Home Equity Release Explained
Every individual would like to have a comfortable life after retirement and putting in years of hard work.
But sometimes the circumstances are such that the hopes of living a comfortable life after retirement comes under strain due to financial problems.
This is the time that equity release schemes step in for those who are above the age of fifty five and own their own homes.
There are certain requirements to go through, before one can avail equity funds by giving his home as a collateral security.
The equity release schemes are popular in UK amongst the senior citizens for the following reasons; 1.
The retired individual can stay in the house owned by him even after availing equity funds.
They can use the money for any purpose they deem fit and of their choice as well, for example, a home renovation or even going for a much needed and well earned vacation.
2.
They can even pay off their previous debts and loans which rattle their lives, day in and day out.
Amongst the various many schemes for home equity available in the UK, the following three are the most popular 1.
Home reversion scheme helps the retiree to sell a part or portion of his house for an agreed amount and the proceeds can be availed in a lump sum or even in monthly installments or even a combination of both as well.
The release of home equity under this scheme, depends on the value of the property, age and health of the individual and even the part of the property which is to be sold to the company.
2.
The lifetime mortgage is the simplest and most popular of all home equity release plans.
It is based on the aged of the individual and the value of the house as criteria.
Under this scheme you are allowed to stay in the house, but not allowed to shift residences, in case you have made up your mind to sell the house off.
You must also remember that the interest is added to the principal on an annual basis.
Elderly individuals are eligible for quite a large amount, but speak to your banker first and then make your move.
3.
Interest only mortgage- in this scheme, the individuals have to pay a full amount of interest or a part amount annually on a regular basis for the principal borrowed.
The above three plans we just discussed are the most popular in UK, but as you fall under the brackets of being a senior citizen per se, we suggest you consult the services of a professional in this field and understand each and every clause of the contract he speaks to you about and wants you to sign, to be able to know if this home equity release scheme is for you or not.
Little knowledge can be too dangerous and remember folks, your home is your investment and lifetime hard work, please use it for equity with great care and thought.
But sometimes the circumstances are such that the hopes of living a comfortable life after retirement comes under strain due to financial problems.
This is the time that equity release schemes step in for those who are above the age of fifty five and own their own homes.
There are certain requirements to go through, before one can avail equity funds by giving his home as a collateral security.
The equity release schemes are popular in UK amongst the senior citizens for the following reasons; 1.
The retired individual can stay in the house owned by him even after availing equity funds.
They can use the money for any purpose they deem fit and of their choice as well, for example, a home renovation or even going for a much needed and well earned vacation.
2.
They can even pay off their previous debts and loans which rattle their lives, day in and day out.
Amongst the various many schemes for home equity available in the UK, the following three are the most popular 1.
Home reversion scheme helps the retiree to sell a part or portion of his house for an agreed amount and the proceeds can be availed in a lump sum or even in monthly installments or even a combination of both as well.
The release of home equity under this scheme, depends on the value of the property, age and health of the individual and even the part of the property which is to be sold to the company.
2.
The lifetime mortgage is the simplest and most popular of all home equity release plans.
It is based on the aged of the individual and the value of the house as criteria.
Under this scheme you are allowed to stay in the house, but not allowed to shift residences, in case you have made up your mind to sell the house off.
You must also remember that the interest is added to the principal on an annual basis.
Elderly individuals are eligible for quite a large amount, but speak to your banker first and then make your move.
3.
Interest only mortgage- in this scheme, the individuals have to pay a full amount of interest or a part amount annually on a regular basis for the principal borrowed.
The above three plans we just discussed are the most popular in UK, but as you fall under the brackets of being a senior citizen per se, we suggest you consult the services of a professional in this field and understand each and every clause of the contract he speaks to you about and wants you to sign, to be able to know if this home equity release scheme is for you or not.
Little knowledge can be too dangerous and remember folks, your home is your investment and lifetime hard work, please use it for equity with great care and thought.
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