no negative equity guarantee, assured tenancy & ability to move home, there is also an Inheritance Protection facility.
The inheritance protection feature is included at no extra cost & provides the ability to protect a part of the final sale proceeds which can then be successfully passed onto the heirs & beneficiaries. Therefore, peace of mind reigns when the biggest objection to the use of equity release schemes is ‘how much will be left for the children when I die’.
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What is their lending criteria?
The Partnership Enhanced Lifetime Mortgage is currently only available in England & Wales on property valuations over £70,000. Their approach to property types is standard amongst the industry, although they will permit borrowings on some concrete build constructions such as Laing Easy Form & Wimpey No Fines which down to the valuers comments would pass as acceptable.
The minimum age of the youngest applicant must be 60 & at least one suffering from one of the aforementioned illnesses/conditions. The minimum loan on application is £25,000 which is higher then most equity release providers, however the plan is pitched at the higher release end of the lifetime mortgage market.
The major factor setting themselves aside from the alternative impaired life equity release offering from more2life is the FREE cost to market for any applicant. Partnership have initially launched with a tempting proposal of a FREE valuation & NO application or completion fee payable on set up. In fact they even go one step further with a CASHBACK of £250 on completion which goes some way to offsetting any legal fees incurred.
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Again, thanks to companies such as Partnership showing innovation, the equity release market has shown its durability over the past 12 months at a time of economic diffculties. Perhaps the old days when the two words – ‘equity release’ & ‘apprehension’ were associated, are now becoming more of a distant memory.
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If you would wish to find out whether you would qualify for an enhanced lifetime mortgage with Partnership, please fill in this Partnership enquiry form or call freephone 0800 678 5159.
If you smoke manufactured cigarettes, have you smoked 10 or more cigarettes per day for the last 10 years?
If you smoke rolling tobacco, have you smoked more than 3ozs or 85g per week for the last 10 years?
Have you been diagnosed with high blood pressure, requiring ongoing medication?
Have you suffered a heart attack requiring hospital admission?
Do you suffer from diabetes, requiring insulin or tablet treatment?
Have you suffered from a stroke (CVA), excluding mini-strokes (TIAs)?
Have you suffered from angina, requiring ongoing medication?
Have you been diagnosed with cancer (excl. skin cancer and benign tumours) requiring surgery, chemotherapy or radiotherapy?
Have you been diagnosed with Parkinson`s disease?
Have you been diagnosed with multiple sclerosis?
Have you taken early retirement on the grounds of ill health?
Are you currently taking any prescription medication?
Tags: enhanced lifetime mortgage, equity release, equity release schemes, impaired life, lifetime mortgage schemes, maximum lump sum, more2life, No negative equity guarantee, Partnership
Posted in Equity Release, News | No Comments »
Friday, July 1st, 2011
An increasing number of senior citizens now opt for equity release schemes with the aim to release cash (equity) from their property. This can be a wise decision in order to generate extra income during their retirement years. While a lot of equity release providers are available, not many people are aware of how such equity release schemes work. At such times, it is prudent to consider taking advantage of professional help.
Financial institutions now offer the use of equity release calculators to their customers. Using this tool, one can determine the amount of equity that can be released from their property. Based on the outcome, the applicants can decide whether or not equity release is a viable option for them.
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With the number of equity release schemes on the increase, such as the recent addditions of Stonehaven, more2life, New Life Mortgages & last week Partnership, it is more important than ever to seek the services of an FSA qualified independent financial adviser. They will have the equity release tools available they will have been trained with to establish which scheme will provide the correct amount to be released. Guarded with this information it can lend them to the next stages of the decision making process in ascertaining which lifetime mortgage scheme is most suitable for such circumstances.
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Therefore, the equity release calculation can be guided towards establishing the following lifetime mortgage scenarios: -
- What is the maximum I can borrow on an equity release plan?
- What is the lowest interest rate on an equity release scheme?
- What is the minimum amount I can borrow on a lifetime mortgage?
- How much can I borrow on an equity release scheme if I am in poor health?
- What are the costs in setting equity release schemes up?
