Equity release to break your financial resistance
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hether you are approaching the retirement age or have already retired, you need to buckle up financially. In the UK, pensionersâ€™ income has plummeted to a six year low, and in all the probability, life is going to be harsh under todayâ€™s economic slowdown.
Retired citizens are not left with sea of opportunities to correct their financial err. Because of their non-productive age, itâ€™s not an easy task to turn their financial fate. A large number of people get retired with one or other interest only loans on the verge of attaining maturity.
What will be your priority at that time? You are confused, whether to repay the loan or gain financial strength. Well, time has come when you can live all the dreams of yours. Equity release scheme provides you an opportunity to repay the loan amount and at the same time strengthens your financial situation.
However, it has always been a concern for senior citizens to get a right equity release plan but given some home works and right financial advices, you can ward off all your apprehensions. Before moving right away to the financial experts, do some research works on your part as well.
The basic age to avail equity release scheme is 55 years, though it may vary on some plans, like home reversion, where you need to be of at least 65 years older to avail this scheme. Some of the equity release providers even consider 50 years as minimum requirement to befit few plans under equity release.
Based on your age, you can study a plan that suits you the most, however, financial experts could provide you accurate and exact information on this matter. Nevertheless, equity release plans basically constitute four schemes, which are:
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â€˘ Lifetime Mortgage: You can release a large lump sum from your house, besides retaining complete ownership. No requirement to pay the monthly interest rate, as with interest only loans, which eventually gets added to the loan amount and repaid
only after your death or when you decide to move into long term care, by selling off the property.
â€˘ Drawdown Lifetime Mortgage: This plan holds lots of similarity with Lifetime mortgage solution. You have an opportunity to release money over a longer period or as and when you are in need.
â€˘ Interest Only Lifetime Mortgage: Under this plan, you are required to pay interest on the monthly basis.
â€˘ Home Reversion Plan: This plan is little bit different from others. You have an option to either mortgage entire property or a part of it in return of cash lump sum. The loan amount is repaid only once you die or decide to move into long term care.
Time and again, it is repeated that financial experts can give you a complete overview on equity release schemes for senior citizens, so check out with them to live a prosperous life after the retirement.
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