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Equity Release Plans Online

For senior citizens over age 55 who are planning to leave a large estate, there are new lifetime mortgage schemes that provide inheritance protection features which can now provide peace of mind like never before. For many people considering a lifetime mortgage, the main barrier to overcome is the fact that the balance on these plans increases over time. There has been much scaremongering over the years and unfair comments made about the equity release industry from the national press. Some of this has been deserved with regards to the equity release schemes back in the 1990s, but these tended to be the banks with the much-maligned Shared Appreciation Mortgages.




Nowadays the equity release industry is highly regulated & quite rightly so. Following the introduction of SHIP in the early 1990’s a set of standards now exists which has now formed a code of conduct that both equity release companies and advisers must follow. Failure to do so could result in their equity release license being revoked.




Additionally, the research techniques of the baby boomer generation has changed. Where once the internet was considered the arena of the young & aspiring, the silver surfer generation has been born and you will now find many retirees booking their holidays and order their shopping online. This has led to the new equity release brokerages developing online advisory techniques to be able to present in a simple & clear manner what equity release is & the best deals available. One such product which has become an increasing favourite is where This new breed of are being used to enhance the maximum lump sum available. These equity release schemes are proving particularly salient to the risk-averse of the retired population who at the same time want an affordable and efficient tax-free access to their capital. In addition, these plans can now be sourced, evaluated compared and even managed from the comfort of your own home, thanks to advances in the world of online shopping. Read More...


An Easier Retirement

One business model that exists in France but does not have a direct equivalent in the UK is the Bigger system for taking equity out of your home. The closest we have is Uk based equity release specialists offering advice to the retired looking to take tax-free cash from their main residence. Available across UK inc England, Scotland, Wales & N Ireland. However, not all locations acceptable, nor properties, hence one but the two systems are very different.




The bigger system is a sale of a house or apartment between two parties and it is fairly common in France. The way it works is that the owner or two owners of a property, usually elderly, advertise their house for sale almost in the same way that they would with a regular sale.




The sale price is always quite a way below true market value but in addition to the price of the house, the buyer also pays a set sum each month to the seller for the rest of his life. The seller also has lifetime enjoyment of the property, so the house or apartment only passes to the buyer on the death of the seller or if they are a couple when both of them die. Read More...


Various Equity Release Solutions for Pensioners

Several individuals and couples have been known to financially benefit from equity release solutions. These solutions serve as schemes to help retirement age individuals use the equity already built into their property as a source of ongoing capital or income. This money can be used to help sustain monthly expenses, pay off debts or a whole host of financial measures to help people in retirement.




There are two main types of equity release schemes; home reversion plans and lifetime mortgages. These two types of lifetime mortgage solutions can serve to help retirees stay in their homes while also maintaining and potentially increasing their monthly income & lifestyle.




Let’s have a look more closely into the two main types of equity release schemes the first of which is the home reversion plan. With home reversion plans, the homeowner agrees to sell a portion of their property in exchange for a lump sum payment. Upon the death of the homeowner or their spouse, the lender receives the pre-agreed percentage of the home sale. This amount remains the same, even if the property value of the home has at all fluctuated. Read More...


Discover the bounty that lies beneath equity release

Customers should look to equity release as a treasure trove that is literally waiting to be exposed by them to assist in structuring their financial portfolios. Simply put, equity release is a way to release a tax-free lump sum by borrowing against the value of your property. This is fantastic for people who want to unlock tax-free cash that can be used for a variety of different things subject to what you are doing in your life.




will answer all of your questions when it comes to knowing how much you can borrow. It is critical to know exactly how much money you want to borrow because it helps to ascertain what you can do with it. Look at the advantages below to knowing how much money you want to borrow because of using a mortgage valuation calculator.




 Top tip: Make sure you pick the right type of equity release UK mortgage to suit your lifestyle. For example, an interest only equity release scheme means that you can still own 100% of your home. This should be the choice for you when you are using the mortgage calculator especially if you have sentimental value over your homes, such as it being a unique heritage property or the family home. Choose the right lifetime mortgage scheme to tie into your personal lifestyle in order to get the most out of the cash that you will get from it. Read More...


A Brief History on the Growth of Equity Release

In 1965, the first equity release plan was introduced in Britain, which at that time had approximately 9.7 million people who were above 60 years of age. Retirees needed a simple way to obtain money to fund their daily expenses & provide a better lifestyle. Back then, equity release schemes were mostly utilized by homeowners who owned large and rich houses but were lacking in cash. They did not have a steady income stream and the plans were financially unstable.




Equity release has grown over the years into one of the largest industries for the retired population. Its growth brought along an entire industry of tools and marketing ideas to help homeowners. The age demographics has since changed & equity release now starts from the age of 55. Previously, the proceeds from were used for daily essentials, but today the proceeds of equity release are used to improve the lifestyle of homeowners. Equity release is used to fund vacations, dream cars, repay outstanding debt matters and home improvements. Equity release is now also beneficial to homeowners with deteriorating health. They can use the extra money these enhenced equity release schemes raise to pay to be cared for at home instead of having to move to a care home.




One of the most important tools that equity release introduced that is of great help to homeowners today is equity release calculators. Equity release calculators were first introduced over three years ago by the innovative Equity Release Supermarket website. This site has to lead the way in advising clients easily and for free, on how much equity they can release from their property. Read More...


Brighten up your financial portfolio with equity release

The best way to understand what equity release is all about is by looking at it as a way of providing financial liquidity. If the credit crunch crisis of 2008 taught us anything is that while fashionable investments may always come and go, cash is definitely king. Without cash, you cannot do all the things that you want to do in your life because you do not have an immediate way of paying for your lifestyle. This is where the phrase, asset-rich, cash-poor derives from.

The can be read so that you can get all the latest news and tips about the equity release market. In previous years, the Council of Mortgage Lenders found that the equity release market that includes lifetime mortgages was worth over $6bn. If you are curious about what equity release can do for you, it is important to read equity release material such as blogs and reports. Here are the benefits that blogs give you:

Why property owners should request an equity release guide

Equity release is one of the most popular trends in the property market in the UK, and its boom in recent years has shown no signs of slowing down. The standard definition of equity release for someone over the age of 55 to be able to release cash from a property that you own, whether that is a family home such as the main residence, or holiday home. You must have little or no mortgage on the property in order to qualify for equity release & if there is, it must be repaid upon completion of the equity release scheme.




In order to make the initial research into equity release schemes, you should engage with an which has plenty of information on offer to help everyone learn about the benefits and advantages of equity release. Take a look at how equity release schemes work below and whether it can fit into your lifestyle as you get older:




So for an equity release free guide to be found, you need to source the range of equity release websites on the internet. However, always be careful that the equity release free guide isn’t an equity release brokers trick to capture your personal information. You can either request the details by downloading an equity release guide or the better companies can post an equity release free guide to your home address. Read More...


Get True Value from your Investment

Having your own flat or house is a dream and later a goal that comes to mind of any adult person. You need you own living quarters to indulge in your hobbies, cuddle up with your loved ones to just live generally. But buying that space can turn out to be a costly undertaking throwing us towards the need to save up every penny and live more than frugally until our dream comes true.




Equity release plans allow you to get back some part of the price you paid for your accommodation. If you are not sure what that means and do not trust the establishments for calculating the best release plan, you should turn to an independent equity release adviser competent with the relevant qualifications.




This is the person who can make the transition of the money you paid for your residence that was once in your pocket or banking account now and you and your immediate family members get to keep the house or flat as long as they live! Read More...


Can I get an online equity release quote?

Today, it is very hard for those in retirement to obtain a loan due to the fact that most of them do not have a fixed and stable source of income. In most cases, whatever income they do receive whether it is from a pension plan, annuity or some other form of retirement planning, it is sufficient to meet their daily needs. This makes it difficult for retirees to go on the dream vacation that they had always wanted to go on, to purchase their dream car, or to simply make necessary home improvements.




Retirees who are the proud owner of a property with a specific value do have one other option equity release. Equity release allows retired home owners to obtain a loan secured against their property. Some equity release schemes allow retired homeowners to sell a portion or all of their property.




One of the main advantages of equity release schemes is that retired homeowners are allowed to remain in their property for as long as they want even if they choose to sell a portion or all of their property. Another advantage is that no repayment is required during the lifetime of the homeowner. This applies to most equity release schemes. After the homeowner and his partner both die or move into a long-term caring facility, the property is sold and the equity release provider is repaid. Read More...


Make your home sparkle today

The pride that most Britons have for their homes means that many people adore doing home improvements. Whether it’s over the bank holiday weekends or just solely in their spare time, by renovating on your home can vary from anything to painting or stripping down the walls and creating something truly special.




If this sounds like something you are interested in, you should think of the variety of ways that you can finance your passion for home improvements within your home. We all take pride in our properties & will always want to impress the neneighborsWell when you were wondering how the retired couple next door could afford it, the following article will maybe explain just how they are managing it!




So please, take a look at some of the ideas that we have in store... Read More...


How Drawdown Equity Release Schemes Can Help Your Building Project

One of the most significant moments that most people will experience is retirement. This is because this is a moment in time when a person will usually not be working anymore. However, for a person to be able to enjoy their years after retirement, they need to have saved up sensibly over their working years, so that they may not be a burden to other people.




But what if insufficient provision has been made & once retirement has reached a shortfall in income exists? Afterall, there are still home maintenance issues to tend with and ensuring the upkeep of one’s property is carried out in order to preserve its value & thereby your ultimate inheritance. However, maintenance & property upgrades come at a price, a price which equates to pounds, shillings & pence.




Therefore, there are times when a person has not saved enough, which has now resulted in a pension income shortfall. Subsequently, if such a person is looking for funding, or loans, one of the best ways that they can work out the maximum benefit they are eligible for then they require the use of a which provides the calculation to provide flexibility in making up the shortfall required. In fact, drawdown lifetime mortgages are one of the most popular ways through which people who have reached retirement age can be able to secure extra funding. Read More...


Evaluate Different Equity Release Plans Before You Invest In Any

If you want to secure money in your retired life, then one of the best ways to do this is with an equity release mortgage. What happens in retirement is that many people get a limited amount of money from their pension plans, which makes it virtually impossible to live a comfortable lifestyle. The other factor that is largely affecting pensions today is the increase in commodity prices and basic goods. Senior citizens, therefore, have to find an alternative way of earning additional income, and this is where equity release potentially becomes very helpful.




On the other hand, it is imperative that you compare equity release criteria from the different schemes available before you settle on any. With websites setting up such as CompareEquityRelease.com, you can now analyze interest rates and deals available. It is also possible for one to check the amount of money that is available for them as they compare equity release using an equity release calculator often availed on the website.




Most of the companies offering this service have a web-based calculator that one can use and get a rough idea of the amount of money that they will be getting, and the final figure will depend on one’s age and health. One can compare the maximum amounts available for them using different rates, and even compare the interest rates from different companies. Read More...


Equity release tips for the financially savvy

Anyone who is looking at equity release as something that can make them successful should definitely consider the wide range of top tips that come in the industry. In this article, you will learn all you need to know about how to make equity release work well for you.




A release of equity can be chosen by a wide range of people over the age of 55, and they are particularly good for people who are financially savvy. The top tips that people should follow when choosing equity release include-




Decide why you need it now: One of the most important aspects of equity release is the idea that it is needed after the age of 55 to give a tax-free boost to people. If you need it to fit your current lifestyle, you should consider assessing how your lifestyle will change once you get equity release. Read More...


Understanding the Costs of Care for the Elderly in Their Own Home

Care of the elderly can take on many forms. It can be provided in a secure environment such as a residential care home or nursing home or in many cases a person may choose to have their care provided in the comfort of their own home. Specialist care providers exist that can tailor a care plan to meet the for individuals needs and adapt that care plan as care needs change.




Providers of home care are registered with the Care Quality Commission www.cqc.org.uk in England and Wales. The Care Quality Commission regulates the companies providing care services. They have specific criteria to meet on registration and will receive regular checks to ensure that they are maintaining standards. You are able to review the care providers report on the Care Quality Commission website.




In addition to this regulation, the national professional association for organizations who provide care for people in their own homes is UKHCA (United Kingdom Homecare Association) www.ukhca.co.uk. They have a vision where a choice of high quality, sustainable community-based care is available to all. Read More...


Assessing your ability to pay for Long Term Care

There are so many tips and procedures that are needed to ensure that you find the perfect long term care provider for your elderly mum or dad. There is usually much confusion and stress that comes with making the decision as to whether care at home will be the best option for you or not, however; the good news is that there are long term care advisers you can contact to advise you as to what will work best.




Every good long term care adviser will make sure you understand the cost that involves hiring a home care provider. Also, before you can it will be best if you use the internet more for your search. Being able to pay for care in your home can be quite stressful especially now that the economy is quite unstable however; if you have a long term care insurance plan, there is a lot less for your worry about financially.




There are so many people that do not know how home care payment are made and also whether they can plan ahead for it. A registered care provider is the best way of ensuring that you or your mum and dad are safe. However; there are stages by which these care providers are assessed by the Care Quality Commission. Care providers would be fully trained in all aspects of the care they will administer such as medications and handling. Read More...


Charitable Funding for UK Care Fees

Long term care over the years has proven to be very expensive especially because the elderly are very difficult to take care of. Only expert nurses are trained to take care of the elderly in the UK which is why their service costs are very high. Before you decide on taking your elderly mum or dad to a health care nursing home, it will be best to consider funding and how you will be paying for him or her being taken care of.




The truth is that many people have exhausted their assets to pay for their care because they did not receive any financial advice. However; in the UK today, there are so many organizations that are offering assistance to those with care needs both financial help and also with the loan or provision of equipment. There are some requirements that an individual needs to possess to get approval for such assistance, however.




Now that you know that there is assistance available, it is time to know about the different types of care homes available in the United Kingdom. First, there is a residential care home type. What residential care homes do is that they offer or provide both short and long term personal care for the elderly. However; they can not be counted on if the resident requires any form of nursing. If the elderly person or person who needs nursing care has a very serious health condition, residential care home with nursing will be perfect. Read More...


How Care Fees Can be Affected by Rules Governing Deprivation of Capital

If you are no longer capable of taking care of your physical, emotional and mental daily needs, you are in need of long-term care. If you do not have a family member or a friend who will willingly take care of you, you will have to resort to a professional care home or facility. If you qualify, the costs of professional health care can be covered by your local authority or continuing care from the NHS.




Before the state decides how if a proportion, all or none of the costs of professional long-term care are covered, the assets of the recipient of long-term care are assessed by the state. If the state determines that your assets are sufficient to cover the costs of long term care, the state does not cover any of your long-term care costs except by the provision of Attendance Allowance or Registered Nursing Care Contribution. Deprivation of capital is a common way to get the state to finance the costs of long-term care.




Deprivation of capital is the process of transferring assets out of your name so that they would not be taken along in the means test done by the state to determine whether or not you qualify for state financial aid for long-term care. It is one way that people believe they can be and additionally deprivation can be done in several different formats. Read More...


Where can Carers Turn for Help in Providing Long Term Care for the Elderly?

As people get older they may start to rely upon their family or friends for assistance with minor chores around the house for example cleaning, cooking and shopping or perhaps more personal care like helping them to get up and dressed in the mornings or putting them to bed in the evening. As dependency increases, this can have a major impact on the person who is providing the care.