Equity release calculators will help answer these types of questions & with the calculator tools of Assureweb, Trigold & The Exchange each equity release adviser with the CeRER & CeMap qualification, will have these methods of calculations available.
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The workings of an equity release calculator
Various equity release calculator formats exists that can usually be found on the website of the mortgages & other financial organisations. The homeowner first needs to provide information related to their property. Based on this data, the equity release calculator will predict an approximate amount of equity that can be released from their property.
Advanced calculators are also available that offer in-depth information related to different possibilities. However, the availability of such a tool is subject to the equity release provider. Before deciding on a deal, homeowners are always advised to try two different calculators. To get the best deal with equity release schemes, obtaining professional help would be wise.
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Practically, the size of the equity release is governed mainly by three factors which are: -
- Age of the youngest applicant
- The valuation of the property
- Whether any existing mortgage or secured loan is present
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Dependent upon the answers to these questions will determine the net equity release availability from the property. The data provided by the equity release calculation will be the maximum equity release posssible, however it will give an indication of the extent to which one can go & therefore tyou will have the knowledge as to whether equity release will be of assistance.
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More detailed equity release calculators can advise beyond these basic measures. For instance, should a history of ill heath be present, then a larger than normal lump sum can be achieved with an impaired life equity release scheme. This will not be present or have the ability to be calculated upon by the more basic equity release calculators. Additionally, the majority of calculators will only refer to roll-up lifetime mortgages & not home reversion plans, thus they do not answer the whole question & should only be used for guidance, not literally.
Again, it is therefore of upmost importance to seek the services of a qualified independent equity release advisor who has the accurate research & calculation tools at his disposal; whom with your input & personal information, can guide you to the right equity release plan.
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The Equity Release Supermarket calculator can provide an overview & the statistics involved with the maximum amount that can be borrowed on each equity release scheme. Experience our equity release calculator today as see how much you can release. Alternatively, speak to one of the Equity Release Supermarket specialists who can be found in your area by using the ‘find an adviser‘ interactive UK map.
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Equity Release Supermarket are established & award winning lifetime mortgage & Halifax Retirement Home Plan specialists.
Call freephone 0800 678 5159 for all your post retirement mortgage questions.
Tags: calculation, equity release, Equity release calculator, equity release schemes, Equity Release Supermarket, impaired life, more2life, New Life Mortgages, Partnership, Stonehaven
Posted in Equity Release | No Comments »
Wednesday, June 22nd, 2011
The amount of equity you own is the term used to describe the value of a home less any mortgage or secured pending on it. Equity release allows you to free up this money tied up within your home.
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The equity release process will allow you to receive a tax free, lump sum of capital allowing you to spend it in whatever way that you choose.
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An obvious disadvantage is that you will not be able to hand down all of your property to your offspring. Nevertheless, you do get to live out the remainder of your life in your home, rent free or till you move into elderly care.
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If you are considering an equity release scheme, the best way to get started would be to approach an expert. Some organisations which provide equity release schemes also provide a free consultation, so remember to take advantage of their services. Some research of the advisor would be of benefit as they must be regulated by the FSA (Financial Services Authority) & have an individual registration number with them. The equity release adviser should therefore be found on the FSA website register.
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Ensure they are independent, which means they are free to deal with ANY equity release provider in the market. So ask. Some companies purport to be whole of market, however upon closer analysis they only deal with a handful of companies. You may therefore be missing out on a beneficial feature of an equity release scheme that they do not have available. This could save you £1000′s in the long run & could prove costly if the wrong equity release plan was chosen.
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Your advisor will let you in on all the vital details regarding the procedure. This will be after the equity release adviser has collated all the necessary facts regarding one’s current situation. Guarded with this information, & any soft facts provided such as ‘how important is that you leave part or all of your property to your beneficiaries?’ will be asked. Also income & whether you are in receipt of means tested benefits is important as this will reflect on which equity release schemes are advised upon. The equity release consultant can then document & record this stage of the lifetime mortgage process.
