Archive for January, 2011
No Negative Equity Guarantee – Equity Release
It is one of SHIP’s most popular and recognised equity release guarantees. But what does it mean to the customer?
The no negative equity guarantee is a set-in-stone rule of SHIP governed equity release plans. It means that you will never owe more than the value of your home – no matter what.
Historically, house prices have always risen over long periods of time. Logically, this makes sense too as the population grows over time, thus increasing demand.
However, what should happen if property prices fall over the long term? The fixed interest rate will guarantee that your initial loan will grow exactly in the manner illustrated when you took out the plan. If property prices were to unexpectedly fall, then there may be a time in the future when the loan amount is higher than the price of the property. Fortunately, with a no-negative equity guarantee, the maximum repayable amount will never exceed the price of your property – even if the difference is very sizeable.
This can give you and your loved ones peace of mind that there is no debt left to your estate as a result of you taking out an equity release plan.
Use our equity release calculator to compare rough estimates of the amounts offered by the major equity release providers. Or for a more detailed and personalised comparison, call 0800 012 4180 for a free, no-obligation chat about equity release.
Debt Management Plans & Equity Release
Equity release is fast becoming a preferred route for many who find themselves in debt management plans. Debt management plans are a popular way of managing debt which could otherwise spiral. However, they are a solution that still requires regular monthly repayments. Equity release is particularly attractive in these cases as there are no monthly repayments to make. The amount one can release with an equity release plan often exceeds the average debt levels of those in a debt management plan; leaving the customer debt-free with extra capital to enjoy life and enough equity left in the home to leave an inheritance to loved ones.
Use our equity release calculator to compare rough estimates of the amounts offered by the major equity release providers. Or for a more detailed and personalised comparison, call 0800 012 4180 for a free, no-obligation chat about equity release.