Equity Release In Norwich
Compare Options for Equity Release for Homes in Norwich
If you are a retired pensioner in Norwich, an equity release may be a useful way of generating an extra source of income. Using this type of agreement, policyholders can effectively supplement their income throughout their retirement without sacrificing their home.
Please see the link below for an equity release quote in Norwich and the surrounding area.
There are two main types of equity release agreements available to customers, they are home reversion plans and lifetime mortgages. Both may be used to provide policy holders with a stable source of income that potentially last for the rest of their lives.
By using a lifetime mortgage, the customer uses their property as collateral in exchange for a loan from a provider. Customers will not generally be expected to make any repayments on the loan until after they are gone. After this happens, a portion of their sold estate will be given to the provider to cover the cost of the loan plus interest.
Before searching for a suitable equity release quote, it is worth considering the several different types of lifetime mortgage agreements available, they are:
- Home income plans
- Fixed repayment mortgages
- Interest only mortgages
- Roll up mortgages
Each type of policy will have a number of different pros and cons, and it is therefore important to carefully select a policy that is best suited to the customer’s individual requirements.
Reversion plans differ from lifetime mortgages in that the customer effectively sells a portion of their property directly to the provider. If this type of policy is selected, the customer may be expected to pay the provider rent in some circumstances, and may be treated more like a tenant.
Depending on the provider, customers may be able to receive their money either in either regular instalments or as a lump sum. Much like a lifetime mortgage, money will be taken from the policyholder’s estate after they are gone to cover the cost of the loan.