The demands of the person needing care may start off quite simply but as their needs increase the carer can often find themselves committed in some cases to round the clock care. This level of commitment may come at the detriment to their own family or their career. Caring for someone on a day to day basis can be very stressful and leave you with very little time for yourself.




There are organisations that are able to provide carers with support and which may ease their burden. Organisations that can help include: Read More...


Paying for Your Long Term Care in Scotland

Paying for care is not a small matter. Whether it is care provided at home or in a residential care home, costs of care services can quickly add up to a significant amount. Today, as care during old age has become a ubiquitous need, it is more important than ever to understand the care system and to plan for long term care in advance.




In the UK, the state and the NHS provide help with costs of care to those who may be eligible to receive it subject to a means test in the case of certain benefits, and a needs test in the case of others. The system is different in Scotland, England and Wales. Let us first consider the and its implications on the elderly.




For residents of Scotland over the age of 65, care at home is given free of charge, provided the local council has assessed that care is required. In such a case, the cost of care to be met by the individual is limited to personal living costs and the potential cost of daycare. This type of assistance from the local council does not affect other benefits such as attendance allowance, disability benefits etc. Read More...


Government Proposal to Secure Long Term Care Fees on Your Home

The government has just announced a new proposal to offer homeowners local authority loans to fund the cost of long term care for the elderly. At present, if you have assets exceeding the upper threshold of 23,250 which includes your home you are required to fund the cost of your care yourself. The cost of the home is disregarded however if it will remain the home of a spouse or partner or a relative over the age of 60, an incapacitated relative still lives in it or a child under 16 still lives there and the person needing care is responsible for maintaining them.




If you need to pay for care at present the options for funding may be to sell your home to release the capital, you may consider letting the property out which would generate an income to help with the cost of care. The new proposal by the government is to offer loans which will be secured on your home and would only be repayable on death. This will effectively remove the stress of needing to sell the home straight away. This option will work in a similar way to equity release. They are going to charge interest but at this stage the level of interest is unknown.




Some local authorities run in their localities. These schemes are a loan from the local authority to cover the cost of care and the debt is secured on the home and repaid on death or the prior sale of the property. These schemes have the added benefit of being interest-free until 56 days following death. Read More...


How The Dilnot Report Affects Long Term Care

The published in 2011 was commissioned by the coalition government in July 2010. They received a response to the issues raised by individuals and organizations on the provision of care. The commission received over 250 responses from various groups and individuals which included the financial services sector, local authorities and care providers.




The response received was covering the various area of care providers such as the reform of state funding systems, raising additional funds and improvement of advice and information for all concerned.




Overall there was a great support for a joint funding model for individuals and the state to provide care. It was also stated that any reforms made must also support working-aged adults and not just the elderly care. There was also a call for more integration of services because the present system for assessment and provision of long term care is disjointed and does not work effectively. People need to be able to plan for a future that is more certain. If the recommendations of the report were to be adopted the cap on the cost of care to the individual may have opened up the market for providers to design new products to cope with the demand for funding care. The present system of charging and provision of care can cost an individual their life savings. Read More...


The Provision of Elderly Care

For elderly people, life can be very frustrating as aging gets worse especially because they feel they are not in control of their lives anymore. Yes, this scares them and also may make them feel they are a burden which is why it is important as a loved one to make sure they get all the love and support they need no matter what your decision with regards to home care will be. has always come with many concerns over the years as unsurprisingly, the charges keep on going higher.




However; whether you decide on residential home care or care home with nursing; you must make sure only the very best attention and care are given. Also, making sure you are aware of the positives and negatives that come with each of these options will go a long way to ensuring that you are well informed before any decision is taken. There are so many ways by which good long term care for the elderly can be provided but it begins with you and how far you are willing to help your parents, grandparents or other friends or relatives.




Another area that comes with much concern has to do with finances and paying for the selected home care option you decide on. There are so many people that plan ahead by having in place the very best insurance policy to ensure that elderly care for them during their old age is not a difficult issue with regards to finance. However; for those that do not; pensions are always turned to especially if the family is not well off. Having an elderly care plan insurance can go a long way to ensuring that your children or family suffers less which will also make you more independent. Read More...


Can You Reclaim the Cost of Residential Care?

Reclaiming the cost of residential care is not as easy as it may seem. There are so many people that struggle to pay care home fees, however; the good news for elderly in the United Kingdom is that, if you are one of the many people that have been paying care home fees since April 2004; the probability that you are entitled to care home refunds is high. Long term care is one of the most important stages of one’s life that will always be needed so long as we live, however; making sure all plans are intact will be best.




Many people feel for them are not an option because of reasons best known to them. However; no matter how bad your case may seem, reclaiming the cost of residential care for you is always possible with the right help. If you are wondering whether reclaiming will be possible even after the elderly involved is dead, well yes it is. As long as the deceased paid care home fees since April 2004, you can reclaim the cost.




Although all this sounds very great for families that have had to go through paying very high care home fees since April, 2004; this comes with a deadline. Yes, any family or persons that do not register a claim by the 30th of September, 2012 will be at the losing end. Your right to reclaim the cost of residential care for your loved one or for yourself ends on the 30th of September, 2012. This statement that was issued by the Dept. of Health has made it very important for claimants to move fast in order to pass the deadline. Read More...


The Regulation of Long Term Care Homes

There are so many organizations that have been set up to see to it that, the elderly and their long term care needs are always seen to. This is why; even during this time when there is so much stress and financial melt down, the elderly still have long term care homes. One of the many organizations that have been set up to make sure all long term care homes that are responsible in taking care of the elderly are 100% legal and also using the right facilities is the CQC. What happens is that, before any long term care home can set up or launch, it needs to register with the Care Quality Commission (CQC).




Here, there are that are sent to visit your home care to have a search and make sure everything is in its right place. The Care Quality Commission has set rules and regulations that all long term care homes have to stick to in order to be able to get registered. However; there are so many long term care homes that do not pass these regulations so end up not being registered or given the license to operate. Without meeting the expectations needed, there is no way you will be registered also, the regulations differ from one long term care home and the services they would love to be performing as a health care provider to the other.




Also, every long term care home needs more than just the right facilities and a beautiful building to be registered. This is because; cases of complex or elderly care are not something to be joked about. So many elderly have ended up dead because they did not patronize the services of a credible long term care home. Read More...


Is the Government Finally Going to Change Legislation on Elderly Care?

Well, in the last couple of days, a lot has been said and written about the decision taken by the government of the United Kingdom on reforms for elderly healthcare.




A significant number of elderly people living in the United Kingdom need some sort of assistance when it comes to their care. The United Kingdom government has on the 11th July 2012 discussed and come up with reforms that apparently help the elderly through government-backed Local Authority home loans to pay for long term care. This was announced by the Secretary of State for Health, Andrew Lansley.




Andrew has announced that elderly people can now charge their long term care costs to their property in the form of a loan which does not need to prepaid until death. Read More...


Home loans to help pay for elderly Long Term Care

In the last couple of days the Secretary of State for Health Andrew Lansley has announced proposed changes to the way are paid. It was announced that a scheme that should come into force by 2015 would prevent the need for an elderly person or their family having to sell their home in order to cover the costs associated with providing their long term care.




There is in fact already a Local Authority funded scheme in existence that allows this to happen. The deferred payment scheme is not well publicised as many Local Authorities do not have the funding available to cover the cost and those that do offer it have limited funding so the option may be refused. This scheme allows the Local Authority to pay for your care costs in the form of a loan that is secured on your home. The loan will need to be repaid on death or if the property is sold before this time. The loans available on the Deferred Payment Scheme are interest free until 56 days following the death of the individual. At this point interest will start to accumulate on the loan outstanding until the debt is repaid.




The current proposal to extend the home loan for care scheme to all Local Authorities has indicated that there will be interest charged on the loan from the start of the arrangement. Whilst the availability of funding through the Local Authority my offer the individual more options for example, by retaining their home this could be rented out to provide a level of income that can in turn be used to pay some of their care fees, there would still be a danger that if care continued over a long period of time the funds available my run out. Read More...


Deadline Looming to Reclaim Entitlement to Care Home Fees

If you are a loved one have been paying for your own care since 2004 you may be entitled to make a claim for some or all of these costs to be refunded to you. The pivotal decision depends on many factors but in essence, many people have been paying for their own care when it should have been that assisted them. The way in which assessments are carried out changed in 2007 using different criteria for assessment.




The Government has opened up this claims appeal as there was concern that those elderly people with serious medical and nursing need were wrongly assessed and had to pay for the total cost of care themselves.




Because of the sheer volume of claims being made upon the government now they have issued a deadline for new claims to be submitted of 30th September 2012. Access to free continuing health care on the NHS needs to be tested rather than means-tested, this essentially means that if someone qualified on the ground of their health and medical needs it would not matter if they had assets of not as their care should be funded for free from the NHS. Read More...


Is the Social Care Insurance Scheme the answer to care costs?

Andrew Lansley the Secretary of State for Health has recently unveiled proposal s to help the elderly with the growing cost of care. Last year the Dilnot report on care suggested that a cap on how much an individual should have to pay for their long term care should be instigated. The suggestion was that each person should have to pay no more than $30,000 toward the cost of their care, however, this was perhaps a little unrealistic when we consider the current financial situation the Government is facing. With cutbacks in all public services and public spending it was perhaps a little optimistic of the public to expect this recommendation to be adopted.




Whilst the government took on board the contents of the Dilnot Report their proposals are somewhat watered down. Andrew Lansley is suggesting a which would effectively put a cap on the cost of care at a figure of $100,000. This scheme would not however be free to all, but instead, individuals would have to opt into the scheme to benefit and pay a premium to ensure that their costs for care and accommodation would be capped. Effectively taxpayer would have to stand the 1-10 danger of catastrophic costs exceeding the limit of $100,000.




The Treasury have already stated the current economic situation meant they were "unable to introduce the new system at this stage". So over the past 13 years, there have been two independent commissions, three public consultations and now three white papers. Yet ultimately ever increasing costs of providing care and the increasing longevity of the nation means that the government are not or will ever be in a position where they can offer fully funded care for everyone. Read More...


The Purchase of a Care Plan can Help Protect your Beneficiaries

When the elderly become unable to look after their day to day needs they and their families are faced with the prospect of looking for care. This care may initially be just a couple of hours per day to help with cooking, cleaning, and shopping, which in most part can usually be provided by family members. Because of the pressures of their own busy lives, this may not always be possible and often the extended family may live many miles away.




Professional long term care may be the answer to this problem although this option will usually come at a cost unless your assets fall below the lower means test limit of $14,250. Many individuals may delay getting the care planning they need because they are worried that all they have saved over their lifetime may be used up in paying for care.




By seeking out specialist financial advice at the start of the process they can give you valuable care home fees advice which can put you in a much stronger position to be able to preserve some of your assets for your beneficiaries. By looking at the cost of a potential care home or provision of care in your own home then taking into account any pension income you may receive there would normally be a shortfall between the two. This shortfall can be covered with the purchase of a Care Plan which is a form of payable for the rest of your life. Read More...


Legal Reassurance for Those in Elderly Care

The elderly will need to seek legal advice on many matters in their later years. The services that require may include setting up a lasting power of attorney, making a will and arranging trusts to protect their assets. It may also include conveyancing for the sale of a property or arranging equity release perhaps to pay for their long term care needs.




It is therefore vitally important that they choose a legal professional that they can trust and who is well experienced in dealing with the specific needs of the elderly. A national independent organization called (SFE) can provide details of suitably qualified and experienced solicitors, lawyers, legal executives, and barristers. They are there to help and guide vulnerable older people their families and carers.




Solicitors for the elderly offer a full service of advice on the following subjects: Read More...


Financial and Elderly Care Assessments

Care Assessment
As a nation, we are all expected to live longer and the sad fact of life is that with longevity it is highly likely that many of us will require some form of our later years. When the time comes you can request an assessment of your care needs or for an elderly relative for which you are acting as an attorney.




Your care assessment will be carried out by a Social Worker or care professional and would normally be carried out within the comfort of your own home. It is best if a close relative or friend is in attendance to offer you support.




Following your assessment your local authority will provide a report recommending the type of home care or residential care that is required. Read More...


How Your Home is Affected by the 12 Week Property Disregard

So you have worked hard all your life. You have paid your mortgage and finally, you own your property outright. In your later years, your health starts to fail and your need for long term care has arisen. Many people feel that their only option at this stage is to use their only asset which is their home.




However, it is worth looking closely at how property is treated in the assessment of paying for care. Where an elderly person has a spouse or partner still living in the property or if that home is the main residence for an elderly relative over the age of 60 the value of the property will not be taken into account.




If the individual has a dependant who is under the age of 16 living in the property the value will also be ignored. In some other instances the Local Authority may have the discretion to use the perhaps where someone has given up their own home to move in with the elderly person in order to provide life in care. Read More...


Local Authority View on Deliberate Deprivation of Assets

In years gone by many people believed that there was an unwritten understanding that you could gift away your savings and property to your family or other beneficiaries and it would, therefore, place these assets outside of your means test for paying for long term care. Many families with elderly relatives believed that if assets were passed over a certain length of time ago is would fall outside of the means test conducted by the Local Authority and therefore leave them with nothing to cover paying for care so their local authority would pick up the cost.




In reality, though the Local Authorities were wise to these tactics and they would investigate where an elderly person’s assets had gone and more importantly the reason for their disposal. The deliberate deprivation of your assets is illegal to avoid paying for care.




However, the law is understanding in that it appreciates that people may wish to give away their assets for other legitimate reasons. In some instances a transfer of property may take place in order to mitigate some for the beneficiaries. In order to prove this as the reason for the transfer, the individual would be seen to make a market rate of income if they were to remain in the home after transferring ownership. Read More...


Point of Care Long Term Care Annuities

So you are faced with the prospect of providing long term care either for yourself or for an elderly relative. The first issue to combat is where the care will be provided. I may be beneficial for you to remain in your own home or if this proves to be too costly you may need to reconsider a move into residential or nursing home. Once a decision has been reached about the location of the care the next question will usually relate to the cost of care, who will need to pay and is this method of payment sustainable for the lifetime of the individual.




It may be that when you assess your assets fall below the lower means test limit which is currently $14,250 and therefore will qualify for your care costs to be paid for you by your Local Authority. The other reason why your care costs will be covered would be if you qualified for continuing NHS health care. You may receive this benefit if you are assessed as having a primary need for medical care/nursing care. If you are considered to be a self-funder you will need to ensure that your assets are managed correctly in order to provide an income to cover the care costs for the rest of your life.




The most common way to achieve this is by purchasing a point of care annuity also known as which provides the income required. Read More...


Pre Funded Long Term Care Insurance Products

Due to the ever-increasing costs of providing care for the elderly, many people have taken specialist financial advice surrounding Long Term Care Insurance (LTCI) products. Whilst many of these products are no longer available to new investors it is important to understand how they all work as legacy products are still in existence and could be called upon in the future to help you pay for your care needs.




