Posts Tagged ‘interest only mortgage’
Friday, January 6th, 2012
Products come, & products go; & we have seen the evidence of this by the unfortunate withdrawal from the mortgage market in August 2011 of the Halifax Retirement Home Plan.
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The global financial crisis has been challenging for many, and retired people or those looking to retire have seen a large amount of value disappear from their pensions. This can be stressful and causes worry, but finance options are still available for those looking to supplement their retirement. Equity Release Supermarket has access to market leading interest only mortgages which are available only to people over the age of 55 & looking for ways to finance their retirement.
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An example of such is the interest only lifetime mortgage is the Stonehaven Interest Select Plan. This is a unique and innovative option for many looking for additional financial relief in their retirement, but mindful of any inheritance that they wish to pass onto the heirs. Thus pensioner mortgages are now fully available to anyone over 55 & owning their own home.
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The innovative Stonehaven Interest Select equity release scheme is unique among interest only mortgages as the total outstanding balance does not change. Instead of the interest rolling up like traditional equity release schemes, the interest on the Stonehaven Interest Select is paid monthly by direct debit. This is often done by the customer, but can be funded via the children or potential inheritors who are looking to keep the amount of debt on the property asset under control.
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The great thing about the Stonehaven Interest Select equity release scheme is that the total amount of debt is managed for the duration of the interest only lifetime mortgage, making it a great financial product for those looking for interest only mortgages that don’t continue to eat into the ownership of the asset.
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Due to this controlled nature, the Stonehaven Interest Select mortgages are fixed interest rate lifetime mortgages, the security of which many find appealing.
Stonehaven also provides a no negative equity guarantee, so even if the financial crisis worsens; there is no risk that a burden of debt will be passed on in the inheritance. These are two features which should be discussion points on any kind of interest only lifetime mortgages, as they provide important security and peace of mind.
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Many people struggling to make ends meet during this financial crisis will be looking for ways to finance their retirement in a controlled fashion. Extra capital can really help to ensure that retirement is financially secure. At the same time, those looking for equity release schemes might be looking for control over how much value is traded for this additional security. Their research journey could start with the roll-up lifetime mortgage option, unaware that they are still eligible for an interest only mortgage even into retirement. Therefore, do not fall into the trap that some equity release brokerages will not advise this type of scheme is available. They may receive higher commission levels than payable by other companies, & this should not sway their advice.
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Thats why approaching Equity Release Supermarket you will always receive comprehensive equity release advice; impartial & quality recommednations from experienced industry advisers.
They will discuss all your equity release options available, and endeavouring to find the right equity release solution for you. However, if your priority is to control the amount of equity that is being released from your main asset, then the Stonehaven Interest Select plan is THE innovative option to consider.
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For further details on Stonehaven equity release plans please call Mark on freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk.
Tags: equity release, Equity Release Adviser, Equity Release Supermarket, halifax equity release, Halifax Retirement Home Plan, interest only lifetime mortgage, interest only mortgage, lifetime mortgage schemes, lifetime mortgages, No negative equity guarantee, Stonehaven, Stonehaven equity release, Stonehaven interest select
Posted in Interest Only Lifetime Mortgage, Stonehaven Interest Select | No Comments »
Wednesday, December 21st, 2011
What is an interest only lifetime mortgage? Well there are many reasons to look into interest only lifetime mortgages in order to meet the financial challenges in our current economic climate.
An interest only mortgage should always be considered before a roll-up equity release or home reversion plan. If you are looking towards protecting your inheritance & wish to pass the full estate to your beneficiaries then an only interest mortgage will do as it says on the tin. By borrowing a fixed amount & repayment of just the interest element will mean that the balance will remain exactly the same.
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Example of an Interest Only Lifetime Mortgage
The interest only lifetime mortgage is an especially useful product for those over 55, as there are specialist equity release style interest only lifetime mortgages available. Often these plans provide historically attractive interest rates and features that assist those in retirement to plan their financial futures. Consider Stonehaven equity release, who offer several forms of their Interest Select Plan which is effectively a non-verification lifetime mortgage. With this plan you can effectively borrow a percentage of the value of the property & you can chose how much of the interest to pay – starting from £25pm upto the full interest payment.
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What Purposes can it be used for?
Many people who are looking to consolidate debts will find the Stonehaven Interest Select style of interest only lifetime mortgage to be an attractive option for getting all debts under one single interest only payment. This kind of debt consolidation means that the actual total amount borrowed and paid monthly is thereby reduced & hopefully under control. Additionally, the lower interest payments are likely to be less than payments made over many other debts due to the considerably lower interest rates charged by credit card companies & alike.