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Once an accurate financial picture has been ascertained & observed the clients objectives, the equity release adviser can then discuss the mortgage options available. These would include an explanation of the various schemes available to suit. Included in this would be roll-up equity release schemes, home reversion plans & interest only lifetime mortgages such as the Halifax Retirement Home Plan or the Stonehaven Interest Select.
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You do not have to give them an instant decision; after all, going for an equity release scheme is a big decision and something which should not be rushed into.
Upon presentation of the equity release advisers recommendations a Key Facts Illustration must be offered to you. This would include a summary of the scheme in principle, costs & charges, future balance & the commission payable by the lifetime mortgage providers. This is quite a comprehensive overview of the scheme & covers the finer details, as well as the main features, such as the no negative equity guarantee & early repayment charges etc.
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Once you have made your decision, all you have to do is simply call your advisor and give them the go ahead. They will have all your paperwork taken care of, contact your solicitor and keep you updated about everything, right to the time that you get your money released.
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A professional & courteous adviser will confirm the funds have been released & offer any after care service in the future; for example when additional funds are required such as on a drawdown equity release scheme.
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As a company Equity Release Supermarket keep contact with its clients to advise on new products & interest rates in the future as it is important to keep abreast of the market as & when more competitive products become available.
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Independent & award winning equity release specialist Equity Release Supermarket offer all the above benefits & quality of service that the testimonials at the bottom of the home page illustrate.
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To discuss your options in the release of equity from your property call freephone 0800 678 5159 today or alternatively complete our contact form & one of our advisers will be in touch
Tags: drawdown equity release, equity release, Equity Release Adviser, equity release schemes, equity release solicitor, home reversion, independent, Independent equity release advice, interest only mortgage, lifetime mortgages, No negative equity guarantee
Posted in Advice, Equity Release, Halifax Retirement Home Plan | No Comments »
Friday, June 17th, 2011
Equity release is used as a term for schemes that help a homeowner to secure a good amount of money from their main residence. These schemes provide homeowners with an option to use their property to release money. It becomes hard for people who retire after a certain age and do not have funds to support their needs. Equity release schemes provide an option for people who live on pensions and are unable to support themselves or maybe wish to increase their lifestyle options with a new car or holidays. It therefore helps provide an extra flow of money to fulfil their needs & retirement enjoyment.
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Equity release has become very popular among citizens who are over the age of 55. There are an increasing number of retirees opting for these equity release solutions. Equity release UK schemes offer retirees an opportunity to generate money from their property, either a lump sum amount, timely earnings, or in some cases, both. Retirees can remain living on their property unless they decide to move out at which point the equity release plan becomes repayable. The equity release providers will usually require repayment of the balance within 12-18 months by the beneficiaries. This gives the executors of the estate plenty of time to achieve the best sale price on the property to cover the debt & maximise the inheritance for the beneficiaries.
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The value of your property and your age are the key factors in the data used in equity release calculator formula. There is no age limit as far as equity release is concerned. The older you are, the more you can generate out of your property. This scheme is accessible for people who are over fifty five years and own their property which usually should be of standard construction & freehold, or leasehold with more than 75 years left remaining on the lease.
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Halifax Retirement Home Plan is one such scheme which helps people to extract money out their property. It is a type of interest only equity release lifetime mortgage plan where the borrower pays a sum of money to the lender on a monthly basis. It is a useful and easy plan which suits the needs of all perfectly. As mortgages for pensioners seem to be difficult to come by, the Halifax equity release scheme has become a breath of fresh air to many people in retirement. They can be safe in the knowledge that the balance will not increase as long as the payments of monthly interest are maintained.
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This is an interest only lifetime mortgage which means there is no set term & these equity release schemes will run for the rest of their lives. As long as too much equity is not taken from inception on the Halifax Retirement Home Plan then if there comes apoint in the future that the monthly payment should cease, then repayment by a roll-up equity release plan could always take effect.
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There are many options today that assist pensioners to take equity release from their property, however to ensure which scheme is the correct one for your circumstances contact a professional & qualifies advisory service.
Award winning Equity Release Supermarket have advisors local to you who can provide quality & friendly service to guide you through the equity release decision making process.
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Call the equity release team today on 0800 678 5159 for your free initial consultation.