The types of care plans fall into two categories:




has more or less disappeared from the market, one of the explanations for this is a higher than expected level of claims on the policies, in other words, the underwriters got their calculations wrong. Actuaries would have based the premiums for such policies on anticipated life expectancy and how likely a claim would be for individuals taking into account such things as their current health, medical history, family history and even where in the country they lived. Due to improvements in medical care many, more people can expect to live for longer and therefore the insurance companies would be expected to pay the income to the residential home for far longer than initially expected. Read More...


Using Investments to Pay for Residential Care

With improvements in medicine, the number of people requiring residential care or nursing care is set to rise considerably over the coming years. Many of these elderly people will have worked hard all of their lives and may be facing the prospect of using up their life’s savings in a very short space of time paying for care.




The process will start by the local authority doing an assessment of your care needs and providing you with an individual care plan. This will establish where the care will be provided for example care in your home or a residential or nursing home.




It is then the responsibility of the local authority to conduct a means test in order to establish if you are to be a self-funder. A self-funder is someone who has assets in excess of the upper means test limit of $23,250. Your assets will include all savings and investments held in your sole name or 50% of any jointly held assets. There is an exception though with which is a form of life insurance plan. Read More...


Long Term Dementia Care

Dementia is not a specific disease but a term that covers a collection of symptoms relating to cognitive impairment. Different symptoms will present themselves dependant on which area of the brain is affected.




Someone who has difficulty remembering or struggles to reason is likely to be suffering from cortical dementia. The cerebral cortex controls our ability to remember and an example of this type of dementia would be Alzheimer’s and Creutzfeldt-Jakob disease. If the part of the brain that is affected is the area beneath the cerebral cortex this would be known as .




Huntington’s disease and Parkinson’s disease are both associated with subcortical dementia. Read More...


Using Your Property to Pay for Elderly Care

Paying for elderly care is quite costly. Reports keep increasing of most elderly who have had to sell their homes in order to afford long term care, including residential care. Many elderly people have been asked to sell their homes in order to afford care costs and many have done so. There are other ways of using your home to pay for elderly care, without having to sell it. Finances can be raised from ones home easily to cater for the much needed and costly long term care.




1. Releasing Equity to pay for elderly care:




One way of paying for elderly care using one’s home is through from the home to pay for care. This works when there is equity on ones home to be released. It is difficult to use one’s property when there is negative equity in one’s home. Read More...


How to Survive Being a Carer for the Elderly

Caring work for disabled and elderly people is nowadays on huge demand. The carers or nurses generally stay at the houses of their clients and offer help, companionship, Practical assistance and support. The main responsibilities of the carers are helping them with the mobility, running errands for them, taking them to the various appointments or meets, preparation of their meal, getting in and out of the bed, assisting them with the shopping and pension collection.




There are many caring work agencies which hire carers who can look after the elderly people, usually in their own houses. The carer lives in the client’s house and it is usually called as live in care work. Their stay in the client’s house is limited to a definite period of time. Care work is a flourishing industry and it goes hand in hand with an increasingly aging population. Many clients prefer to spend time in their own houses instead of the nursing homes and want to have complete independence which is why is so important.




Live in care work is the best option for the carer. The working hours are usually 8 hours a day for seven days per week. Along with the salary, the carer gets free food and lodging and is available for another 5 hours on call for any sudden emergencies. Read More...


What are the typical costs for providing Care for the elderly

Paying for any type of care, regardless of someone’s age, can be an expensive thing to do. Often, the care that is needed is so specialized that it can only be done by specialized carers or nurses. No matter how old or young you are, it is always good to know how much you can expect to pay for care. If you are elderly, it is important to know whether or not you will be able to afford care on your own. If you are younger, you may be expected to pay for a family member’s care or want to plan accordingly should something happen to you.




The Anticipated Costs of Caring




or the costs of care homes vary but a good indication of what you can expect to pay was given in an article in the Independent (Macerlean, 2010) who says that the average weekly fees at a residential care home in the UK are $479 and $669 that makes it $24908 per annum for a care home and about $34,788 for a nursing home. This can be quite scary if you are expected to pay for someone else’s care. However, if the person in need of care is deemed to have less than $14240 in capital assets, he or she will not have to make contributions from their capital. Income and benefits will however be assessed and most of it will have to go towards care. It is, however, good to know that the government is willing to help you out. If the local council the individual lives in is expected to contribute towards care, everything except a small personal expenses allowance will be used to fund care. Read More...


Interest Only Lifetime Mortgage

It is very difficult for a retiree to obtain a loan due to the fact that he is no longer a part of the employment workforce and as a result, he does not have a fixed source of income. Without a fixed source of income, it becomes difficult for a retiree to enjoy his retirement. Most retirees long to use their retirement to do the things they never had time to do. However, it is not possible for them to do so because of the little income they get from their retirement planning may only be sufficient to meet their daily needs.




An interest only lifetime mortgage is a great option for retirees who need another way of raising funds in their retirement. One of the most popular forms of raising tax-free cash in retirement are, however, they also have their advantages as well as disadvantages.




The advantages of interest only lifetime mortgagee are summarized below. This type of mortgage allows for monthly repayments of some or all of the interest charged on the loan which results in the mortgage balance remaining constant for the whole term. Read More...


Home Reversion Plan Calculator Your most important tool

There is a little difference between lifetime mortgages and home reversion plans. The main difference is the fact that the lender buys a part of the property instead of lending them against the property value, in which case they pay the property owner a lump sum, and you can tell the difference by using a calculator.




This is critical for someone who wants to enhance their retirement plan, or who wants to raise additional funds for long-term care among other uses. When you want to determine how much you can get out of your property, it is essential that you use a to determine the highest amount of equity you can release.




You can buy a variably percentage of your property and this can range from 20 to even 100 percent of the value. Currently there are various providers offering home reversion plans, in which case you have the opportunity to continue living your property for as long as you live or until you need to check into long-term care. Then you receive a lump sum that is a smaller amount than the real market value of the property share sold. Read More...


The Lifetime Mortgage Explained

Retirement is no doubt, the major turning point in all of our lives. In addition to that, the whole perspective of getting older emphasizes more on the financial restrictions that one has on himself. The regular income on a monthly basis becomes reduced with the age bar of individuals. Managing the monthly expenses and property issues become troublesome for many of them. Some of the equity release schemes are designed to help the senior citizens to gain foothold in the finance sector. The best among them is the Lifetime Mortgage scheme. Before leaping forward, one may ask ?




As this scheme is mortgage secured on property, it is designed in a way to help the senior citizens to cope up with the financial restraints. Ownership of your property at the land registry is solely in your own name without getting transferred to someone else. Full repayment of the loan is necessary when there is some unfortunate death or when the homeowner has to vacate the property due to health reasons.




The lending criteria for this scheme is for people aged 55 or above. The maximum age is between 85 to 95 depending on the provider. Traditionally banks and mortgage associations have been reluctant to extend this scheme to older borrowers. It is considered risky and unprofitable too, not mention a valid reason for repossession of their property in case of any death. Read More...


Different types of annuity

Before we look at the various options that are available for annuity purchase we should first consider what you wish to achieve in terms of income and benefit options and also where the funds will come from in order to complete the purchase.




The majority of annuity policies that are purchased in the UK are done so with the funds from a pension scheme. As an incentive for us to save for our retirement, the government allows tax relief on our contributions to a pension scheme at our marginal rate. Even those who do not earn enough to pay the tax can receive tax relief on contributions up to $3,600 per year. The funds are then allowed to grow in a tax efficient environment until you retire which can be any time after you reach the age of 55. At the point of retirement, you then have a pot of money with which to secure an income payment to last throughout your retirement. You may receive up to 25% of the fund as tax-free cash but the balance of the funds must then be used to purchase a or to move into Income Drawdown.




 Purchased Life Annuity When someone requires an income but has no pension fund they can choose instead to purchase an annuity with their own savings and investments. This type of plan is a purchased Life Annuity. The main difference between this and a lifetime annuity is tax treatment. A purchased life annuity is partially a refund of capital and partially interest from the investment. Therefore only the interest element is subject to tax and would be taxed as investment income. Pension or Lifetime Annuities are considered income and are therefore taxed as earned income. Read More...


Your Annuity Options in Retirement

Probably the most important savings plan you will have for your life is your pension. This may be something that you have set up yourself or had as a benefit from your employer. It is therefore vitally important when you reach your planned retirement age that you received the best possible advice to ensure that you make the right choices. This truly is your life savings and could make the difference between living comfortably in your old age and having to struggle to make ends meet.




Consideration should be given to the level of income that you may require at various stages in your retirement, for example if you retire aged 65 you may wish to spend time traveling and enjoying your new found freedom from work, then as you get older your expectations for travel may curtail leaving you with a lower income required which may then peak in your later year should you require . Many of those reaching their planned retirement age may wish to continue in some form of employment and therefore could opt to phase their retirement and just turn on the income when it is required.




Most retirees will opt to take their pension income in the form of a standard annuity. You are able to take up to 25% of the pension funds as a tax free cash sum and then the balance of funds would be used to purchase an income for the rest of your life. Once the purchase of a standard annuity has been completed it cannot be altered and therefore could lack flexibility. You can however opt to include features such as a continuing benefit to a spouse or partner, guaranteed payments for 5 or 10 years should you die the pension will continue in payment. Read More...


How Poor Health Can Enhance Your Lifetime Mortgage

It is hard to believe but true, that a history of poor health could actually be beneficial to you. If you are looking out for an option to get some tax free cash through a re-mortgage of your property, then your lifestyle and the health status could be a major bonus. Similar to ethical nature as an enhanced lifetime annuity, the equity release industry has adopted the same approach as the fundamental basics of how the enhancement applies is similar to both of these products.




In essence, anything that could have an effect on life expectancy in the financial services world, could be integrated into any financial plan that is linked to mortality. Thus, as both annuities & equity release schemes have actuarial input, then it stands to reason that any impairment to someone’s health could be a factor in determining the deal on the table.




By making an application for new and swapping to one of the three current providers in the impaired equity release market could provide a bigger lump sum than you would otherwise have imagined. Read More...


With the enhanced lifetime mortgage, poor health is your advantage

A Lifetime mortgage is basically a system that offers you a secured retirement life with regular payments for the whole lifetime of the person who has the mortgage. One of the types of lifetime mortgages is the which is particularly ideal for people with poor health. It wouldn’t be wrong to say that people with poor health actually have an advantage when it comes to the enhanced lifetime mortgage. That’s because, with this lifetime mortgage, the mortgage provider caters specifically to people with poor health.




The enhanced lifetime mortgage offers more generous returns and also allows higher borrowing because of the simple fact that these people who have health issues which can be because of a chronic illness. This type of mortgage is suitable for people who have bad illnesses and/or require long term care. These people may require higher mortgage payments to cover their cost of care.




People who have enhanced lifetime mortgage will have the benefit of borrowing more money. There is a general assumption that people with illnesses and chronic conditions have a lesser life expectancy and this is beneficial for the mortgage company as it will have fewer payments to make on account of shorter life of the person. Hence, higher returns and higher benefits are offered to such people in the form of an enhanced lifetime mortgage. Read More...


Use An Impaired Equity Release Calculator Today

An is a tool that could be used to calculate the lump sum amount of cash that you are entitled to receive against releasing equity built up in your house, all without losing the ownership of your property. An impaired Equity Release calculator is also known as enhanced equity release calculator and is completely dependent on the health status of the person as well as the value of the property he/she holds under his/her name.




If you are a person with an age over 55 who are looking for a comfortable retirement solution then you must use an impaired equity release calculator to calculate the cash that could be released when buying an impaired equity release scheme. An impaired equity release scheme is helpful to you especially if you are suffering through some serious health ailment which has the effect of possibly reducing your life expectancy. In such cases, you are not only entitled to receive a larger sum of lump sum money but you are also entitled to get lower interest rate and that too without making any monthly payments!




Smoking, high alcoholism, several types of cancers, Parkinson’s disease, diabetes, any serious ailment related to heart such as strokes, multiple sclerosis, underweight, overweight and many other diseases come under the approved list of health problems that could entitle you for an enhanced equity release scheme. Suffering from any of these implies that you have a lower life expectancy. Read More...


Who are the Best Annuity Providers?

Annuities are financial plans that offer a regular income to pensioners. There is a wide range of annuities on the market today, and different annuities are designed to suit people with different needs. For instance, escalating annuities could be suitable for those who want to ensure that their annuity income does not erode in the face of rising inflation levels in the future, while enhanced annuities may offer those who qualify with much more income than a conventional annuity. Once purchased, an annuity cannot be changed or canceled, so it is important to explore all your options and choose carefully. There are many leading annuity providers on the market today, and comparing their products can help you find the best value.




The most common way to fund an annuity is through a pension savings pot. Pension providers are obligated to offer an annuity deal to customers. However, customers are not obligated to select the first offer that is made. In fact, the open market option allows customers to explore the entire wider financial market, and shop around to find the most suitable annuity at the most competitive rates. As per FSA guidelines, pension providers must inform customers about the open market option and make them aware of the benefits of shopping around.




Shopping around is easy thanks to comparison websites which allow you to compare different annuities from different annuity providers and even get online quotes based on your information. Once you have selected one or more annuities, an independent financial adviser can help you understand each product in more detail and advise about which annuity may work best in your individual context. Independent financial advisers also often have access to exclusive deals and offers from leading , which are not otherwise accessible to customers. Read More...


Equity Release in the UK Property Market

Equity release allows homeowners to benefit from the equity tied up to their property. The money that is raised can be withdrawn to suit the homeowner’s requirements and can either be taken as a lump sum or it can be made in flexible withdrawals. It allows older homeowners to tap into the value of their property without the need to sell up.




It is important to schemes as they come in two different distinct forms - Lifetime Mortgage and Home Reversion Scheme. The Lifetime Mortgage allows homeowners to take out a loan on their property in return for an upfront payment. The homeowner continues to own the property they are releasing equity on. Under this equity release scheme, the borrower will simply has the option to pay the interest that accrues on the loan and this is done on a monthly basis or as determined by the loan provider.




Home reversion schemes form a relatively lower percentage of the industry. Under this form of equity release scheme, the homeowner will sell all or part of their house/property or a certain percentage of it to a bank or a financial loan provider; when this transaction is done, they will still be able to reside in the property. When the property is ultimately sold the homeowner and their estate will only get the percentage of the property’s worth that is remaining. If, for example, you have sold 70%, you will only keep 30% of the final sale price. Read More...


How Can Your Lifestyle Impact on Your Annuity Rate?

The idea of an annuity is that you invest the money you have saved from your pension. This investment will give you an annual income to live on until you pass away. It is one way to ensure that you are guaranteed an income even after you have retired. Part of what makes this kind of investment interesting is that it is tied to your life expectancy. So your medical condition and lifestyle play a big role in the kind of annuity rates you can get and the kinds of annuities that will be best for you.




When calculating your , an annuity provider will take into consideration where you live, your age and your health. They consider mortality rates in the area you live. If the area has a high mortality rate you might get a better annuity, because the insurer will presume that you are going to die in a shorter period of time, and so they will need to make larger payments over a shorter period. This is not really something that you have control over, but you do have control over your health and lifestyle.




