Equity release schemes provide retired individuals access to equity accumulated in their property. These schemes are beneficial to the asset rich but cash poor.
What is an equity release scheme?
An equity release scheme is basically a mortgage secured on your property with no monthly repayments. The loan has no set term, but is eventually repaid upon sale of the property.
If you have decided to go for an equity release scheme, you can be assured that you will not lose the ownership of your house. You get to enjoy the cash benefits and still continue to live in your home. Anyone over the age of 55 can go for an equity release scheme. You can access the equity when you need it the most and can take the amount either as a lump sum or as monthly payments.
How do you qualify for an equity release scheme?
To qualify for an equity release scheme, you should be over 55 years of age and you must be the owner of the property, which must also be your main residence. If you have any outstanding debts, they should be minimal and easily payable with the cash that you receive from the equity release scheme, or alternative funding method.
The plans & interest rates do change over time, so it is advisable that you speak to a financial consultant who will help you decide on the right equity release plan for you. Equity Release Supermarket will always keep you informed of the latest developments in the market with its monthly email it sends to all its registered members. If you wish to subscribe then please click here.