Possibilities for equity release cash
Go on that world cruise you have always wanted.
Clear off existing debt
Make life more manageable
Visit family in foreign countries
Buy a holiday home in your favourite destination
Make some home improvements
Help your family out in times of need
Extend your home to accomodate family
Latest Equity Release News
Reverse mortgages take off in America.
Reverse mortgages, the American equivalent to Equity Release are starting to gather pace as an industry in the USA. As a relatively infant industry compared to equity release in the UK, the industry shows no telltale signs of being immature. With Google receiving nearly half a million searches a month for the product, one could say that the market is developed.
Equity Release Calculator becomes mainstream
Many equity release uk companies now offer the option to calculate the amount your could receive from a lifetime mortgage or home reversion plan online.
Lifetime mortgages grow in popularity amongst wealthier applicants
According to recent findings in the equity release industry, lifetime mortgages are increasedly being taken out by home owners with house values exceeding £500,000. Suggesting that equity release mortgages are a form of retirement planning for everyone and that to release equity is a universally acceptable decision.
An unbiased information site on home equity release mortgages, home reversion plans and lifetime mortgages
What are Home Equity Release and Home Reversion Plans?
Equity release is an agreement between an older homeowner and a lender that allows the homeowner to unlock the money tied up in their home.
This money is tax-free cash and enables the homeowner to afford to live the retirment that they have worked for.
For many, the home is the greatest asset. Home equity release mortgages are a way to transfer the value of this asset so that the homeowner can take advantage of their lifetime of mortgage payments.
Home equity release mortgages turn a home into what is effectively a pension fund so that extra money is available in a time where income is relatively low.
Click Here to Learn More on Home Reversion Plans
What are the benefits of equity release mortgages and home reversion plans?
As equity release is for those aged 55 and over, most of those opting to pursue it will have no real source of income apart from what they have already set aside. The trouble with this is you can only set aside what you have anticipated spending.
Retirement frees up an awful lot more time than the working week does. It is likely, however, that your pension was based on what you were spending whilst you were working. Even if you don't think it was, chances are it will be as the working life is all you have known for a very long time.
Now you have all the freedom of retirement but are having to live on a pre-set budget.
Throughout your lifetime, mortgage payments will have been your biggest expense. Equity release effectively turns these mortgage payments into a pension fund. To release equity is to unlock the money tied up in your home.
Many retirees feel that they miss work when they finish. But many simply do not have the finances to be getting on with the more interesting things in life such as world travel or visiting family.
What do the good equity release schemes offer?
Each of the different types of equity release schemes can help you to live the retirement that you have always wanted. An equity release company can provide flexibility by offering the following defining features:
Typically, there are no monthly repayments to make in your lifetime
You can remain in your home for as long as you so wish.
Certain schemes provide you with the option to move if you so wish
The amount owed to the provider will never exceed the value of your home
What is the criteria to release equity in the UK?
In order to release equity on a house, the following criteria usually needs to be met:
- The homeowners must be aged 55-95.
- The home in question must be the candidate's permanent residence and lived in for over 6 months of the year.
- You must own the home in question.
- The home must be worth at least £50,000.
- The home must have little or no mortgage left remaining and any outstanding mortgage must be repaid with the released equity.
- The home must be of a standard construction.
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None of the information on this website is intended to promote any specific equity release product or provide equity release advice. Any information contained herein is a personal opinion of the author and should not be considered to be advice of any kind.