If you are approaching retirement age and beginning to think about an annuity, it is also a good idea to think about getting your health in order if there are any causes for concern. If there is, then it is a good idea to look into an enhanced annuity. On average this is available to about one in three annuity seekers. Basically, the way it works is that if you are in poor health then you can buy an enhanced annuity which will give you a greater pay out over a shorter period of time. Read More...


Do You Qualify for an Enhanced Annuity?

A couple of years before you retire you will begin to think about the various options open to you for managing your money saved in your pension. There is a wealth of information available and it will take some time to process it all. Annuity rates vary, as do the kinds of annuities that are available. One of the annuities that you should have come across is an enhanced annuity.




If you are considering an annuity at all you should check to see if you are eligible for an enhanced annuity because it will mean a higher annuity rate, and therefore a higher income. There are certain criteria that need to be satisfied in order to have an enhanced annuity, but the criteria are not complicated and are more inclusive than you might think. Once you have bought an annuity, your plan is set, so it is very important to try to cover all your bases before you make the final commitment.




Since a standard annuity works on the assumption that you are in good health, it calculates your life expectancy accordingly, giving you a lower income over a longer period of time; while an enhanced annuity is based on a lower life expectancy. This means that the calculation will estimate paying you over a shorter period of time but with a higher regular income. Thus, if you have a health condition you may very well qualify for an . Read More...


Alternative Annuities: Are They More Flexible for Income in Retirement?

If you have decided that an annuity is the best financial option for your retirement, and are looking at what the options might be, you may have been surprised by the various kinds of annuities that are available. Part of the research that you will need to do is to go through the various options and decide which ones might suit you best. It is always wise to consult an independent financial advisor before making any firm decisions but it is also a good idea to do your own research and find out what kinds of annuities are out there. A standard annuity will give you a fixed rate of return on the money you invest from your pension. You will receive an annual from the money you invest, at a rate that will be determined by your health, where you live and your initial investment.




The rates for these standard annuities are not what they used to be and so it is a good idea to see if you qualify for any alternative annuities like enhanced annuities. Even if you don’t there are other options besides the standard annuity, such as the fixed term annuity. This is a kind of annuity with a certain time limit.




When the date of your annuity plan expires, the income that you have saved in your annuity plan will be given to you. This amount is comprised of your initial sum you saved and the interest the sum has incurred. Once the payment of this sum has been completed the plan is over. As the title suggests it is an annuity that lasts for a certain period of time. It can be useful for saving money it has good interest rates and is pretty flexible. This is why it is thought to be one of the better annuity plans. Read More...


Questions to Ask Yourself Before Committing to Purchase Your Annuity

Committing to an annuity is a big decision. It will set the financial parameters of your retirement and the rest of your life, so it is very important to make sure that you are getting the best possible deal for your purchase. Not only are there many different kinds of annuities, and conditions determining the annuity rate you can expect, there are also possible additions to your annuity that it is a good idea to consider. So before you, you need to consult an independent financial adviser and you need to ask yourself these questions.




If you are thinking about an annuity, chances are you have been approached by your pension provider because you are nearing retirement age. When this happens they will go through all your information and offer potential options for the kinds of annuities that are available to you. There will be a lot of jargon and it will be difficult to follow.




So, the first question you need to ask yourself is if you understand all the options that are open to you. If you do not, then you can seek information online or through your financial adviser. There are a finite number of options, but you do need to understand the differences between them. Some good questions to ask about the suggestions are if it is a variable annuity, or fixed? If it is a deferred annuity or an immediate annuity and is it a market-linked annuity? Read More...


Annuity Products Guide

Buying an annuity can be a confusing process, but it is something that will highly benefit you in the long run! It is the best way to turn your hard-earned and long saved for pension into a source of income that will last you for the rest of your life. Many people end up throwing away a great deal of money so by simply shopping around for the right annuity for you, you could manage to increase your retirement income by up to 30% Now that is definitely worth the effort.




The process is complicated and it is therefore of the utmost importance that you know what you are doing at every stage of the process. There are so many different options, so take the time and patience to ensure that you get the absolute best rate to boost your income.




The best way to find what is right for you is to go through an advisor that specializes annuities. An independent advisor will tell you exactly what you need and who can provide it for you, and you can find these online or in directories. You don’t need to go sifting through ’s and books to find the information you need, when a trusted and reliable professional can do the job for you. Read More...


Basics of buying an Annuity.

For those who have no idea about what an annuity is, it is basically an agreement between an individual and an insurance providing company where a certain amount of money is paid either at once or on a regular basis so that there is a steady flow of income once the individual retires. However, annuity plans can be drawn up as per an individual’s requirement. With a little bit of guidance from the right sources, it is possible to make wise investment to secure the future r.




Let us learn a little more about Annuity

We shall now try and understand the different types of annuity plans that can be accepted.




·         Initial payment: One can choose between making a lump sum payment right at the beginning or pay monthly instalments to the insurance provider until the amount that has been agreed upon is reached. Read More...


If Looking Towards Retirement Finance an Equity Release Calculator Might Present a Solution

 




As the UK is experiencing a rapidly ageing population, more people are struggling to maintain their lifestyle throughout their retirement. With the current economic climate, there are even fewer potential avenues for monthly income generations, left available for those approaching retirement age. This can leave many retired people facing extreme stress as they face the possibility of a long retirement with very little disposable income.




Equity release products and schemes can present a viable solution for many of these individuals. However, there is such a wide variety of schemes and differing qualifications, that a great number of people are confused by whether they could release sufficient capital from their home to provide an adequate financial solution. With an equity release calculator, UK residents are able to gain an insight into the possibilities equity release may facilitate.

•    Why are the figures different?

Equity release schemes are generally based on a lifetime mortgage. There are strict rules governing these types of financial products in order to comply that no individual owes more than the value of their property or leaves a debt to their estate upon their death. With an equity release calculator UK home owners can collate the information for a number of factors and which will help to illustrate how much equity would be available for release.

•    Isn't it easier to consult an adviser?

While there are a number of advisers and brokers who have the qualifications and experience to advise clients on the feasibility of equity release many people are hesitant to explore the options as they are unsure that they would qualify for equity release or release sufficient funds. This is especially applicable when a home owner has debts or an existing mortgage on the property, as people believe that there may not be enough money released to pay off any remaining debts and provide financial assistance to meet the needs for a comfortable lifestyle. Since in a number of cases, this would require a sizeable amount, the home owner may feel they are wasting their own and an adviser's time to take this route further. click here for further information.

•    How can an equity release calculator help?

In using an equity release calculator, UK home owners have generally been able to gain a unique insight into whether equity release would be beneficial for their circumstances. It can confirm whether equity release is a feasible method to raise capital from their property without needing to move home. Since equity release schemes allow the home owner to retain their right to reside in the property, this can provide a great solution in a good number of cases. Using the initial figures produced by an equity release calculator, UK home owners can then seek out a professional adviser to explore their options more fully.

•    What factors are used for the calculations?

There are a variety of factors considered when using the calculator. This will include the age of the home owner or owners, the current value and location of the property, the amount of debt or mortgage remaining and any pre-existing medical conditions of the applicants. When the information for these factors is collated, it can allow the calculator to compute the feasibility of equity release for the specific circumstances and the amount of equity which could be potentially released.

•    Why are these factors applicable?

The majority of schemes have strict guidelines which must be complied with in order to grant equity release. While the age of the applicant and value of the property are the main factors in a lifetime mortgage, other factors can influence how much an equity release provider would be willing to finance.

For example, generally for applicants aged eighty or over considering a lifetime mortgage, the provider may authorise an equity release of up to fifty per cent of the value of the property as the loan amount. Age is one of the determining factors as the interest for the loan will accrue on the loan since no monthly payments are made and the total debt will continue to increase until the property can be sold when the applicant passes away or goes into a long term care facility. At this time, the property will be sold, the loan paid off in full and any remaining funds are left to the beneficiaries.

It is important to consider that when using an equity release calculator, UK home owners will only gain an illustration of the potential equity release available on a lifetime mortgage. There are other more specialised schemes which have different criteria and may offer a different solution. Companies such as Equity Release Supermarket offer the use of calculators which will provide the maximum potential loan amount available and this may vary according to the specific conditions set by your chosen equity release provider. Read More...


Raising Standards of Advice in the Lifetime Mortgage Market

Many people considering a drawdown lifetime mortgage or other equity release scheme may be a little concerned about the press the industry has received in the past. Like many financial products, the equity release sector has seen a number of ups and downs since they were first introduced in the 1960's. They received a great deal of bad press in the 1980's and 90's due to their lack of regulation, which means that now many people approach the thought of equity release with a little trepidation.

The Early Days of the Drawdown Lifetime Mortgage
The first equity release scheme was released in 1965 establishing an equity release industry. In the 1970's Allied Dunbar launched the first home income financial product. This plan provided an interest only fixed rate mortgage which was used to purchase annuity and provided a fixed income for the remainder of the customer's life. The interest rate was fixed and deducted from annual annuity payments meaning that customers had no worry about falling behind in any payments. This type of product was made unavailable in the 1990's after changes were made to the taxation of annuities in the Budget.

The Troubled Time of the Drawdown Lifetime Mortgage
In 1988 a new style of equity release scheme was introduced. They were called home income plans and were similar to the Allied Dunbar model of the 1970's. They were based on purchasing an investment bond or annuity to run alongside an interest only mortgage which was usually set at an uncapped variable rate. The monthly pay out from the annuity was designed to pay off the monthly interest in addition to providing an income. The main troubles with this type of plan arose in the early 1990's when the interest rates rapidly rose and house prices fell considerably. This left many borrowers with a negative equity situation and monthly arrears. Many families could not move home but had debts which they had no way to pay off. Equity release was labelled as expensive and inflexible and a great deal of bad press began.

SAMs or Share Appreciation Mortgages created another blow for the equity release industry when they were introduced in the mid 1990's. A SAM allowed a home owner to release the equity from their property as an interest free loan which the customer could pay back as a percentage of future growth of their property value. This was based on a prediction that there would be a rise in property values of 4.5% per year. However, then property prices spiked in the late 1990's, the rise was actually equivalent to 11.7% per year which left SAM customers owing a massive amount which was disproportionate to their original loan.

Consumer Protection for the Drawdown Lifetime Mortgage
There was obviously a need for consumer protection and in response to this the Safe Home Income Plans or SHIP was established in 1991. This body established a number of best practices and guidelines to ensure consumer protection. These plans are now representative of a majority of drawdown lifetime mortgage providers and the equity release industry and they ensure that their members abide by a set of strict regulations.

Many of these rules centre around ensuring that the consumer has a safe and reliable product and they are presented with all the information and knowledge needed to make an informed decision about their drawdown lifetime mortgage or other equity release product. The most important consideration about SHIP schemes is that they have a no negative equity guarantee, which provides the assurance that no client will ever owe more than the value of their home or leave a debt to an estate.

The Changing Marketplace and FCA Regulation
As the turn of the century approached, more SHIP schemes were readily available for consumers and many large financial institutions came into the drawdown lifetime mortgage marketplace. Household names such as Aviva, Liverpool Victoria and Norwich Union provided an easy and safe way for consumers to release the equity from their home. The equity release market doubled in a short time between 2002 and 2003 but the bad image which had been created during the troubled time of the 80's and 90's restricted the industry growth even further.

Many consumers were reluctant to commit to a drawdown lifetime mortgage because of the lack of regulation. However, in 2004 the Government announced that the FCA would begin regulating the equity release industry. This change meant that only qualified advisors would be able to recommend equity release schemes and all potential costs and fees must be provided so the consumer could make an informed decision.
The FCA established strict monitoring of the sale of all products and fined any company which failed to comply with these regulations.

Today's Equity Release Market
The equity release market now provides a wide variety of options such as interest only or drawdown lifetime mortgages and home reversion plans. The FCA regulations ensure that consumers are protected and can have the opportunity to use their largest asset to provide options for their retirement. With the country's growing population of retired people, it is believed that very quickly equity release will become as common as conventional mortgages.

Can I Remortgage My Old Equity Release Scheme?

For those people who took out an equity release scheme when they retired several years ago, it may seem like there are better options which are now available. This is because the equity release industry has seen dramatic changes in the last few years. Before making any enquiries about whether you should remortgage your old equity release scheme, you should speak to your remortgage solicitors, but there are some factors which warrant consideration.

Why has the equity release market changed?
As your remortgage solicitors would advise you, there have been a number of significant changes in the equity release industry. Equity release products are now heavily regulated which has increased the pressure for financial institutions to supply a greater variety and number of products which are available.

Additionally, in the early days of equity release, there were only a handful of original equity release providers. However, due to the increased demand, more and more financial institutions have begun to offer equity release schemes and products. These providers offer a very diverse selection of different products which are suited to myriad circumstances. The introduction of new product ranges and schemes has increased competition which has encouraged far more attractive rates and terms than would possibly have been originally offered.

First steps of remortgaging an equity release scheme
Before making any enquiries with equity release providers, it is important that you consult with your remortgage solicitors to check whether remortgaging your equity release is feasible. Equity release schemes can involve complex terms and conditions which will need to be adhered to. Many equity release products were designed to be lifetime schemes, therefore there may be restrictions or penalties applied which may make remortgaging impractical.

For example, some schemes have an early repayment penalty which can be a percentage of the balance. This would need to be calculated and compared to the potential gains offered by a new scheme. While initially it may seem like a great deal to save one or two per cent on your interest rate, the savings would need to outweigh any potential penalties.

It is important to fully understand any financial implications of early repayment of your current equity release scheme, before making any decisions about remortgaging or switching providers. It may be worth speaking to your current provider to see if there are any alternative schemes which you could switch to without incurring any penalties or charges. Many equity release providers now offer extremely competitive schemes and they may wish to retain your custom and offer an attractive deal.

Additionally, the value of your property would need to be considered. The UK housing market has suffered a great deal in recent years and if your scheme was based on a higher property value than your property would command in today's market, it may not even be possible to remortgage your equity release scheme. Equity release providers have a strict loan to value ratio which must be adhered to. However, you should consider that you and your partner may qualify for a higher rate of release now because you are older. These factors will need to be assessed and checked to ensure that remortgaging is the correct option for you.

Researching your options
If you are considering switching to another equity release scheme or company, it is always a good idea to thoroughly research your options. There are a number of equity release calculators available on provider websites to make initial enquiries and determine the terms and amounts involved in the schemes which are currently available in the marketplace. However, this should not replace the professional assistance of an experienced equity release adviser. An independent equity release adviser will be able to check the qualification criteria for the various schemes and assist you in finding the best possible policy. You will then be able to assess the potential benefits and determine whether they outweigh any potential fees or costs associated with the early repayment of your current equity release scheme.

It is important to consult with a reputable and experienced professional to gain an accurate insight into the available schemes. This can assist you in making a more informed decision about whether remortgaging is the best option for your specific circumstances.

In the current equity release marketplace and financial economy, switching to another equity release scheme or provider may represent a sound financial choice. However, in order to determine whether it is not only feasible but best suited to your circumstances you will need the advice of experienced professionals including a specialist adviser and remortgage solicitors.

How Long Does an Equity Release Application Take from Start to Finish?

For many people considering an equity release scheme, a great number wonder about the equity release application process. Many people are hesitant to begin the process without knowing how long it will take from starting the application through to the finish when the funds are released. The actual time taken can depend on a variety of factors, which can affect the application. However, there is a regulated process, which can make it easy to follow.