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Overall, this makes the payment of debts easier, as Stonehaven will automatically take payment by direct debit, and easy to plan as the total amount is taken monthly. The fixed interest rate option on an interest only mortgage is a very attractive offer. This means that regardless of the Bank of England manipulating conventional interest rates, the Stonehaven interest select plan will always remain exactly the same. For this reason and these features, is why the Stonehaven Interest Select and Stonehaven Interest Select lite (has lowest fixed interest rate at 6.13%) are so popular. More details about these plans can be found on the Equity Release Supermarket website.
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Are Alternative Equity release Schemes Available?
There are alternative options available for those looking for equity release schemes, including other options for interest only lifetime mortgages. These could depend upon location such as Scotland & certain counties within England where we have access to specialist lenders. It is therefore important to discuss what is right for you with an accredited independent equity release advisor who has access to the whole of the equity release & interest only mortgage market.
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Another place to research equity release schemes and interest only lifetime mortgages is the Safe Home Income Plans (SHIP) website, which acts as a consumer safety watchdog for elderly financial products. The Stonehaven equity release products are all registered with SHIP, so these products also come with this important peace of mind. They also have the protection of being regulated by the Financial Services Authority (FSA) thereby coming under the auspices of their compensation scheme.
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There are many reasons for those over 55 years of age to consider equity release. Many often wonder what is an interest only mortgage? They also wonder what the best options are for their specific needs and situation. While a financial advisor is best placed to help, researching SHIP qualified products like the Stonehaven Interest Select interest only lifetime mortgages often help get started.
The Equity Release Supermarket website is also a useful place to start learning about the ‘ins and outs’ of equity release. There is a lot to learn, so be sure to speak to one of our specialist financial advisers as early as possible and often to be clear about the direction your enquiry is heading.
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Call our Freephone number 0800 678 5159 for further details on Interest Only Lifetime Mortgage Plans.
Alternatively, follow this link to request a Stonehaven equity release quote.
Tags: equity release, FSA, interest only lifetime mortgage, interest only mortgage, lifetime mortgages, SHIP, Stonehaven, Stonehaven equity release, Stonehaven interest select
Posted in Interest Only Lifetime Mortgage, Stonehaven Interest Select | No Comments »
Thursday, December 8th, 2011
The current global financial crisis has affected everyone in many ways. For those who have retired or were planning to retire, the credit crunch and related crash in the markets have wiped £billions from pension funds. For many, savings and pensions that were once thought to provide a strong foundation for retirement have been compromised, and these people will need to supplement their pensions with other financial products.
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A great option for these people is to look into equity release schemes. A great place to start researching how best to conduct the release of equity from their property is to start with equity release calculators; also known as lifetime mortgage calculators. These online tools are very helpful for providing basic information to start a discussion over the potential options available for those looking for equity release schemes and products.
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The equity release calculator, or lifetime mortgage calculator, is the first stop for many researching equity release schemes. The great thing about these easy-to-use online tools is that they provide an idea of what is possible. This popular online equity release calculator does just that.
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The equity release calculator asks for the age of the youngest homeowner. This is important, as equity release schemes are only available to those over the age of 55, and age bears an important part of the value of equity release. The value of the property is also required, for obvious reason as equity release schemes are generally based on the principles of the interest only home mortgage.
If there is any other mortgage or loan that uses the property asset as collateral, the outstanding value of these should be included as well, as they affect the overall value of what is available in an equity release scheme. Therefore any existing security on the property such as a mortgage or secured MUST be paid off prior to completion. This is usually resolved by using monies from the equity release itself, as the process can be completed by a simultaneous transaction at the solicitors.
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The first option presented through this equity release calculator is for the most common and standard plan. This is based on a person in good health, starting from age 55. For those who have suffered from ill health may be entitled to an enhanced lifetime mortgage programme. The total potential maximum amounts for each health option is listed for each. The equity release calculator provides a clear understanding of what the boundaries of the financial package will look like. Then it is a matter of discussing what the options for finance are within that value. The calculators will provide a maximum release of equity figure. Bear in mind this should not always be an indication of how much should be taken. Best advice would be to plump for the optimum amount based on your requirements instead.
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Alternative options than roll-up equity release schemes could include an interest only home mortgage, or a more specialist Stonehaven interest only mortgage scheme. The equity release calculator is linked to an accredited financial institution, so it is possible to start discussing that figure right away with a financial expert. However, for those looking to shop around, the figures will be helpful in their research.
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The calculator noted above is a lifetime mortgage calculator, and is tailored toward those specific kinds of equity release schemes.
