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Posts Tagged ‘Home Income Plans’

Various Equity Release Schemes For Retired Homeowners

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

 

Equity Release Schemes – An Important Part Of Your Retirement Planning

Friday, October 29th, 2010

Equity release has been around for quite a long time and is available in different forms. Due to the important role it plays in retirement planning, equity release has gained plenty of attention these days. Unlike traditional schemes, equity release is one of the best tools for generating income after retirement.

Equity release schemes are described in many different ways, as home income plans, lifetime mortgages or home reversion. Essentially, every scheme offers a mechanism to release the equity you have built up in your property. Equity release offers you a way to release some of the value of your property during retirement when you need it the most. By opting for an equity release scheme, you will not need to move out or sell your property in order to gain the benefit of the equity tied up within it.

 

Enhance your life during retirement with equity release

Equity release can be the best option for individuals who need extra money to give a boost to their spending power to cover their cost of living. Homeowners over 55 years of age can apply for equity release.

Unlike traditional mortgages, equity release schemes do not require you to make routine repayments. If you are using an equity release scheme to consolidate debt, you must know that you will be taking an earlier unsecured debt to secure against your property. If you are looking for a way to generate income during your retirement, an equity release scheme can be an alternative solution as a means of topping up your retirement income.

 

To discuss any issues raised, please contact the Equity Release Supermarket team on 0800 678 5159

 

Boost Your Income During Retirement With An Equity Release Scheme

Tuesday, September 7th, 2010

Equity release is different form of finance to the usual bank loans and mortgages. The main reason for this is because NO monthly payments are required & also as it provides money against the value of your home with the allowance of you continuing live in it. If you are a homeowner and over 55, then equity release is an ideal option for you. With the help of equity release schemes, you can financially secure your retirement.

By opting for equity release, you can potentially receive a lump sum or regular income. To qualify for equity release, the value of your home must be over £70,000 & located in the United Kingdom. The countries within the UK vary between the equity release companies. However, they will all offer equity release in England & Wales, whilst some will only lend in Scotland & Northern Ireland. Again, some will offer equity release schemes on the Isle of Wight & only some on the Isle of Man, therefore to ascertain availability please ring freephone 0800 678 5159.

Due to different requirements, equity release schemes have been introduced onto the market. A home reversion plan is one the 2nd most popular scheme and is offered currently by four financial institutions within SHIP.

 

Home reversion plans

Under a home reversion plan, homeowners can release money against the value of their property without worrying about monthly repayments. By opting for home reversion plans, you can sell a part or all of your property. You (& any partner) need to be a minimum age of 65. Better terms for the home reversion schemes are obtained once you have both surpassed age 70.

Even after selling part of the property, you can continue living there but the legal owner will be yourself & the financial institution. If you decide to sell 100% of the property value then the reversion company will have sole ownertship of the property, leaving no inheritance for any beneficiaries.

Different applicants will be eligible to release different amounts of money against their home. One of the major factors which affects the equity is the age of the homeowners. Also, the value of the property plays an important role. It is therefore a conbination of these factors that govern the amount you can release. Another important influence is health as there are now equity release schemes that will consider impaired life applications.

 

Other than home reversion plans, you can also opt for lifetime mortgages or home income plans to release money against your property. Contact an independent equity release specialist such as Equity Release Supermarket who with their experience will guide you in choosing an appropriate equity release scheme.

 

To obtain the services of one of the Equity Release Supermarket team email admin@equityreleasesupermarket.co.uk

 

Want To Generate Income During Retirement?

Friday, August 6th, 2010

As many people in the UK find it hard to maintain a good living, equity release schemes are becoming extremely popular.

Equity release schemes are specially designed for elderly people between 55 to 95 years of age. With an equity release scheme, homeowners can either get a lump sum amount or regular income.

The beauty of equity release schemes is that homeowners can continue to live in their property for their lifetime. When the homeowner passes away, the beneficiaries will sell the property with the lender being repaid from the sale of the property. Once sold, any remaining equity will be passed to the beneficiaries named in the Will, if one has been made. Should the equity release plan holder die intestate, then the net proceeds will be paid in accordance with the rules of intestacy. This happens if the property is sold for a considerably larger amount than what the balance of the equity release is.

 

Different options of equity release schemes

The reversion companies offer equity release schemes with different options such as tax free lump sum and home income plans. Home income plans are perfect for senior citizens who want their money in the form of a pension. The amount of equity released is distributed as income or pensions for the rest of their life. This would be in the form of an annuity, which is basically exchanging a lump sum in return for a regular income for the rest of your life.

In such cases, if the equity release applicant has poor health then impaired life terms maybe available. which enhance the standard terms normally paid. This is due to the fact that if the annuity provider considers that life expectancy is potentially reduced due to health reasons, then they can increase the lump sum normally available.

The amount that you will receive via equity release scheme will depend on several factors such as your age, the type of property & its current market value.

If you are looking for the best way to generate income during your retirement, equity release can be an excellent solution to assist the enjoyment of your retirement years.

 

To establish whether you will be eligible for an equity release with enhanced terms, please contact the Equity Release team on 0800 678 5159 or visit the Equity Release Supermarket website byclicking here.

 

 
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