Equity Release Best Schemes

equity release

Cash shortages issues can unfortunately be a very real problem for older home owners who are over the age of 60, especially if their pension is not of a sufficient size. It is for this reason that many people may consider an equity release to cover the cost of their every day living expenses.

 

If you are considering making this move, the best equity release schemes are those that will provide customers with the most competitive rate for their loan. There are a variety of different providers that may offer contrasting equity release quotes, and it is therefore important to carefully consider the terms and conditions of a proposed equity release deal before committing to it.

 

It should be remembered that what is considered to be the best scheme on an equity release by one customer, may not necessarily be best suited to another. Customers should therefore carefully consider the different types of equity release that are available.

 

By using a home reversion plan, the policy holder sells a portion of their property to the provider in exchange for either a cash lump sum, or for a regular income. They are also allowed to continue living in their property for as long as they wish, although they may be expected to pay rent depending on the agreement.

 

Lifetime mortgages are slightly different, instead of actually selling a portion of their property, the customer takes out a loan against the value their house, with their home used as security.  Much like a home reversion plan, the customer is allowed to continue to live in the property, but they will not usually be expected to pay rent.

 

Once the policy holder has passed away, their property will then be sold to cover the cost of the loan. It should be remembered that the size of your equity release may directly affect the inheritance of your family, and it should therefore be carefully considered.

 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Equity release may affect your entitlement to state benefits and will reduce the value of your estate. It may involve a lifetime mortgage or home reversion plan. All content set out in this website is provided for information only and should not be considered as advice. It is strongly recommended that you seek advice of a qualified, independent financial advisor before making any decisions to take out an equity release product.