How to Start the Equity Release Application Process
The first step in the equity release application process is to find a specialist advisor. Even if you have researched your options and are confident that you have found the scheme you want, the equity release industry is regulated and you must have an advisor to begin the application. Finding a qualified and experienced advisor need not be stressful and there are a number of resources online including the Equity Release Council website which provide information for equity release advisors locally and nationwide.

Your advisor will complete a factfind document. This contains your information and basically ascertains your current financial situation, what your objectives are and what your attitudes are towards inheritance. This document allows the advisor to assess your options which would be best suited to attaining your goals.

As a major component of the equity release application process, your advisor must explore if there are any alternatives which would be better suited to your needs. These alternatives include:

1. Downsizing to a smaller and less expensive property and releasing the equity in your current home in this way.
2. Whether there are any benefits which are currently not being claimed but could assist you financially. For example, council tax credit or pension credits.
3. If there are any family members including children who could provide some financial assistance.
4. If there are any other forms of credit or loans such as personal loans, conventional mortgages or credit cards which would be better suited to your circumstances.
5. If an additional income can be achieved by renting out part of the property or taking on a lodger.
6. If the primary objective for the equity release is to fund home improvements, are there any grants which could provide financial assistance.
7. If there are any current existing savings which could be used rather than borrowing on an equity release scheme.
8. If there are any ways to reduce expenditure to make financial savings.

Once the advisor has assessed whether any of these scenarios would provide a more suitable alternative to equity release, they can see if equity release is the correct option for your circumstances. If all the alternatives have been eliminated by speaking with you, the advisor will explore the equity release options which may be suitable for you. These will include whether you wish to make a monthly contribution towards the interest, whether you wish to leave any inheritance for your beneficiaries and what your attitude to risk is.

How Does the Equity Release Application Process Proceed?
After this initial paperwork is completed, the advisor will then explain the equity release application process. This includes:

•    The provision of a Key Facts Illustration (KFI). This documents the scheme including the costs, fees and charges which are applicable, future balance and any restrictions or limitations of the product.
•    Completion of the application form: The application form is completed by the advisor and sent to the equity release provider.
•    Property Survey: Upon receipt of the application, the equity release provider will then instruct the valuer to arrange an appointment and conduct the property survey.
•    Instructing of the Solicitor: The solicitor should now be instructed to act on your behalf. They will send you an initial questionnaire about your information including your existing mortgage details and provision of identification.
•    Provider Makes the Offer: Once the valuation has been received and it has been confirmed that everything is satisfactory, the equity release provider will then make the offer for the equity release scheme.
•    Solicitor will Complete Paperwork: Once the solicitor has received the offer, they will contact you to schedule an appointment. This will allow the paperwork to be completed, including the mortgage deed being signed and a SHIP certificate being completed. This documentation will then be sent to the equity release provider and the solicitor will request the funds.
•    Release of Funds: Once the provider has all the legal requirements in place, they will release the funds to your solicitor. The solicitor will deduct their fees and send the remaining funds to you, completing the equity release application process.

The length of the equity release application process can vary. Generally, the entire process will take between six to eight weeks. However, if your solicitor is not experienced in equity release transactions it may cause delays. Alternatively, some equity release providers aim to provide a quicker process which can reduce the time to as little as four weeks. If you have chosen a more complex equity release product such as a home reversion plan, this could take up to ten weeks to complete.

What is the Role of the Equity Release Solicitor and Do They Offer Advice?

The legal component of any equity release application tends to be dominated by the two sets of solicitors which are used by the customer and the equity release provider. The equity release industry differs from many financial service products as it is highly regulated by the Equity Release Council. This trade body has established a number of rules and regulations which must be complied with by all advisors, solicitors and providers. The primary and most important rule is that the client and equity release provider must engage separate legal representation.

How Do I Know Who My Provider Will Use for Their Legal Services?
Many equity release lenders have their own preferred legal representation. For example, Aviva use Eversheds for their conveyancing. However, this need not be a primary concern. Applicants can choose any legal representation providing they can complete conveyancing and they are not just a licensed conveyancer.

While you are free to choose any solicitor, it is advisable to choose one who is experienced in dealing with equity release schemes specifically. Using a solicitor who is unfamiliar with the process can cause delays in your application and slow down the release of your funds. Many experienced equity release solicitors are members of the Equity Release Solicitors Alliance (ERSA). These legal professionals specialise in equity release and they have been fully vetted.

Advantages of Choosing an Equity Release Solicitors Alliance Member
There are a number of advantages associated with choosing an Equity Release Solicitor Alliance Member for your legal representation. These include:

•    Speed: Equity Release Solicitor Alliance members are intimately familiar with the equity release process and the rules and regulations which govern the transaction. This means that they tend to offer a far quicker service than many other solicitors.
•    Increased Number of Solicitors in the Practice: Often members have many experienced solicitors within each practice, which means that should an unforeseen event occur with your specific solicitor, it is unlikely to delay the equity release process.
•    Better Communication: Many ERSA members favour online communication and this enables far better lines of communication.
•    Lower Costs: Generally, because of their experience and the fact that they are dealing with a large volume of equity release applications, ERSA members can offer lower costs for their services. This is usually only £395 + VAT with disbursements available. This can represent a significant saving in your overall costs.

Disadvantages of Choosing an Equity Release Solicitors Alliance Member
As with any transaction, this may not be the best possible solution for you. There are a number of disadvantages associated with using an ERSA member. These include:

•    They May Not Be Local: There is a very good chance that the ERSA member who is acting as your legal representation may not be geographically local to you. This will prevent you from popping into their offices if you have any questions or concerns. It will restrict your methods of communication as you may only be able to deal with them over the phone, by post and through email.
•    You May Need Witnesses: As the ERSA member may not be local to you, you may need another solicitor to witness any signatures on your documentation.

Will the Solicitor Provide Advice?
The solicitor is used to act on behalf of either the applicant or the lender. They confirm the identification and property status of the applicant. They ensure that all checks are correct and in order, file necessary paperwork and handle the release of the funds.

The only advice which is given is to check that the client understands the implications of the equity release transaction and that they understand the consequences, experiencing no undue influence. They cannot provide advice as to whether equity release is the best possible option for you.

If you are considering equity release, it is worth taking the time to investigate whether an Equity Release Solicitor Alliance member is the best person to represent you. They can speed up the application process, ensuring that it operates smoothly and you receive your funds as quickly as possible.

The Alternatives to Releasing Equity

For many people thinking about equity release they may have failed to consider the alternatives to releasing equity. However, these alternatives may represent a better financial option. It is important to explore any potential alternatives to releasing equity and equity release advisors are legally obliged to ensure that you are aware of the alternatives and the implications of proceeding with an equity release scheme.

Why Do Advisors Question About the Alternatives to Releasing Equity?
The equity release industry is highly regulated by the FCA to ensure that consumers are protected. The main reason for this is the potential long term consequences which are associated with an equity release scheme including the amount of inheritance it is possible to leave to your beneficiaries. Each advisor must explore the alternatives to releasing equity and make you fully aware of the costs which are applicable with the scheme in addition to any potential restrictions or limitations associated with equity release. This will allow you to make an informed decision as to which is best suited to your needs.

What Are the Alternatives to Releasing Equity
1. Downsizing in to a less expensive property to release the equity in your current home in this way. This option would mean that you would need to move home, but would not place any restrictions on your new property. However, many people are reluctant to leave their home and would rather avoid moving. Additionally, the property market may mean you might struggle to sell your property.

2. Whether there is any form of benefits which is currently not being claimed for but could assist you financially. For example, council tax credit or pension credits. It may be possible that there are some financial benefits which you would qualify for but are not currently receiving. This could provide you with additional disposable income which could reduce any current financial strains or pressures.

3. If there are any children, grandchildren or other family members who could provide some financial assistance. This may provide a potential alternative to releasing equity. However, many people consider equity release as a measure for inheritance tax planning or to aid children or grandchildren to enter the property ladder for themselves. In these instances, it would be counterproductive to receive financial assistance from family members

4. If there are any other forms of financial product such as personal loans, conventional mortgages or credit cards which would be better suited to your current circumstances. If you are suffering from short term financial issues, there may be a form of credit which is better suited to your requirements. However, many other forms of credit may not be a viable option for you. Many loan companies are prejudiced against older people with limited disposable income. Additionally, there may be interest charges which are far higher and make this option extremely costly.

5. If an additional income could be accomplished by renting out a part of your property or taking on a lodger. This form of additional income can be a valid alternative to releasing equity for some people. However, in many cases, people are reluctant to subject themselves to sharing their home with strangers or other people. This option will compromise the privacy of the home owner and it may not be an option which older people living on their own would consider.

6. If the primary aim for the equity release is to fund your home improvements, are there any grants which could be used to provide financial assistance. There are a great number of grants available for home modifications and improvements. There are also charitable organisations who offer assistance for older people. It is important to explore this alternative to releasing equity if you are planning on using the lump sum to invest in property improvements.

7. If there are any current available savings which could be used rather than borrowing on an equity release scheme. If you have savings which are currently in short or long term investments, they may present a better alternative to releasing equity. However, in cases where you may be trying to plan for inheritance tax mitigation or to secure an additional income, this may not be possible. Alternatively, you may have little savings and require the lump sum for your own reasons.

8. If there are any ways to reduce your expenditure to make some financial savings. If you are looking to use equity release to increase your disposable income, it is important to explore if there are any ways to make financial savings through budgeting. However, many people don't want to compromise their quality of life and wish to enjoy a comfortable retirement the lump sum or additional income could provide.

If you are considering an equity release scheme, it is important to explore the alternatives to releasing equity. This will ensure that you are happy and confident to proceed. Your equity release advisor will explore these options with you to ensure that it is the option best suited to your needs and you have made an informed decision.

Advice on Which Equity Release Schemes Have No Early Repayment Charges

For many people considering an equity release scheme, no early repayment charges is one of the last things they think of. The main reason for this is that many people consider it a lifetime mortgage and have no intention of repaying early. However, there is always the possibility of unforeseen circumstances which would require you making an early repayment. If you have given this option little thought it can be extremely costly with large penalties if you have chosen the wrong plan which does not support no early repayment charges.

Reasons Why You May Need No Early Repayment Charges
The future is not set in stone and when considering an equity release, it is important to evaluate this matter very carefully. It is imperative that you discuss with your advisor if you have a potential retirement strategy which would require the plan to remain in place or if there is a possibility that you could repay it. For example, you may anticipate downsizing to another property, receiving a lump sum of an inheritance or even a lottery win. These ideas may be only a dream. However, it is important to consider whether your equity release scheme allows for no early repayment charges should your circumstances change and you wish to repay the loan.

What Are the Early Repayment Charges?
The early repayment charges or penalties can vary according to the specific details laid out in your equity release scheme. Some schemes include heavy penalties if the lifetime mortgage is repaid partially or in full early. Your advisor will provide details of any restrictions, limitations or charges which can apply to early repayments. These details will be included in the Key Facts Illustration. However, if early repayment is a possibility, you should discuss it with your advisor. This will allow the advisor to locate schemes which specifically cater for these circumstances and charge minimal early repayment charges.

Are There Instances Where No Early Repayment Charges Apply?
There are a number of equity release products and lifetime mortgages which allow for early repayment with no penalties or charges. However, there are also a few instances in which no early repayment charges can be applied. These include:

1. Once the fixed term of the early repayment charges has expired. For example, Liverpool Victoria has a number of policies which have a tiered structure for early repayment penalties. The charges are set as 5% for the first five years of the loan; 3% for the next five years; and then no early repayment charges after ten years. This type of plan allows that once the plan has been established for more than ten years, there are no charges in cases of partial or full early repayment.

2. Older plans: Some older equity release plans allow for no early repayment charges. For example, Mortgage Express plans only had early repayment charges for five years and none were to be charged on any early repayment after this period. New Life Mortgages and Hodge Lifetime had similar plans. Therefore now these plans are older, they can be repaid with no penalties applied now.

3. Gilt rates are favourable for repayment: Gilts are bonds which are issued by the Government in order to raise money. There are a number of different gilts available and many lifetime mortgages and equity release schemes are linked to the rate of government gilts; for example, Just Retirement and Aviva product ranges. Generally, if the rate of the gilt has risen since the inception of the plan, it may be possible to repay without a penalty. If the rate falls, a penalty which could be up to 25% of the original sum could be applied.

4. Local building society plans: It can be possible to secure a scheme with no early repayment charges. The Vernon Building Society offers such an equity release lifetime mortgage. It is not widely advertised and is only available to certain advisors including Equity Release Supermarket. However, there is a stipulation that the client must live within a twenty-five mile radius of the society's head office in Stockport.

5. No charges when downsizing: Hodge Lifetime offers a plan called the Flexible Lifetime Mortgage. This plan allows for no charges to be levied if you downsize at least five years after taking out the equity release. This can provide a greater flexibility if you suspect that you may consider downsizing in the future.

There are a number of costs and charges associated with equity release schemes and choosing the wrong product can be a costly mistake. It is important to discuss all your future plans with your equity release advisor. This will allow them the opportunity to source a scheme which will provide minimal or no early repayment charges if your circumstances change. This can require a little forward planning but failing to consider this could result in heavy penalties.

Retirement Home Plan Reviews Help Understand Lifetime Interest Mortgage

For many people, the concept of equity release and lifetime mortgages can be a little overwhelming. However, there have been a number of products on the market in the recent past, which have bridged the gap between conventional and equity release mortgages. The Halifax Retirement Home Plan reviews have been instrumental in helping home owners to understand the concepts behind lifetime mortgages.

What was the Halifax Retirement Home Plan?
When reading Halifax Retirement Home Plan reviews, you may be unaware of the specific details of the product. This now withdrawn product was offered by the High Street Bank the Halifax. It was specifically designed for retired people and allowed for borrowing against the value of their property. However, unlike a number of equity release schemes, the Home Plan allowed for home owners to maintain a greater control of the balance of the loan by making interest only payments each month. This is similar to a conventional mortgage in which the home owner makes a monthly payment to cover the interest and any capital repayment. The term of the mortgage could extend to up to forty years, which allowed for a greater degree of flexibility, allowing the loan to be repaid when the property was sold. This could be upon the death of the home owner or in other circumstances such as the home owner selling the property and downsizing to another home.

How the Halifax Retirement Home Plan Reviews Help Understand Equity Release
There are a great number of equity release schemes and plans, with one of the most common being a lifetime mortgage. With the Halifax Retirement Home Plan reviews, many people are able to grasp a deeper understanding of the terminology and restrictions which are present in many lifetime mortgages. Many plans now offer interest only options which are similar to the Home Plan. Therefore, by reading the reviews which are generally written in easy to understand language, you can obtain a good grasp of how a lifetime interest only mortgage would work.

The Limitations of the Reviews
While each plan would have different limitations and terms, these reviews can be extremely helpful in assisting home owners with limited knowledge of financial services terminology to understand the concept of equity release. Of course, an interest only lifetime mortgage may not represent the best option for your circumstances. For example, you would need to consider whether you have sufficient disposable income available to cover an interest payment.

