Equity release schemes are specially designed for homeowners who are above 55 years and own at least one home which must be their main residence.
If you are retired and facing financial problems then equity release schemes could be an answer to your situation. By opting for an equity release plan, you can gain a lump sum amount of money against your property.
These lifetime mortgage plans operate similar to a conventional mortgage. You borrow money secured against your property, however the main difference is that you have no monthly payments. Therefore, the interest that is not repaid is instead added to the balance on a yearly basis & compounds for the rest of the equity release term. This would be on the death of the last survivor or having to move into care.
The Market Today
Due to varying requirements, several equity release schemes are currently available in the market. These include lifetime mortgages and home reversion schemes. Lifetime mortgages are further divided into several categories such as:
- Roll up lifetime mortgages
- Fixed lifetime mortgages
- Interest only lifetime mortgages
- Drawdown lifetime mortgages
What benefits are offered by fixed lifetime mortgages?
Unlike other equity release schemes, fixed lifetime mortgages offer a lump sum of money or regular income without any interest. Under this scheme, a pre-fixed amount has to be paid whenever your property is sold. Once you have opted for this scheme then you can stay in your home for the rest of your life. It also offers no negative equity guarantee to the applicants.
One of the best things about this scheme is that you do not have to sell any ownership which can benefit you or your family at the time of selling the home. This means that you can leave some amount of money for your beneficiaries. With the help of the remaining value in the property, you can also arrange a loan in the future.
If you cannot deal with the complications involved in equity release schemes then request th services of an independent financial consultant such as Equity Release Supermarket.
For advice or further information on the right scheme for you please contact Mark Gregory on 0800 678 5159 or email email@example.com.