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Home Reversion Plans have different criteria which include more details about the gender of the applicant and his or her state of health. Both have an important impact on this kind of equity release product value.
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The current global financial crisis has been hard on pensions, and many who thought they had enough money stored in savings and pensions are now looking for alternative financial supplements for their retirement. Equity release is one such supplement, and equity release schemes can really help those looking for a release of equity from their property investments, without having to sell.
This allows the property assets to remain in the inheritance chain, but still provides a way of recovering some of the value in the asset for today’s needs – in the form of an interest only mortgage or other financial solution. A great way to start on the search for the right equity release product is through the use of equity release calculators which show the monetary options available.
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To discuss your retirement mortgage queries, please contact the Mark on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Equity release calculator, equity release calculators, equity release schemes, interest only mortgage, Stonehaven
Posted in Calculator | No Comments »
Tuesday, November 15th, 2011
Since its withdrawal in August 2011, the Halifax Retirement Home Plan has certainly left a void in the post retirement mortgage market. What options remain for pensioner mortgages?
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Pensioners, who were proposing to use the Halifax Retirement Home Plan at a future date, unaware of its impending withdrawal, have now had their retirement plans severely disrupted.
Enquiries are still being received from retirees looking for a pensioner mortgage which can be used for a variety of lifestyle solutions.
With options from moving house, to holidays, gifting to children & home improvements, there has been a significant reduction in the interest only mortgage options available.
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So why was the Halifax Retirement Home Plan Withdrawn?
Enormous demand for the Halifax Retirement Home Plan apparently consigned the product to its own demise. Success is not usually associated with dramatic failure, but it seems the Halifax Retirement Home Plan was in this case, a victim of its own success.
Given the volume of applications Halifax was receiving, even a lender the size of Halifax was struggling with such popularity. Towards its latter days the Halifax back office systems were choking, solicitors being incorrectly instructed & timescales reaching unacceptable levels, so much so that Halifax have actually compensated clients due to administrative errors.
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Reasons for the Halifax Retirement Home Plan’s Popularity
Since the products inception in July 1984, the Retirement Home Plan lay hidden in Halifax’s mortgage book for many years.
However, certain intermediaries specialising in equity release, subsequently understood the product had a role to play in providing best advice & offered an alternative to roll-up equity release schemes.
Not everyone is suited to a lifetime equity release scheme where the interest rolls up & compounds annually for the rest of their lives. Roll-up schemes to some pensioners can prove off extremely off-putting, with the balance approximately doubling every 10-11 years. The resultant effect & the impact of the compounding of interest will be that their beneficiaries will receive a significantly lower or completely eroded inheritance.
Therefore, for retirees who did not want this scenario, the interest only lifetime mortgage proved an excellent alternative. Obviously supported by a good secure disposable income, the Halifax monthly mortgage payments could be fulfilled, with the resultant effect of keeping the mortgage balance exactly the same for the remainder of the mortgage term.
However, the doomsday scenario did eventually arrive & the Halifax Retirement Home Plan was pulled on 17th August 2011 at very short notice.
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Regulation & the FSA Effect
With the FSA (Financial Services Authority) now imposing stricter regulation on interest only mortgages, this has impacted on the whole post retirement mortgage market.
Regulation here should be reviewed & consideration given to the plight of pensioners.
Over 60’s looking for finance have fixed income for life.
They are already drawing their state, private & occupational pensions.
They are therefore in receipt of a guaranteed income for life.
They can’t be made redundant, be off work due to sickness or take maternity leave!
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Additionally & historically the retired generation of today have a different attitude to credit & tend to err on the side of caution. They have benefitted from house price booms of the last decades & consequently on the whole have a great deal of equityto release in their properties.
From a lenders perspective you can’t get much better security than this?
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So why are the over 60’s being penalised?
After discussions with various lenders their defence has supposedly been the fragility of repayment. Considering monthly mortgage payments are paid by direct debit & pensions & retirement incomes are paid directly into the bank account, this doesn’t seem to hold true?
The distinction should be therefore be made between the people pre retirement & those post retirement with regards to interest only mortgages.
The FSA has understandably clamped down on first time buyers & mid life mortgagors taking out interest only mortgages with NO repayment vehicles. However, this has been to the detriment of pensioners whose cause has been undermined.
So for now we have to accept the level of caution in the mortgage market. However, moving forward consultation & consideration should be given to this corner of the mortgage market as it can have additional benefits to a fragile economy. The reason being is that pensioners releasing equity in retirement do so mainly for lifestyle reasons:-
- home improvements
- deposits for the children
- holidays
- new car/caravan
All these expenditures for one reason or another will help boost both the local & national economy.
