Archive for the ‘Equity Release Guide Articles Age Partnership’ Category
Releasing Equity for a better retirement
Lifetime mortgages and home reversion plans are popular ways of releasing equity from your home. More people in the UK are starting to use the value built up in their home as a way to help them enjoy a better retirement. As the UK market grows, releasing equity couldn’t be easier. Today’s equity release schemes are more flexible and the majority are backed by SHIP (Safe Home Income Plans) to ensure that you will never owe more to the product provider than the value of your home.
Beginners guide to Equity Release Loans
Equity release loans can help you if you’re looking to raise a lump sum of cash for a costly purchase like a new car or home improvements, or simply consolidating some debts and credit cards to bring down those steep interest payments. Loan rates have never been lower than they are right now, and equity release loans are a safe and secure way to release some of the value locked in your house.
Release Equity Calculators
Lots of you will have heard about equity release but are reluctant to look into it further because you’re unsure how interest rates work on a lifetime mortgage. Release equity calculators are widely available online and designed to help you estimate the value of your remaining equity at various points in the future. Release equity calculators are quick and easy to use and are based on your personal circumstances and your view on house price inflation.
If you think a lifetime mortgage plan could change your life for the better then find out whether you’ll qualify with a release equity calculator. By entering your age and the value of your property, a release equity calculator will tell you firstly whether you’re suitable, and also the amount of equity you might be able to unlock from your home.
Is an Equity Release Lifetime Mortgage for you?
An equity release lifetime mortgage is proving to be an ideal solution for many UK homeowners over 55 who feel that their pension funds or current savings aren’t stretching enough for them to lead the life they want. That’s because an equity release lifetime mortgage allows you to unlock the value tied up in your home and you can use the cash as you wish without having to make monthly repayments or move out of your home. As with all financial planning it needs to be considered carefully alongside other financial options, which is why it’s important to get the very best advice from a trusted equity release lifetime mortgage provider.
Why should I apply for an Equity Release Scheme?
The right equity release scheme could mean the difference between a comfy retirement and a constant worry about paying the bills. Sadly, lots of retired people face a substantial drop in income, which often means that they have to consider downsizing their home and moving into something cheaper to afford a more comfortable lifestyle. An equity release scheme allows homeowners aged 55 and over to significantly boost their income by raising a large sum of money or regular income without having to sell their home and without having to pay rent or loan repayments.
Benefits of Lifetime Mortgages
Lifetime Mortgages give you the opportunity to unlock the thousands of pounds tied up in your home and can help you enjoy a more comfortable and secure retirement, whether topping up pension funds or using the added income to give yourself an all round better standard of living.
How do I know if I qualify for Equity Release?
If you are a homeowner and are aged 55 or over you could qualify for equity release, and you could benefit from releasing a tax-free lump sum or an additional regular income from your home.
Your final eligibility will depend whether your home meets the general property requirements needed for your chosen equity release product.
Releasing Equity From Your Home
There has never been a better time to consider equity release. The market is more competitive than ever before and as a result interest rates on equity release schemes are at an all time low. The right equity release specialist should be able to search the whole market to find the most suitable equity release plan for you.
What is a Home Reversion Plan?
Unlike a lifetime mortgage and drawdown lifetime mortgage where you remain the homeowner while you live there, with a home reversion plan you actually sell part or all of your property in return for an income or lump sum of tax-free cash whilst still retaining the right to live in it rent free for the rest of your life without having to make any repayments.
With a home reversion plan you don’t necessarily have to sell off all of your property, you may decide to release equity on only a fraction of your home, thus guaranteeing an inheritance to your beneficiaries. Typically home reversion plans aren’t as popular as lifetime mortgages for the reason that many people prefer to retain full ownership of their home.
What is a Lifetime Mortgage?
A lifetime mortgage is one of the most popular forms of equity release because it allows you to free up part of the value of your home without risk to losing it. You retain full ownership, the equity you release is tax-free and can be taken in a lump sum. Consequently, a lifetime mortgage would be particularly beneficial if you’re looking to raise a large amount of cash without having to worry about regular repayments for the rest of your life.
Interest is added to the lifetime mortgage over your lifetime, accruing at a fixed or variable rate. The loan plus interest is eventually repaid when your home is sold. This can be when you move into long-term care, or when you and your partner die. In the UK, you can usually release up to 50% of the value of your home with a lifetime mortgage but that will vary depending on the value of your home and your age. An independent equity release specialist will be able to advise you more.