Many people consider equity release to boost their quality of life during retirement, which may be negated if you are required to fund a monthly payment. If you are unconcerned about leaving equity in your property for your beneficiaries, you may be better suited to a roll up lifetime mortgage or other equity release scheme. These require no monthly repayments and allow the interest to be rolled up and compounded on to the balance of the loan. This can increase the balance of the loan significantly over time, but if you are unconcerned by ensuring that you have sufficient equity to cover the loan and provide some funds for your estate, it may provide a better option.

Assessing All the Options:
If you are considering any form of equity release, it is important that you assess all the options available to you. There are hundreds of different schemes and plans which can be suited to your specific circumstances. There are a number of online tools which can assess your qualification for specific schemes and independent advisers can provide a number of options which would be suitable for your circumstances. It is important to consider all the schemes that you would qualify for in order to determine the best possible option for your specific requirements and circumstances.

If you are interested in an interest only lifetime mortgage but are unsure about the concepts and fundamentals, the Halifax Retirement Home Plan reviews can be a good starting point. Don’t be put off considering the reviews, simply because this particular product is no longer available for new customers, as the reviews can provide a good foundation of knowledge. This will enable you to move forward with your decision about equity release, confident that a lifetime mortgage is the option which is best suited to your needs. However, it is important to check that you understand the specific conditions of your chosen scheme fully before you commit to proceed. This will ensure that you are fully aware of the implications of equity release and assured that it is your best option.

Accurate Equity Release Calculator

For many people over the age of fifty five, the possibility of qualifying for conventional mortgage or secured loans reduces dramatically. This is usually because of their age and potentially restricted income once they retire. However, equity release schemes have been specifically designed for this age group and they are designed to provide lifetime finance without prejudice for their income.

What are equity release calculators?
Equity release calculators are tools which are available online and offer confidential free information. They are pre-programmed to take the details supplied and apply it to the lending formula of the specific equity release provider to determine whether you would be eligible for the equity release mortgage or secured loans, and how much you could expect to receive with particular schemes. The equity release calculators ask a number of questions about your personal information including your age and gender and your property. This is to ascertain the amount of equity which is contained in your property and the anticipated duration for the equity release loan. There are a number of different equity release lenders and each will have their own criteria to determine whether your circumstances are suitable for equity release.

Some equity release calculators will also consider other factors such as your health status. There are a number of lenders who offer impaired life plans for those who have a history of poor health or a terminal condition. These tend to offer a greater percentage of equity release based on your expected lifespan being impaired by your medical condition.

Why are equity release calculators necessary?
Unlike conventional mortgage or secured loan where there is a specific formula to calculate the maximum loan possible, equity release criteria is different. Your property value is still important, but the products are designed to be a life long plan. Therefore the lender needs to anticipate the duration of the loan. The interest for the loan is usually compounded on to the balance annually and there are strict regulations which guarantee that equity release schemes will not cause an estate to inherit a debt from a property. This means that the lender cannot simply lend against the full amount of equity in the home. They need to anticipate the interest being compounded over a specific number of years and ensure that there is sufficient equity in the home to cover this. In the event that after the death of the home owner, there are excess funds available from the sale of the property, the remaining funds will be allocated to your beneficiaries through your estate in the usual manner.

Finding an accurate equity release calculator
There are a great many different types of equity release calculator which are available on websites of equity release providers and brokers. In order to obtain the most accurate results, it is important to use several different calculators. Ideally your chosen calculators should be from an independent broker, who has a wider access to products throughout the industry. Basic internet searches will reveal the websites with equity release calculators, but you should be wary of any calculator which insists on personal contact information. Using these may mean that you receive sales literature, calls and emails. Try to choose a calculator which offers more in-depth information including scheme details and interest rate illustrations. This will enable you to accurately compare the products which are best suited to your circumstances.

In order to obtain the most accurate results, you will need to ensure that the information you supply to the calculator is as up to date and accurate as possible. Under or over estimating the value of your property can have a huge impact on the accuracy of the maximum amount which can be borrowed. Therefore it is worth taking the time to double check your information including requesting an up to date balance on your current mortgage and using some independent property valuation websites to assess the current value of your home. Many of these types of website offer a great degree of accuracy based on the property sales which have completed in your area in the very recent past.

If you are interested in releasing equity from your home, an accurate equity release calculator can be an excellent starting point for equity release mortgage or secured loans. However, you must bear in mind that although these calculators can supply accurate information, they should not replace the expertise of specialist advise. You should always consult with a specialist adviser or broker before making the decision to proceed with an application. Professional advice will provide the assurance that equity release is the best solution for your requirements and that you are proceeding with the scheme which is best suited to your needs.

What is a Drawdown Equity Release Scheme and What are its Advantages?

If you are considering an equity release scheme, you may have seen LV= equity release advertisements and wonder about the details of drawdown equity release schemes and whether they would be beneficial in your specific circumstances. In order to fully assess the advantages, it is important that you have a basic understanding of the equity release schemes which are available.

The Equity Release Marketplace Today
Many people who considered equity release in the past are pleasantly surprised by the equity release marketplace today. In the past, there were relatively few equity release providers offering a very limited selection of plans and schemes. However, with the introduction of a number of different and household name companies such as LV=, equity release is now an extremely competitive market which is beneficial for home owners. The introduction of more equity release providers has increased the pressure on financial institutions to provide a wider variety of attractive packages and schemes.

The increased demand and activity in the equity release market has caused a number of different types of schemes to be established. Most equity release schemes can still be divided into one of two categories:

•    Lifetime mortgages: These are designed to provide life-long finance, allowing home owners to leverage against the value of their property without needing to make monthly payments. Instead the interest on the capital for the loan is compounded on to the balance of the loan. This balance is only repaid after the death of the home owner or in the event that they move into a long term care residency. At this point, the property is sold and the proceeds used to pay off the loan.
•    Home reversion plans: This is a more basic form of equity release which allows the home owner to sell all or part of their home to the company. Like other equity release schemes, the home owner retains the right of occupancy until their death or movement into long term care. However, they need not worry about loan interest as they are fully aware of exactly what proportion of their home has been sold.

What is a drawdown lifetime mortgage?
With a great number of providers such as LV=, equity release is even more attractive. Some of the companies now offer draw down lifetime mortgages. These are very similar to standard lifetime mortgages, allowing home owners to borrow funds and compound the interest on to the balance of the loan. However, the primary difference is that rather than receiving a lump sum or income, with a draw down lifetime mortgage, the home owner has a draw down limit. This allows them to call down funds as and when they require them up to their draw down limit. This has a number of advantages, including:

•    Lower interest payments: Unlike standard lifetime mortgages where interest begins to accrue on the lump sum payment immediately, with a draw down lifetime mortgage the interest rate is only charged on the funds which have already been called down. This can save a great deal on interest charges in the long term.
•    Reduced lump sum liability: Although the funds from equity release are tax free, having a lump sum of money sat in your bank or savings account can have a number of financial implications. For example, some people could face losing their qualification for certain benefits or assistance plans which are means tested due to having excess money categorised as an asset.
•    More control: The ability to draw down funds as and when they are required can provide a greater degree of control. Rather than needing to make a decision about whether you should take the maximum equity release possible, you can have the reassurance of having the funds you need for your plans in the short term with a reserve fund which can be called down if needed. This can be extremely helpful to those retired people who find their circumstances have changed and they need extra funds quickly.

If you are interested in equity release but have no immediate need for a large cash lump sum, a draw down lifetime mortgage may represent the best possible solution for your needs. There are a number of established companies offering this type of product and scheme including LV=. Equity release providers will often have a flexible scheme available which offers draw down options, so it is worth taking a little time to explore your options with your equity release adviser. This will enable you to proceed forward, knowing that you can take full advantages of the benefits a draw down scheme has to offer.

What are the Advantages and Disadvantages of the Stonehaven Interest Select Lifetime Mortgage Plan?

Many people considering equity release may have come across the Stonehaven Interest Select Lifetime Mortgage. This represents a plan with enhanced annuities which may seem like a great deal. However, it is important to understand the advantages and disadvantages fully.

The Advantages
The Stonehaven Interest Select Lifetime Mortgage offers a number of great advantages. These include:

•    Increased flexibility: Where conventional equity release products offer the option for an income or enhanced annuities with no monthly repayment and most interest only lifetime mortgages require a monthly payment to cover the interest, the Stonehaven Interest Select offers a greater degree of flexibility. The home owner can choose to make interest payments and can declare how much they would like to repay each month. This can negate the potential disadvantage of having the balance of the loan increasing dramatically. Since the balance of standard equity release schemes are estimated to double every eleven years due to the compound interest, this can be an excellent way to counteract this without being committed to a payment schedule which can become difficult on a fixed income.
•    Reduced early repayment fees: Many equity release schemes have a number of fees and early repayment charges which are applied in the event that the loan is repaid early. This can cause difficulty if your circumstances change and you have the funds to repay the loan early or if you would like to move house. In some cases the fees can add up to one or two percent of the loan balance which can have a significant financial impact on your plans.
•    Self-certified: Unlike many conventional mortgage products which require proof of income, the Stonehaven Interest Select plan allows for the home owner to self-certify their income. This can allow a little more flexibility as Stonehaven conduct no income checks whatsoever during the application process.
•    Attractive Interest Rate: The Interest Select plan offers one of the most attractive interest rates in the marketplace. This particular plan offers the lowest rate in all of the Stonehaven schemes, which encourages home owners to pay the maximum possible amount. The minimum payment is £25 per month and the payments can be made by the home owner or even by their children to protect their potential inheritance.

The Disadvantages
Of course, like any other financial product, there are disadvantages which should be considered. These include:

•    Low loan to value ratio: Possibly because of the attractive interest rate, the Interest Select plan has one of the lowest loan to value ratios on the market. This could be restrictive for those who currently have an existing mortgage which has compromised the level of equity in their home.
•    Low maximum equity release percentage: The maximum percentage of equity release available with this plan is 44%. This is the maximum option depending on the applicant's age, gender and personal circumstances. There is also set criteria of a minimum property value of £70,000 with a minimum loan of £10,000. The standard minimum age of fifty five is also applicable.
•    Minimum monthly payment: Although flexible, some may consider the minimum monthly payment to be a disadvantage. The payment is needed via direct debit and made each month, which could potentially present difficulties for those on a fixed income in circumstances where funds may be especially restricted in one or two months of the year. The home owner would need to plan in advance for leaner months and ensure that they still have the funds needed for the minimum monthly payment.

Considering the options
It is important to consider the advantages and disadvantages of any product. While the Stonehaven plan may seem like an ideal solution, it is important to consider all the other available options. Your equity release adviser will be able to assist you in assessing the feasibility of the options available and whether they would represent a better choice for your specific needs and circumstances. An independent adviser could offer a greater representation of the products and schemes which are available in the marketplace to ensure that the Stonehaven plan is best suited to your needs.

If you are considering equity release but are concerned about the value of your property covering the potential balance of the loan and leaving money to your loved ones, then a flexible lifetime mortgage such as the Stonehaven plan may represent the best solution for enhanced annuities. However, it is important to ensure you have fully researched your options and can proceed confident in your decision.

What are My Interest Only Lifetime Mortgage Options on Reaching Retirement?

With the current UK national debt, economic climate and interest rates, many people who are about to reach retirement are worried about their financial options. Many people are worried about their existing debt and managing on a fixed income once they retire. However, there are a number of equity release options available.

Equity Release Schemes
The increased competition in the equity release industry and increased demand caused in part by the UK national debt and financial climate have allowed for a wide variety of schemes and plans to be developed. These plans can usually be classified as one of the following:

•    Home reversion plans: This is one of the least common equity release schemes which offer home owners the option to sell all or part of their home to the home reversion company while retaining the right of residency. The agreement is planned in advance to allow a lump sum to be released in exchange for ownership of a proportion of the property being transferred. The property only passes to the company upon the death of the applicant or should they move into a long term care facility. This type of plan is best suited to those who are reluctant to enter into a scheme with interest being accrued or would like a greater degree of control over their estate.
•    Lifetime mortgages: This is one of the most popular types of equity release scheme. They are similar to a conventional mortgage with the exception that the balance of the loan is only repaid when the property is sold after the home owner has passed away or taken up residency in a long term facility.

Types of Lifetime Mortgages
There is a wide variety of lifetime mortgage schemes available. These are usually one of three options:

•    Roll up: These lifetime mortgages allow for the interest to be accrued and compounded on to the balance of the loan. This means that there are no monthly repayments but the balance of the loan will significantly increase over time. It is estimated that the balance on a typical roll up lifetime mortgage will double approximately every eleven years.
•    Interest only: This type of lifetime mortgage allows the home owner to make a monthly payment to cover the interest on the loan. This ensures that the balance of the loan remains fixed and allows for a greater degree of control over estate planning. The disadvantage of this type of scheme is that you would need sufficient income to cover the monthly interest payment and some equity release companies would require proof of income. However, there are some schemes which allow a greater flexibility to make a monthly payment to cover all or only part of the interest. This allows for more control but without committing to a full payment every month.
•    Drawdown: This type of lifetime mortgage allows for the home owner to receive a smaller lump sum initially with a draw down limit for further funds should they be required. This can be an excellent way of obtaining financial security but you would only pay interest on the funds which have been released. This can be beneficial for those who don't require a large lump sum initially or are concerned about their qualification for means tested benefits or assistance programs.

Assessing the Options for Your Circumstances
There are a number of advantages and disadvantages associated with all the different types of equity release and lifetime mortgage. However, in order to determine the options which are best suited to your personal circumstances or requirements, you would need to further explore your options. There are a number of online calculator tools which can assess your qualification or you could consult with an independent equity release adviser. They will be able to assess the feasibility of a great number of equity release schemes to determine which is best suited to your requirements.

Many of the calculator programs will be able to take your basic personal information details such as your age and gender, and the details of your property to determine which scheme would potentially suit your circumstances. This will enable you to confirm whether a lifetime mortgage would suit your needs and which type of lifetime mortgage would be the most applicable.

If you are facing retirement and concerned about the economic climate and UK national debt, equity release can present a great way to boost your financial security. As with any financial decision, it is important to assess your options fully to enable you to make an informed decision about proceeding forward with an equity release application.

Can Interest Only Mortgages Survive the Recent Cull Delivered by the FCA and Mortgage Providers?

Many people considering equity release have worried about whether the range of products including interest only mortgages can survive the recent cull from the FCA and the various mortgage providers. Obviously with any mortgage, pros and cons are applicable and should be fully assessed. However, the equity release market is very heavily regulated by the FCA.

Why are equity release schemes heavily regulated?
When equity release schemes were first introduced in the United Kingdom, they were unregulated and developed a dubious reputation. This compromised the integrity of the schemes and many were found to be poorly planned out. This meant that a great number of people were ill advised and suffered financial consequences of taking out an equity release scheme.

However, the industry has evolved a great deal since those early days. In a bid to ensure that consumers are protected the Financial Conduct Authority has classified all equity release schemes as financial products with a high risk factor. This level of risk is due to the long term implications which are attached to equity release. This categorisation of risk means that the FCA insist that all people receive proper advice and guidance before taking out an equity release scheme. Part of this guidance includes a full explanation of the key facts of the specific scheme in addition to any restrictions or limitations being documented. This enables applicants to explore the advantages and disadvantages associated with their chosen scheme, which helps to assure them of their options and the affects which may be experienced by themselves and their beneficiaries.