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What Interest Only Pensioner Mortgages Are Currently Available?
The aforementioned issues have arisen with the tightening of interest only criteria. Lenders will now insist on most mortgages expiring by age 75 & this will usually have to be on capital & repayment basis. More often than not this will result in the monthly cost being prohibitive, as paying off a mortgage of £50,000 over a short term of say 10 years can be out of most people’s affordability levels!
Nevertheless, a specialist equity release lender has analysed the situation better than most & hence we unveil the Stonehaven Interest Select Plan.
Offering SHIP security & choice as to the size of the monthly contribution, Stonehaven have covered all bases. This interest only lifetime mortgage provides lifetime fixed interest rates starting from just 6.13% thereby offering affordability now & into the future. With pension incomes rising over the years, but the monthly mortgage payments guaranteed to remain the same, the Stonehaven interest only equity release plan provides protection from future increases in interest rates.
However, it doesn’t end there because if financial difficulties do arise then there is always the option to switch it over to a roll-up equity release plan with Stonehaven. No further payments are then required & dependent upon whether the switch was planned ahead or not, will determine whether an extra 0.2% is added to the rate.
Stonehaven are members of SHIP & regulated by the FSA.
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Rumour has it that niche lenders are now starting to look into pensioner mortgages & eyeing business opportunities, so there does seem to be light at the end of the retirement rainbow!
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If you wish to make an enquiry on the Stonehaven Interest Select call the Equity Release Supermarket team on Freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, interest only lifetime mortgage, interest only mortgage, lifetime mortgages, SHIP
Posted in Interest Only Lifetime Mortgage | No Comments »
Thursday, August 11th, 2011
It is with regret that we are notifying all our Equity Release Supermarket enquirers that the Halifax Retirement Home Plan is being withdrawn with effect from the close of business on Wednesday 17th August 2011.
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After this date NO further applications will be accepted onto this scheme.
Therefore, to take advantage of this plan all applications must have been submitted by 8pm on the evening of the 17th August 2011.
There is some good news for existing retirement home plan mortgage customers in that they will remain unaffected & their terms & conditions will remain in accordance with their mortgage deed.
Post 17th August, no further applications will acceptable & this will be the last chance to gain access to this unique pensioner mortgage.
With further options for interest only lifetime mortgages remaining limited, act now to secure a last minute place on the Halifax Retirement Home Plan scheme.
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To make a last minute enquiry call the Equity Release Supermarket team immediately on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: Halifa retirement home plan mortgage, halifax equity release, Halifax Retirement Home Plan, Halifax Retirement mortgage, interest only lifetime mortgage, interest only mortgage
Posted in Halifax Retirement Home Plan, News | No Comments »
Thursday, July 21st, 2011
Halifax equity release is a good option for retired individuals who want to live a tension-free lifestyle after retirement. Unlike traditional mortgage plans, Halifax equity release is specially designed for individuals who are looking for home safety along with a better lending choice. This mortgage option can be used to raise equity from your property if you are over age 55 & are now in receipt of retirement income.
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The money raised through the Halifax equity release mortgage can be spent the way you want. So, irrespective of whether you want to go on a holiday, exotic cruise or make home improvements, opting for equity release can be great at meeting your financial needs.
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With inflation constantly on the rise & budgetary constraints we are all facing currently, retired individuals also are facing a lot of problems coping with their finances. However, there are certain requirements one needs to fulfil in order to qualify for Halifax equity release schemes. For instance, applicants must be above 55, retired and possess property of their own. The amount of equity one can release through this scheme depends on the age, pension income & the market valuation of their property.
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So, if you are planning to go for Halifax equity release, it is always better to ensure that your property is well-maintained. Additionally, if you have a current mortgage on your property this will need to be repaid on competion of your new Halifax retirement mortgage. This will be paid for from the proceeds of the Halifax application & will be redeemed by the solicitor acting on your behalf. Therefore, whenever the interest only mortgage calculations are made the existing mortgage figure should always be taken into account.
The good news however, is that if you do have a current mortgage, no matter the size, & remortgaging to the Halifax Retirement Home Plan then there are some excellent deals available. As of July 2011, Halifax remortgages will provide a FREE valuation, FREE standard legal fees & on some products we can even obtain NO application fee.
As there are different Halifax equity schemes available today, you must carefully research your options. This way, you can go for one which suits your needs & receive advice from an independent equity release adviser who can provide you with best advice from the whole of the market.