Tags: equity release, Equity Release Adviser, Equity release calculator, equity release schemes, Equity Release Supermarket, halifax equity release, Halifax Retirement Home Plan, lifetime mortgage schemes, lifetime mortgages, pensioner mortgage, Roll up lifetime mortgage
Posted in Equity Release, Halifax Retirement Home Plan | No Comments »
Tuesday, June 14th, 2011
Retired homeowners can now safely make plans for their future with the help of an equity release scheme.
There are a number of equity release schemes available today in the market. Some of these are:
- Interest only mortgages
- Lifetime mortgages
- Home income plans
- Home reversion
Amongst these schemes, the interest only mortgage is very popular. It can either have a fixed or tracker rate of interest which is to be paid at the end of every month. Interest only mortgage schemes have gained popularity in recent times.
This scheme is highly suited to people who are retired and it can help them in their old age. Those retirees who are opposed to the roll-up effect of conventional equity release schemes, can find solice in these interest only lifetime mortgage schemes. The reason being is that the balance will always remain the same & never increase, thus protecting any beneficiaries inheritance.
The interest only mortgage scheme is considered as the safest option by many people. It promises a fixed capital lump sum to spend on anything they wish in retirement.
In other plans such as home reversion, one sells all or part of the property & can thereafter live rent free in the home for the rest of their lives. These schemes do not start until age 65 & now only account for 3% of all equity release plans taken out.
It should be noted that none of the interest only schemes put the retired person at a risk to lose their right to live in their property. However, monthly payments must be maintained in order to not default on their mortgage. Obviously, these interest only mortgages always come with the health warning – Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Should you have any questions on lifetime mortgages, home reversion schemes & interest only mortgages please contact the Equity Release Supermarket advisory team on 0800 678 5159 or alternatively email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, Equity Release Supermarket, Halifax Retirement Home Plan, home reversion, home reversion plans, home reversion schemes, interest only mortgage, lifetime mortgage schemes, lifetime mortgages
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Tuesday, June 7th, 2011
Equity release schemes have become extremely popular amongst retired individuals due to their myriad of benefits. The most notable benefit of these form of lifetime mortgage is that you do not have to move out of your home to get equity from your property & you have no monthly mortgage payments to make. Similar to any other financial scheme, it is important to consider your needs and requirements before you arrive at a decision.
Mentioned below are some important factors that you need to understand before selecting an equity release scheme.
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No negative equity guarantee
Most equity release schemes have a no negative equity guarantee provided free of charge & automatically incorporated into any SHIP equity release plan. A no negative equity guarantee will ensure that your outstanding debt will never exceed the overall value of your property. At the same time, any outstanding debt will not be transferred to your family after you pass away. Therefore, your beneficiaries can be safe in the knowledage that by you taking equity now, will not make you pay for it later.
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Moving to a new property
It should be noted that moving to a new property is permitted by the equity release provider you choose to go with. However, as long as the property you are moving to is of standard construction & if leasehold has a lease still in excess of 75 years then it should still be possible to transfer your scheme. Because of this reason, it is recommended to look for a reutable equity release scheme that caters to your specific needs.Again, all equity release schemes that are members of SHIP (Safe Home Income Plans) must have this facility to transfer the mortgage built within the terms.
If you are looking to downsize, then a repayment maybe required to bring the amount riased in line with the equity release providers loan to value. This amount would usually come from the equity that has been raised by downsizing so there would be no need for alarm. Additionally, as you are making some form of repayment, then NO early repayment charge would be applied by the lifetime mortgage provider.
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Criteria
It should be noted that you will need to meet the equity release companies criteria to become eligible for equity release schemes. For starters, you need to be at least 55 years of age & own your own home. At the same time, the market value of your home should be at least £60,000, although some equity lenders do impose higher valuations so check beforehand. Ensuring you meet these criterion’s will help if you are planning to opt for one of best equity release plans.
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However, help is always on hand. Therefore to establish whether equity release is the correct path for you to follow then speak to the specialists at Equity Release Supermarket. Call freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, lifetime mortgage schemes, lifetime mortgages, No negative equity guarantee, SHIP
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