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Equity Release Supermarket News All You Need To Know About The Halifax Retirement Home Plan
All You Need To Know About The Halifax Retirement Home Plan
Equity Release Supermarket News All You Need To Know About The Halifax Retirement Home Plan
Halifax Retirement Home Plan

All You Need To Know About The Halifax Retirement Home Plan

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Mark Gregory
Checked for accuracy and updated on 03 April 2024

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.

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.

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.

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.

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.

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).

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.

To find out if you qualify, please call us today on 0800 678 5159 or email [email protected].

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