Many individuals still are still taking financial issues into their retirement. We are all aware of the issues that have dogged the pensions industry over the last decade or two. With the decline in final salary schemes & corresponding members of such schemes, retirement that ensures a safe and constant source of income is a worrying concern.
To solve such pension shortfalls & the financial problems in retirement this causes, equity release schemes have been introduced.
Facts about equity release schemes
Before opting for equity release, you need to know some important facts about it.
You are paid by the equity release lender for the property you mortgage. This money can be paid as a lump-sum amount or as a monthly income. The type of payment to be received depends on the applicants choice. Monthly payments are the constant income that works exactly like a monthly salary. A lump sum payment is when you can retain the complete value of your property at one time. This type of payment can help you to invest in another property, maybe a holiday home for yourself or a deposit on a new property for your children. People who use an equity release scheme as an additional form of income choose to receive the payment as a regular lump-sum amount.
Repayment of loans
Roll-up equity release schemes have a unique benefit. They allows you to maintain the complete ownership of your property for your lifetime. You can enjoy complete rights over your property even after mortgaging it without worrying about the repayment at all. Interest is added annually to the actual amount till the loan is repaid.
On the other hand, a home reversion scheme allows you to sell your property and then receive the money. In this case, you do not have to pay anything in return later on. The loan should be paid within a period of 6-12 months.
Should you require further advice or quotations on lifetime mortgage or home reversion schemes please contact Mark Gregory on 0800 678 5159 or email firstname.lastname@example.org.