Every individual wants to live a comfortable life post-retirement. However, sometimes lack of capital can cause financial discomfort post-retirement. In such cases, equity release schemes can act as a saviour. They can really help retired individuals who are going through a financial crisis.
There are certain key points that you should consider before applying for an equity release scheme. Some of these points are as follows:
Only those individuals who are aged above 55 and own their own property are eligible for equity release. Moreover, retired individuals can also continue to live in their homes. This is the reason why these schemes are immensely popular among older homeowners in the UK.
Types of equity release schemes
There are many different types of equity release schemes available today. Some of them are as follows:
- Home reversion
- Lifetime mortgage
- Interest only mortgage
Each of these equity release plans has different coverage features. For instance, in home reversion, individuals have to sell off a part of their homes to release some equity. This amount can be received in installments.
It is better that you consult a financial expert before you take out an equity release plan. In this way, you can get the best available policy.