Today, equity release schemes are preferred by many people because they help unlock money against the value of their homes. If you are 55 years of age or older and facing financial constraints then you should consider equity release schemes. They are specifically designed for older people who own their own home and seek to live a better life.
How do equity release schemes work?
With the help of these schemes, you can obtain 15% to 50% of the value of your property. To qualify for equity release, you must also have no or very little outstanding debts. If you have any secured debts then they must be fully repaid, either before or actually on completion. In exchange for a value of your property, the lenders will pay you a lump sum amount of money or a monthly payment.
Two different types of equity release scheme
To fulfill different needs, two different types of equity release schemes have been introduced. These include lifetime mortgages and home reversion plans.
If you choose a lifetime mortgage, you can receive a lump sum amount of cash against your property. The best thing about this scheme is that the repayment is made when the homeowner dies or moves to a care home. Today, different types of lifetime mortgages have been introduced by different financial institutions.
Home reversion plans allow you to sell a part or all of your property in exchange for a cash payment. You will receive a lifetime tenancy agreement & have no rent to pay for the rest of your life.
All equity release schemes we advise on are regulated by the FSA (Financial Services Authority) & are members of SHIP (Safe Home Income Plans).
To establish which of the two lifetime mortgage schemes are suitable for your requirements, contact the Equity Release Supermarket team on 0800 678 5159.