Will interest only schemes survive in the long term?
Although they are no longer the most popular choice of equity release, there are still a number of interest only schemes which are available in the equity release marketplace. Obviously, they will still fall under the same FCA rules and regulations. However, when assessing mortgage pros and cons, these products can still represent a good option for certain circumstances. While conventional interest only mortgages have received some negative press, in the equity release industry they can allow the home owner a greater control over the balance of their loan. This is because instead of the interest rolling up and compounding on to the balance, the interest charges can be covered by a monthly payment.

In fact, some plans offer a great degree of flexibility with regards to interest payments allowing the home owner to make a full or partial payment to cover the interest and minimise the increases on their balance. With a typical roll up lifetime mortgage balance doubling approximately every eleven years, this option can allow the home owner to take control of their equity release scheme and manage their potential estate for their beneficiaries. Some family members of equity release home owners have actually assisted their relatives in covering the interest charges in order to protect their future inheritance. With this degree of flexibility, it is certain that there will be interest only lifetime mortgages available in the future.

Exploring Other Options
It is important to recognise that interest only lifetime mortgages are just a percentage of the deals and schemes available. If you are considering equity release, it is important to explore the other options which are open to you. This could include:

•    Home reversion plans: This is a type of scheme which is not very commonly used in the equity release market. It allows home owners to sell all or part of their home to the reversion company while retaining the right to live in the property for the remainder of their lifetime.
•    Roll up lifetime mortgages: This is a similar financial product to an interest only lifetime mortgage with the exception that no monthly payments are required. Instead the interest charges are compounded on to the balance of the loan. This can be a good option for those with limited disposable income who are not concerned about leaving a great deal of equity available for their beneficiaries.
•    Draw down lifetime mortgages: These products offer the home owner the option of having a draw down limit on their scheme rather than taking a large initial sum. The funds are available to be called down as and when they are required up to the draw down limit. However, interest is only begun to be charged once the funds have been released, which can allow a great deal of flexibility and financial reassurance without paying interest from day one.

If you are interested in equity release, it is important to assess the scheme or mortgage pros and cons. This will provide all the information that you need to make an informed decision in order to proceed with assurance and confidence that it is the option best suited to your needs.

Does a Buy to Let Interest Only Mortgage Still Need a Repayment Vehicle?

Whether you are interested in purchasing a property to let with a shorthold tenancy agreement or have not fully considered your buy to let options, you are probably aware of the restrictions which are currently being imposed by a great number of lenders. There are a great number of lenders who have now totally withdrawn their interest only mortgage options, while other lenders are imposing a great deal of restrictions on new applications. This could have a huge impact on the buy to let consumer.

Why are lenders clamping down on interest only mortgages?
Interest only mortgages have received a great deal of bad press in the past. In years gone by they were readily accessible and offered as a sound financial arrangement. However, there were a great number of people who took out interest only mortgages in the 1980's and 90's without an adequate repayment vehicle, who are now facing the prospect of attempting to pay back the capital on their loan without losing their home.

Next year, it is anticipated that there will be a number of enhanced affordability checks which will come into force for the lending market. Many lenders appear to be anticipating these changes and are changing their lending policies accordingly. This could potentially impact those planning on buying a property to let it on a shorthold tenancy agreement.

Why people choose interest only mortgages
Interest only mortgages represent a method of financing a property with a lower monthly payment. Since the monthly payment does not include any percentage of capital repayment, it is simply set at a level to cover the interest charges which are accruing on the loan. This can seem like a great idea if you are considering a buy to let arrangement. However, it is a good idea to have a repayment vehicle in place even in these cases. This is because in the past, a great number of people have been hit with a negative equity situation where the property value has dropped below the level of the loan. This can be a very dangerous situation for any mortgage holder but especially in interest only cases. This is because there is no change to the balance of the loan regardless of how much of the term has passed. This can mean that you may find yourself with a rental property which holds a lower value than the mortgage with no means to repay the difference.

Options for older people with interest only mortgages
Many older people who are stuck in this type of quandary are turning to equity release schemes as a way to retain their home and pay off the outstanding mortgage balance. Many equity release companies will allow home owners to release sufficient equity in order to repay their outstanding mortgage and possibly receive an additional sum. However, this option is not possible for properties which were specifically purchased to let out with a shorthold tenancy agreement.

Finding an interest only mortgage
Although a great number of financial institutions have withdrawn their interest only mortgage products, there are still options available. However, in most cases a suitable repayment vehicle would need to be proven or established. Many lenders will no longer consider regular savings into an ISA or potential inheritance sums as these options do not provide sufficient hard evidence that the funds would be available at the end of the mortgage term. Buy to let mortgage providers may offer some flexibility with regards to a repayment vehicle, but most will still encourage some form of vehicle to be in place should the value of the property drop. Although the lenders do tend to appreciate that a buy to let property is usually a medium to long term investment, they also need assurance that you will be financially stable enough to cover the costs in the circumstances of your tenant breaking their shorthold tenancy agreement or the property being left vacant for a period of time. Since most landlords use the rent they receive to cover the interest repayment each month, the lenders will generally require proof that you could manage in case of unforeseen circumstances.

If you are considering purchasing a property to lease out on a shorthold tenancy agreement, an interest only mortgage may seem like the perfect finance solution. However, it is important to reduce the risk of incurring an unpaid debt at the end of the mortgage term by arranging a suitable repayment vehicle. This means that you are more likely to secure an interest only deal. However, you should be prepared for the lender criteria changes which could potentially affect your eligibility.

Should I Choose a Fixed or Tracker Interest Rate on My Equity Release Plan?

When considering equity release, it is understandable to become a little overwhelmed by the sheer choice of options available. Many people are unsure about the type of scheme they should choose, while others are concerned about whether a fixed or tracker interest rate would represent the best option. Equity release mortgage interest rates can be a major factor in choosing a scheme, with some schemes offering very attractive rates through either a fixed or tracker plan. However, in order to determine which option is the best suited to your circumstances, you should have a basic understanding of the differences.

What is the difference between fixed and tracker mortgage interest rates?
The mortgage interest rates set by your equity release company will be either fixed or tracker based. Fixed interest rates are set at a certain level for a set period of time. Whereas tracker interest rates will track the Bank of England base rate and adjust accordingly. There are a number of advantages and disadvantages associated with either type of plan.

•    Fixed equity release mortgage interest rate: The main advantage of this type of scheme is that you know exactly what charges will be applied over the term of the plan. With a roll up lifetime mortgage, you will have comprehensive documentation which would detail the balance changes as the duration of the plan extends. This can give you a very good idea of the amount of equity which would be needed to repay the total balance when you pass away and how much would potentially be left for your beneficiaries. The main disadvantage of this type of plan is that the interest is fixed, regardless of whether the Bank of England base rate goes up or down. If the rate rises, you may consider yourself lucky to have secured such a great deal. However, if the rate drops significantly, you may spend several years feeling aggrieved at paying a far higher rate for an indeterminate period of time.

•    Tracker equity release mortgage rates: The main advantage to this type of scheme is that it fluctuates according to the market and Bank of England base rate. However, this can mean that your interest charges go up as well as down. It can be far more difficult to keep an eye on the balance of your equity release scheme and you are likely to be reliant on annual or bi annual statements from your provider. Many people think that a tracker mortgage interest rate will offer a better deal but since they are usually set at a certain percentage above the Bank of England base rate, they can be a little risky in an uncertain economic climate.

Choosing the best equity release option for you
In order to choose the best possible equity release option for your circumstances, you will need to conduct a little research by accessing expert websites. You should use online tools and calculators to explore the implications of the fixed mortgage interest rates and how it would differ from a tracker interest rate scheme. There are usually differences in the rates charged, therefore you should explore the restrictions and limitations offered with each individual scheme. For example, some schemes have very high early repayment charges which makes switching to another scheme very financially impractical. In cases where the scheme is set to a tracker interest rate, this could be a significant financial gamble.

Usually the choice between fixed or tracker mortgage interest rates is down to personal preference. However, it is worth speaking to your equity release adviser if you are unsure of your options. They can assist you in weighing the advantages and disadvantages of specific schemes to determine which represents the best possible option for you. They will also supply you with financial illustrations so you can determine the long term cost of the equity release scheme regardless of whether it is on a fixed or tracker interest rate. This can enable you to have all the information necessary to make an informed decision when moving forward. They will also take the information you have provided to determine your attitude to risk and advise which type of scheme they feel is best suited to your requirements and circumstances.

If you are interested in equity release, researching the mortgage interest rates and types of schemes available is a good starting point. It is worthwhile making use of the free online tools and calculators to determine if you would like to proceed and speak to a professional and specialist adviser. The calculations offered by these tools can provide a good basis for comparison and ensure that you feel confident that your adviser has found you the best possible deal and you are happy to proceed.

Where Can I Find Information on Halifax Retirement Mortgages

Many people considering equity release find the prospect of Halifax retirement mortgages reassuring. A great number of people are interested in learning more about this range of products. However, you may have difficulty finding information on the most conventional product, the Retirement Home Plan, as it has now been withdrawn.

Why are Halifax retirement mortgages a good bench mark?
Many people are looking for additional information on the Halifax Retirement mortgages such as the Retirement Home Plan, as they are a good bench mark for the products available under equity release. The Retirement Home Plan offered a compromise between a conventional mortgage and a typical equity release scheme. A great number of people have found the Halifax Retirement mortgages reviews extremely helpful to familiarise themselves with the terminology used within the equity release industry.

Is there an alternative to Halifax retirement mortgages?
The equity release marketplace is filled with hundreds of different schemes and plans, with many offering a similar product to the Halifax retirement mortgages such as the Retirement Home Plan. The main reason the Halifax products were so successful was because it offered the home owner the ability to gain control of the balance of their loan by making interest payments each month. This kept the balance of the loan fixed and allowed for the home owner to be completely aware of how much of their home would be needed to repay the loan after they had passed away. However, there are a number of similar lifetime mortgages offered in the equity release market. Some plans offer a greater degree of flexibility, allowing home owners to make a payment each month to cover all or part of the interest charges. These can provide a viable alternative to the withdrawn Halifax products.

Consider All the Alternatives
Equity release is a serious financial decision, therefore it is important to consider all the alternatives. Although a lifetime mortgage similar to the Halifax retirement mortgages may appear attractive, there are advantages and disadvantages associated with this or any other scheme. It is important to consider all of the alternatives in order to receive confirmation that you have chosen the product or plan which is best suited to your circumstances and requirements. It is important to have an awareness of the other types of equity release scheme and be aware of the benefits and drawbacks each has to offer in order to make an informed decision when moving forward.

Generally, equity release schemes can be divided into one of several different types. These include:
•    Interest only lifetime mortgages: This is a range of products which is most similar to the Halifax retirement mortgages. They are similar to a conventional mortgage but generally resemble an interest only mortgage. The home owner makes payments each month to cover all or part of the interest incurred. The balance of the capital for the loan is only due for repayment when the home owner has passed away or moved into long term care. The advantage of this type of plan is that the home owner has a greater degree of control; however, the main disadvantage is that it does require sufficient income to be in place to cover the interest payment each month.
•    Roll up lifetime mortgages: This type of product is similar to the other lifetime mortgages, with one exception. Instead of the interest being paid by the home owner each month, it is rolled up and compounded on to the balance of the loan. This balance is only due for repayment upon the death of the home owner when the property is sold to finance repayment. The advantage of this plan is that it does not affect the disposable income of the applicant. However, the balance of the loan can increase dramatically, doubling approximately every eleven years.
•    Draw down lifetime mortgages: This type of scheme is similar to a roll up lifetime mortgage with the interest compounding on to the balance. However, instead of receiving a large initial lump sum, a draw down facility is created. This allows the home owner to call down funds up to their limit as and when they require them. The main advantage of this plan is that interest is only charged on released funds and there is no need to have a large sum of money sat in a bank or savings account. However, once the funds have been released, interest will still compound onto the balance increasing it dramatically over time.
•    Home reversion plans: This is a relatively uncommon type of equity release which allows the home owner to sell all or part of their home to the company, while retaining residency rights. The advantage of this plan is that there is no interest to consider and the home owner is aware of exactly what proportion of the home has been sold. However, there are greater restrictions associated with home reversion plans including a higher minimum age.

Although the popular Halifax retirement mortgages have been withdrawn, there are still a great number of equity release options available. It is worth taking the time to explore your options fully.

What Are the Lowest Equity Release Interest Rates

For a great number of people considering equity release, the interest rates offered are a good indicator of a great deal. Many people consider it very important to be making savings. Interest rates can vary greatly across the different plans and schemes, therefore, it is important to be aware of all your options.

Using Equity Release Calculators
Equity release calculators are free online tools offered on the websites of equity release companies and brokers. They allow the home owner to gain a tailored quotation of the potential equity release schemes which would be available to them. These tools are easy to use and require the home owner to supply basic information such as their age, gender and property details including the current market value of the property and the balance of any current mortgage or finance secured on the property. The calculators are pre-programmed to incorporate this information into the formula for determining qualification and will respond with details of the plans which are suited to the home owner’s particular circumstances. This can produce significant time savings. Interest rates, maximum equity release sums and other plan details are displayed in order to allow the home owner to make comparisons.

The calculators can produce accurate results. However, there are several things to consider when using this type of tool. These include:
•    They are only as accurate as your information: The calculators are purely mathematical and have no capacity to check the accuracy of your information. Therefore, if you under or overestimate details such as the property value or balance of your existing mortgage, the figures produced will be very inaccurate. It is worth taking the time to research your information fully before using a calculator, including researching the sale prices of similar properties in your area and asking your current lender for an up to date balance.
•    They are tied to a particular range of products: The calculators are programmed with the details of the particular plans associated with the website. This will mean that if you are using an equity release provider’s calculator, it will only display the results from that particular provider’s product range. The best way to gain a greater insight into the market place is to use a number of different calculators, especially those linked to independent advisers. This will give you access to a greater degree of schemes and increase the likelihood of finding the best possible savings, interest rates and deals.

Consult a Professional and Experienced Equity Release Adviser
Many people think that they can seek out the best possible deal and interest rate by themselves. However, it is worth considering that equity release advisers can have access to exclusive products and schemes which may be the best possible option for you. It is important to consult with a professional and experienced adviser. However, it is a good idea to take the results from your equity release calculator searches to provide a basis for comparison. This will ensure that you can have confidence that your adviser has found you the best possible deal.

Remember: the Interest Rate is Not the Only Factor!
It is important to remember when you are looking for a good deal or savings, interest rates should not be the only factor you consider. For some people looking for the maximum amount of equity release possible, they may be able to release a higher amount with some plans but incur a higher interest rate. Alternatively, it is important to assess the charges and fees associated with the scheme. Some plans may look extremely attractive with a great rate, but you may discover restrictions and limitations including very high early repayment charges. This could be extremely costly should your circumstances change in the future.

