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Equity release is a relief to your retirement problems

Tuesday, September 14th, 2010

Many individuals still are still taking financial issues into their retirement. We are all aware of the issues that have dogged the pensions industry over the last decade or two. With the decline in final salary schemes & corresponding members of such schemes, retirement that ensures a safe and constant source of income is a worrying concern.

To solve such pension shortfalls & the financial problems in retirement this causes, equity release schemes have been introduced.

Some facts about equity release schemes

Before opting for equity release, you need to know some important facts about it.

Payments received

You are paid by the equity release lender for the property you mortgage. This money can be paid as a lump-sum amount or as a monthly income. The type of payment to be received depends on the applicants choice. Monthly payments are the constant income that works exactly like a monthly salary. A lump sum payment is when you can retain the complete value of your property at one time. This type of payment can help you to invest in another property, maybe a holiday home for yourself or a deposit on a new property for your children. People who use an equity release scheme as an additional form of income choose to receive the payment as a regular lump-sum amount.

Repayment of loans

Roll-up equity release schemes have a unique benefit. They allows you to maintain the complete ownership of your property for your lifetime. You can enjoy complete rights over your property even after mortgaging it without worrying about the repayment at all. Interest is added annually to the actual amount till the loan is repaid.

On the other hand, a home reversion scheme allows you to sell your property and then receive the money. In this case, you do not have to pay anything in return later on. The loan should be paid within a period of 6-12 months.

Should you require further advice or quotations on lifetime mortgage or home reversion schemes please contact Mark Gregory on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk

Tags: equity release, Equity Release Adviser, equity release schemes, Home Income Plans, home reversion, home reversion schemes
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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.
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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

Tags: equity release, equity release schemes, Home Income Plans, home reversion, home reversion schemes, interest only mortgage, roll-up scheme
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Equity Release – value for your possessions

Wednesday, August 11th, 2010

Equity release is money you receive for your home without having to sell it. It is nothing but a value for your house which you receive in the form of tax free cash.

Equity release can be paid as one lump sum or on a more regular basis.

Regular income

Cash which is received on a monthly basis is treated as regular income. This regular income can be used in a similar way in which you use your salary. This proves to be a beneficial option for retired people. They do not have to depend on anyone for their basic needs and can spend this extra income on leisure activities or by utilising a drawdown equity release scheme they can use it to provide additional payments in the future.

Investment

The lump sum payment allows a person to use it as they choose. This money can be used for investment purposes of which the main one is in a further property. This could be to buy a caravan or a second property for rental or holiday purposes. More commonly it is being used to assist children to get on the housing ladder by way of gifting them the deposit.

Financial security in old age

Equity release is a way to protect you financially in old age. A higher percentage of the value of your home is paid to older people. The equity release loan is paid only to the title owner of the property.

Tags: drawdown equity release, Home Income Plans, impaired life, income plans
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Plan your retirement effectively with an equity release scheme

Wednesday, July 28th, 2010

If you want to secure your retirement life financially then equity release should be a major consideration.

The important feature of today’s equity release schemes is that they allow you to unlock money against the value of your property without you having to move.

By opting for an equity release plan, you can get a tax free cash lump sum or you can select the regular income option. Your independent equity release adviser will guide you as to the most suitable equity release plan based on your individual requirements.

Today, many homeowners who are above 55 years of age prefer to use an equity release scheme to boost their income. To qualify for equity release, you have to own a home with a value of more than £70,000. You should have little or no mortgage in order to qualify for these equity release schemes.

The many features of equity release schemes

Equity release schemes are basically divided into two main types such as:

• Lifetime mortgages
• Home reversion plans

Both the above mentioned equity release schemes allow you to get cash against the value of your home or property without you having to leave it. During the life of the equity release scheme there are no monthly payments to be made. Instead, the interest being charged is added to balance of the equity release on a yearly basis. It will therefore compound interest over the years at a fixed rate which remains the same for life.

The repayment is eventually made by selling your home when you die or move to long term care. Equity release schemes are perfect for homeowners who do not have any family as there is no as much reliance on how much equity remains at the end of the day.

Apart from above mentioned benefits, equity release schemes also offer tax-free cash which can be used to spend as you wish. There are no restrictions on how you decide to spend the money.

This means that you can buy a car, a second home, new suite & many other home improvements. One of the most popular reasons for equity release currently is to consolidate outstanding debts which has the effect of reducing monthly outgoings & thereby increasing disposable income in retirement. Click here so see examples of how Equity Release Supermarket clients have spent their equity release funds.

However advice should always be obtained in order to establish the best way of fulfilling your requirements. There are many ways of releasing equity from your property & this is where independent financial advice from an Equity Release Supermarket adviser can save you thousands of pounds by having the choice from the full range equity release schemes.

Call the Equity Release Supermarket team today on 0800 783 9652 or visit the market leading equity release website at http://www.equityreleasesupermarket.co.uk

Tags: equity release, equity release schemes, Home Income Plans, Home Income Schemes, home reversion, home reversion schemes, Independent equity release advice
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