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If you wish to discuss the current Halifax Retirement Home Plan deals via Equity Release Supermarket contact the team on freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Halifax, halifax equity release, Halifax equity release schemes, Halifax Interest Only Mortgage, Halifax Retirement Home Plan, Home Retirement Plan, interest only mortgage
Posted in Halifax Retirement Home Plan | No Comments »
Sunday, June 26th, 2011
Ever wondered what you will do after retirement? Taking a cruise around the world, completing those home improvements you always intended to make or enjoy helping & seeing the grandchildren would be a few of the options that many of us have thought about. One thing that we need to consider is our financial situation and market volatility after we retire. The money earned from our pension is not usually always enough to live on.
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We therefore need to look at how this pension income can be supplemented in a manner that can utilise one’s assets. An increasing common method is retiree’s opting for the Halifax Retirement Home plan & this has proved to be a wise & life changing option for many.
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So what is the Halifax Retirement Home Plan?
In essence the Retirement Home Plan is a way of providing some extra cash for pensioners. It provides low cost mortgage finance for people who have retired. In other words, it is different from equity release as it works in a similar way to an interest only mortgage scheme. Therefore, the terminology used to describe this product is an interest only lifetime mortgage.
You can use the money released to make improvements to your home or use the money to buy the car of your dreams. The Halifax Retirement Home Plan is an income based scheme, which includes income from pensions, disability benefits & in certain circumstances from rental income.
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Even though the eligible age required to qualify for the scheme is 65 years, this age can be negotiated upon as the scheme is based on your method of income. Therefore, flexibility can be established if you are over 55 years old & retirement income is already being drawn. There is no upper age limit on this Halifax equity release scheme. In fact we have recently completed an application for a client who is age 93 attained!
There is a minimum limit of £15,000 set on the amount which is released for the plan, but the maximum amount varies due to the affordability of an interest only mortgage calculation.The affordability calculator will require the input of all retirement incomes for both parties in association with amount required & the applicants credit rating. The result provides accurate figures as to how much can be potentially borrowed on this scheme. The overall maximum would always still be 75% of the property value & this loan to value can never be exceeded, even if income would normally calculate beyond this.
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Unlike equity release, the Halifax Retirement Home Plan requires a regular monthly payment of interest. The balance usually always remains the same. as long as the monthly payments are met on time. This compares favourably with equity release schemes where the balance increases over a period of time.
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Halifax interest rates currently start from as little as 2.44% on their 2 year tracker deal resulting in a Halifax Retirement Home Plan mortgage of £50,000 costing only £101.67pm (4.1% APR)
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The Halifax Retirement Home Plan is a great way to obtain tax free capital that you have worked long & hard for thus resulting for many to a long & happy life.
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To find out if you qualify, please call us today on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: Halifax, halifax equity release, Halifax interest rates, Halifax Retirement Home Plan, interest only lifetime mortgage, interest only mortgage, lifetime mortgages
Posted in Halifax Retirement Home Plan | 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 »
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
Posted in Equity Release | No Comments »
Sunday, May 29th, 2011
The Halifax equity release scheme is an interest only lifetime mortgage plan. It is specially developed for retired individuals to boost their retirement standard of living. With this type of scheme, the outstanding balance remains unchanged throughout the plan tenure. The applicant only needs to pay interest regularly to the lender.
Traditional roll-up equity release schemes do not require the applicant to make interest payments. However, the interest keeps rolling up over the tenure period. This means that the outstanding loan keeps rising all the time. With the present interest rates, the loan amount will keep doubling after approximately every 10-11 years dependent upon the equity release interest rate. This means, if you have a loan of £10,000, after 10-11 years, you will owe £20,000.
Retired individuals, who can afford to make monthly repayments from their state benefits or pension, should opt for a Halifax equity release plan. While considering opting for equity release, it is important to get the right advice from the professionals. As professionals have the required knowledge and expertise, they can help you get the right scheme that will cater to your needs.
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Why do people opt for a Halifax equity release plan?
The Halifax equity release scheme, being an interest only mortgage plan for pensioners, does not require any form of repayment. This is also one of the most exclusive features of the Halifax equity release plan. With this kind of scheme, your mortgage is automatically allocated for a term of 40 years. However, should you live longer than this period then this lifetime mortgage plan will continue until death or the last person has moved into long term care.
It is due to these reasons that the Halifax equity release scheme has become extremely popular amongst retired individuals.
Contact the mortgage desk on 0800 783 9652 or email admin@equityreleasesupermarket.co.uk for the latest rates & information.
Tags: equity release, Halifax, Halifax Retirement Home Plan, Home Retirement Plan, interest only lifetime mortgage, interest only mortgage, lifetime mortgage schemes, lifetime mortgages, mortgages for pensioners, pensioner mortgages
Posted in Halifax Retirement Home Plan | No Comments »
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