Do you need extra more money during your retirement?
If the answer is yes, then equity release can be an ideal solution. Today, many equity release companies exist who provide different mortgage schemes to homeowners who are above 55 years of age. By opting for these schemes, you can release equity or money against the value of your home. Before taking a final decision, it is important to consider few factors. These include:
Flexibility – You have to check how flexible your equity release plan is. Choose the scheme which allows you to draw more money or allows you to sell the property, if required. There are lenders who also allow the applicant to make ad-hoc repayments off the balance (subject to early repayment charges).
Fees – The fees for purchasing equity release schemes depend on the provider. Consideration should be given to the plan whose fees are the lowest. Nevertheless, this shouldn’t be classed as the over riding factor. Special offers such as cashbacks, free valuations all help to keep the costs down. Check with Equity Release Supermarket to see what offers they can find you.
Interest rates – Similar to fees, the interest can vary on the basis of the scheme or mortgage chosen. Before choosing, it is recommended to compare the interest rates of different schemes. Rates currently can vary from as low as 6.59% up to 7.59% & this can have a massive effect on the final balance at the end of the day. Always check aswell that the interest rate being quoted is annual. Some equity release companies quote on a monthly & some annual basis. A monthly interest rate of 6.59% is actually higher than an annual interest rate of 6.59%, due to the quicker compounding effect of monthly v annual interest.
S.H.I.P (Safe Home Income Plans) – This is an organisation which was set up to protect the rights of consumers or purchasers of home equity schemes. Whichever scheme you choose, ensure that the lender is a member of this organisation. As a result of using a ship equity release company, means that the solicitor will have to sign a SHIP certificate to say that they have acted on the clients behalf & they understand what they are entering into. Additionally, being a member of SHIP means the scheme has to meet certain criteria – to be able to be repaid; to be able to move house & inlcude a no negative equity release guarantee.
Financial Services Authority (FSA) – The FSA is a regulatory body in the UK which takes care of the rules and regulations followed by the financial companies. Always choose a company which is registered with the FSA thus affording the protection the FSA provide.
It is advisable to hire a qualified financial consultant before investing in any one of the equity release schemes currently available in the market.
Equity Release Supermarket have experienced advisers who can source the whole of the market to find the best equity release deal for you.
Call freephone 0800 678 5159 or email [email protected] to discuss your requirements further.