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Equity Release – An Excellent Way To Secure Your Retirement

By Mark Gregory on the 13th September 2010

Are you facing financial problems? If your answer is yes, then equity release schemes may be the perfect option for you. These schemes are specially planned for elderly people to release some cash against their property’s value. There are various equity release schemes offered by financial institutions.

Two of the most popular equity release schemes are lifetime mortgages and home reversion plans. By opting for home reversion plans, you can sell all or a part of your property to the equity release company.

On the other hand, lifetime mortgages are categorised in three different types:

  • Roll-up lifetime mortgages
  • Fixed repayment mortgages
  • Interest-only plan

Of the above mentioned schemes, the roll-up lifetime mortgage scheme is preferred by many homeowners these days.

However, here we feature one of the less common equity release plans: -

Features of a fixed repayment mortgage:

Instead of interest, you have to pay a fixed amount of money which is higher than the original borrowed money. The repayment money is agreed in advanced with the lender. You do not have to worry about repayment money because it is done when your home is sold.

To choose an equity release scheme which suits your requirements, you should always employ the services of an independent equity release advisor such as the team at Equity Release Supermarket, whom have over 30 years equity release experience.

They will guide you. In essence they will ascertain your current situation, gather details of your finances & dicuss your options.

These will include looking at any alternatives prior to explaining & advising on equity release: -

  • Downsizing
  • Interest only mortgage
  • Using any savings or investments
  • Asking relatives for financial assistance
  • Seeking any entitlement to state benefits
  • Taking on a lodger

Once these avenues have been explored the adviser will make their recommendation. This will involve running through a specific Key Facts Illustration (quote) & explaining the pro’s & con’s of the particular product.

Should this be to the satisfaction of the client then the relevant paperwork can be completed by filling out the required documents.

Most equity release schemes offer three payment options. You can get a lump sum or regular monthly income. You can also opt for a combination of both these methods.

For additional information on the alternatives to equity release contact your local Equity release supermarket financial adviser on 0800 678 5159 or email

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Tags: Independent Equity Release Advisor, Roll-Up Lifetime Mortgages, Fixed Repayment Mortgages, Equity Release Supermarket, Lifetime Mortgages, Equity Release, Home Reversion Plans, Equity Release Schemes, Home Reversion, Interest Only Plan, Key Facts Illustration

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