Other plans may offer more attractive terms, such as draw down lifetime mortgages, which allow home owners to call down funds as and when they require them up to their draw down limit. This can be beneficial as the interest is only applied to funds which have been released. While the interest rate may not be as attractive, there is a potential that you may incur less charges in the long term, if you have no immediate need for a large lump sum. It is therefore important to check all the advantages and disadvantages of the particular scheme, not just the interest rate before proceeding. Your equity release adviser will be able to assist you with the key facts of specific schemes which will highlight the pros and cons, ensuring you have all the information needed to make an informed choice when moving forward.

If you are interested in equity release, it is important to research all your options in order to evaluate the best deal and savings. Interest rates are an important consideration, but they should not be the only deciding factor. It is important to explore all the advantages and disadvantages associated with the specific scheme before making a decision about moving forward.

How Can Equity Release Mortgages Help with Debt Management Plans

As a great number of people are approaching retirement, they are facing having a reduced income while still having debts which are lingering. Many retired people have found their disposable income compromised by credit card balances, overdrafts or bank loans. Many conventional avenues of finance such as secured loans can become closed to retired people because of their age and restricted income, which can make restructuring their debt difficult. It is for this reason that many retired people are considering equity release as viable debt management solutions.

What is an equity release mortgage?
Equity release schemes and mortgages have been specifically designed for the over fifty five age group. They allow home owners to leverage against the value of their home to gain a lump cash sum or additional income. These funds can be used for any purpose including as debt management solutions. This can allow the home owner to pay off any outstanding debts relieving the financial pressure on their reduced fixed income.

The benefit of equity release as debt management solutions
The main benefit of equity release as debt management solutions is that most plans require no monthly payment. The balance of the loan attracts interest but the interest charges are usually compounded on to the balance of the loan. This can dramatically affect the balance, allowing it to double approximately every eleven years. However, the total balance of the loan is not due for repayment until after the home owner has passed away or moved into a facility for long term care. At this point, the property is sold and the proceeds used to pay off the loan. If there are any funds remaining, they are then distributed to the beneficiaries of the estate in the usual manner.

These types of debt management solutions can allow the home owner to adjust to having a fixed income without worrying about meeting financial commitments to service their debt. Any funds remaining after paying off the debt can be used for supplementing their lifestyle, making purchases or financially assisting family members.

The disadvantage of this type of arrangement
Most people consider the main disadvantage of this type of plan is the impact it can have on the home owner’s potential estate. Obviously allowing interest to accrue and compound can significantly increase the balance of the loan. Therefore after a great number of years, there may not be any remaining equity left for the beneficiaries. However, the equity release industry is heavily regulated to ensure that no equity release customer leaves a property debt to their estate. This provides great reassurance for those worried about leaving debts or unpaid bills to their relatives. They can use the equity tied up in their home to enjoy a more comfortable retirement.

Obviously the disadvantages should be carefully considered and weighed against the advantages before deciding to use equity release as your debt management solutions. Equity release advisers are trained to assist home owners in exploring other potential options and will actively encourage home owners to discuss their plans with their families and beneficiaries before proceeding forward. There are some plans which offer the option of making monthly interest payments rather than allowing the charges to compound. This can give a greater amount of control over the balance of the loan to the home owner, but it would require sufficient disposable income each month or a beneficiary willing to cover the costs and protect their inheritance.

Many people consider equity release as their debt management solutions because of the reassurance that no monthly payment is needed and they retain the right to live in their home for the remainder of their lifetime. This can allow home owners to experience a greater degree of financial freedom, released from the worry of mounting debts which they would struggle to repay on their fixed income. In this current economic climate and with a rising debt level in the UK, it is certainly considered a valid method of debt management. However, equity release is a serious decision as it is a long term commitment with long term financial consequences. It is worth taking the time to fully explore all your options before making a commitment to proceed forward with an application. Experienced and professional equity release advisers will be able to assist you in exploring these options and locating the best possible deal suited to your circumstances and requirements. This will enable you to move forward confident that equity release is the best of the debt management solutions available to you.

Why Do Equity Release Companies Value Houses Lower than they are Really Worth?

Many people considering equity release are unaware of the application procedure and become a little concerned by the property valuation and other aspects of the process. Many people assume that they will be able to release the full value of their property with equity release and argue that the valuations are lower than the actual real worth. This can cause heated arguments from the home owner, but by understanding the equity release process, you may feel a little more reassured.

The factors which influence how much equity can be released
There are a number of factors which influence what percentage of equity can be released. This is because equity release schemes are designed to be lifelong financial products. The equity release company needs to ensure that there is sufficient equity in the property to cover the initial lump sum and the accrued interest for the entirety of your estimated lifespan. The equity release companies are heavily regulated and cannot allow equity release to leave a debt to a person's estate. Therefore, the company will consider a number of factors to determine your estimated lifespan. These factors include:

•    Your Age: Generally, the younger the applicant, the smaller the percentage of equity release available. In cases of joint application, the calculations will be based on the age of the youngest party.
•    Your Gender: Since women statistically live longer than men, they tend to be offered a smaller percentage of equity release.
•    Your Health Status: Some companies will take your medical health into consideration when offering an equity release sum. They allow a higher percentage of equity release to those people with an impaired lifespan due to a health condition or illness.

Obviously, the value of your property is an essential factor in influencing how much equity can be released. There are certain loan to value ratios which must be complied with to ensure that the scheme is feasible. This is why the property valuation is an essential component of the equity release application process.

Factors which affect the property valuation
There are a number of factors which can affect the property valuation. This is because the equity release company will need to assess the resale potential of your home. Your home will need to be sold after you pass away to pay off the final balance of the loan. Therefore, the equity release company must have confidence that the value of your property can cover this sum. Many equity release companies place restrictions on certain property types for example, leasehold flats, only allowing a percentage of the property valuation to be considered. This is because a leasehold flat may be more difficult to resell and there are other factors which will influence the desirability of the property.

The equity release company may also consider flood risk, tree root damage and other factors which could compromise the structural value of the property. Additionally, most equity release schemes require the property to be in a good and well maintained condition to ensure the equity release company's investment.

What to do if you feel you have received a low property valuation
If you are in the process of applying for equity release, for many people the property valuation is a key component. If your property valuation has come back lower than you anticipated, there are several options.

•    Firstly, you could obtain a second valuation. This is not necessarily the most cost effective solution as you will need to pay two property valuation fees. You should also be aware that the surveyor has been instructed on your behalf and is not in the employ of the equity release company. Unless there is significant evidence that the value has been underestimated, for example information about a similar property recently selling for a higher value, this is not necessarily a good course of action.
•    The most effective course of action is to speak to your equity release adviser. They will be able to help you to go through the figures and calculations again. It may be that a lower valuation could impact on the feasibility of your specific equity release schemes, but the adviser would be able to explore other options with you to find one which is better suited to your needs.

If you are contemplating equity release but are concerned about your property valuation, it is worth speaking to an experienced professional equity release adviser. They will be able to check if your specific property would be subject to certain lending restrictions and assure you of the independence of the surveyor performing your property valuation. This can enable you to move forward, confident in the offer and the available amounts for equity release.

Do I Have to Sell My Property to Take Out an Equity Release Plan

A great many people are unsure of how they can leverage the equity which is locked in their home. In the past many retired people were forced to sell their property and down size to a smaller and less expensive home in order to gain access to these funds. Many people worry about equity release schemes and whether they would need to sell their home in order to take out a scheme or plan. While there is a great deal of information and advice on selling your property, there is less information about equity release, so here is a basic guide to equity release.

What is an equity release scheme?
Equity release schemes have been around for many years. While many people will provide advice on selling your property to release the equity which is tied up in the home, equity release plans allow you to access these funds without needing to sell the home.

The process is fairly simple, the equity release company collates information including your age, gender and market value of your property to assess the amount of equity available and the estimated duration of the scheme. Equity release schemes have been designed to be lifetime products, so the company will use national statistics to estimate your potential lifespan including your age, gender and state of health. The minimum age for equity release is fifty five and in cases of joint applications, the age of the youngest party is the one used for the calculations.

Generally, you will find equity release schemes will allow you to release thirty to fifty percent of the equity in your home. This equity is determined by taking the balance of any existing mortgage or secured loan from the market value of the home. The amount of equity release is determined by your potential lifespan, with younger people being offered a smaller percentage of equity release.

Why can I not release the full amount of equity?
The main reason for this is that unlike many other financial products, equity release schemes generally require no form of monthly payment. Instead the interest incurred by the loan is compounded on to the balance. The equity release company needs to ensure that there is sufficient equity in the home to cover the initial loan and the amount of interest which will be compounded over the duration of the scheme. This balance can increase dramatically over the years and it will double approximately every eleven years, hence why you cannot generally release more than fifty percent of the equity in the home.

The balance of the loan is only due to be repaid after the home owner has passed away or taken up permanent residence in a care facility. At this stage, the home will be sold and the proceeds used to settle the balance of the loan, with any remaining funds distributed to the beneficiaries of the estate in the normal manner.

So, I don’t need to sell my home?
With equity release, there is no need to sell your home. You would retain the right to live in the property for the remainder of your lifetime. However, it is a serious financial commitment and it is worth exploring your other options fully before committing to a plan. It can be a good idea to seek advice on selling your property to determine whether downsizing would present a better option for you financially. Many equity release schemes have severe early repayment penalties which are applied should you decided to sell the property at a later date. However, if downsizing is a possibility, there are some plans which offer the flexibility to port the plan to another property should you decided to move home.

Taking the next step
It is important to explore all your options and research the possible equity release solutions. There are a number of online tools including calculators which can provide tailored illustrations of schemes which could potentially suit your circumstances. However, these tools cannot replace the expert guidance of professional and experienced equity release advisers. These advisers will be able to help you explore the alternative options and assist you in locating the deal which is best suited to your needs.

If you are interested in equity release and have explored some of your other options including taking advice on selling your property, it is worth taking some time to research the available options open to you. The online tools and equity release adviser guidance can provide invaluable assistance and help you gather all the information needed to make an informed decision as to whether equity release is the best possible solution for your needs. This will then allow you to proceed confident in your decision.

Life Mortgages Equity Release Home Reversion Market Needed

For many people worried about static house prices during their retirement, home reversion plans can seem like a great solution for their financial needs. It is a less common element of equity release which has received very little attention in the past. However, the impact of leading providers such as New Life Mortgages introducing new plans should reignite the home reversion market. However, in order to understand this potential impact, it is important to have an understanding of the market place.

Types of Equity Release
Most forms of equity release can be divided into one of two groups: Lifetime mortgages or home reversion.

Lifetime mortgages are loans secured on the property. They have a number of different formats including:

•    Interest only: These loans allow the home owner to make payments each month to cover the full or partial cost of the interest. The balance of the loan remains stable and is only due for repayment after the death of the home owner.
•    Roll up: These mortgages require no monthly repayment and instead the interest is accrued and compounded to the balance of the mortgage. This can dramatically affect the balance as it is likely to double approximately every eleven years.
•    Draw down: This type of scheme allows for no monthly payments in a similar way to a roll up mortgage. However, instead of the home owner receiving a cash lump sum or additional income, the scheme allows for a draw down facility to be created. This means that the home owner can draw down funds up to that limit as and when they have need of them. The benefit of this type of plan is that the interest is only charged on the monies which have been drawn down.

Home reversion plans are a different form of equity release. They allow the home owner to sell all or part of their home to the reversion company. This means that the home owner retains the right to reside in the property as their primary residence without needing to worry about loans or interest rates.

The Benefits of Home Reversion
In times of static house prices, home reversion plans can be an attractive equity release solution. Since the home owner can sell all or part of their property, they are completely aware of exactly what percentage of their home is remaining for their beneficiaries. It is a more attractive form of equity release for those who are concerned about interest charges accruing and the balance of the equity release absorbing all the potential equity within their home.

With a home reversion plan, the home owner can sell all of their home and receive the cash lump sum tax free. This can be an excellent way to finance effective inheritance planning and assist family members financially before they pass away.
Additionally, should the static house prices begin to shift and prices drop further, the client would not be affected in any way, since they no longer own the property.

The Drawbacks of Home Reversion
As with any type of financial product, there are drawbacks to home reversion. The first is that should the static house prices begin to shift upwards, the client would not benefit from the increase in property value, since they no longer own all of the property. However, unless the person has sold all of their property, they would still gain some benefit.

Home reversion plans also tend to have far more restrictive qualification criteria. The value of the property is still a major consideration, but they tend to have higher minimum age requirements, with a minimum age of sixty five being typical with most schemes.

Another major drawback of home reversion is that it can be extremely costly to buy back your property should your circumstances change and you wish to reverse the transaction. There are a number of fees and charges which are applied to buying back, which would mean that you could end up paying significantly more than you received.

Assessing Whether Home Reversion is Right for You
In order to ascertain whether home reversion is the right option for your specific circumstances, you will need to fully explore all the options. There are a number of experienced equity release advisers who can offer all forms of equity release, including home reversion plans. They can assist you in assessing the advantages and disadvantages as they apply to your situation to determine whether it is the best possible option for your needs.

If you are worried about how static house prices will affect your financial situation during retirement, a home reversion plan may be the solution for you. With established equity release companies such as New Life Mortgages showcasing the benefits of home reversion with their new plans, it is likely that more schemes will be on offer, increasing the chances of finding a truly great deal.

What are the Key Retirement Solutions to a Successful Retirement

As the UK experiences an ageing population, a great many people are approaching retirement. The prospect of an extended period of time on a fixed income is a little daunting for some and a great number of people are considering what the key retirement solutions are in order to fully enjoy their retirement years.

Plan Ahead
There are a number of key retirement solutions which are essential for obtaining a successful and comfortable retirement. However, many people only begin to consider their retirement when it is too late to make effective and significant plans. It is important to plan ahead for your retirement finances and the sooner you begin to make preparation plans and put them into action, the greater degree of financial security you can accomplish. Financial planning is one of the most important aspects of achieving a successful retirement. Even implementing plans to save a small amount each month can accumulate into a significant sum especially in a scheme which compounds the interest.

It is important to be aware of the details of your employment pension and what contributions have been made by your employer. You should also investigate what your entitlement would be from any of these pensions and decide whether it would be a sufficient amount for your retirement plans. Many schemes allow the person to take an initial lump sum with a smaller monthly pension in subsequent months. This can allow financing a large purchase such as a retirement property.
However, even with careful financial planning for their retirement, some people are finding that quantitative easing has affected their potential pension. In these scenarios you may wish to explore alternative options such as equity release. Equity release allows home owners over the age of fifty five to leverage the equity in their home for a cash lump sum or additional monthly income. The balance of the loan is only due to be repaid when the home owner has ceased to use the property as their primary residence. For example, if they have passed away, moved into a care facility or moved into their holiday home permanently.

Consider Your Goals
Retirement should be a relaxed and happy period in a person’s life, but in order to ensure that you have a successful retirement, you will need to consider your retirement goals. Some people would be content spending their days tending to their garden, while others wish to travel and see the world. Obviously, these plans have radically different financial requirements. In order to determine what would be a successful retirement for you, you will need to consider what your retirement goals are and what funds would be needed to meet your goals. You can then plan out your key retirement solutions to meet these requirements.

Many pensions and equity release schemes offer a large initial lump sum with the potential for a monthly income later. If your plans do not require an immediate injection of cash, you may be better considering options which allow a larger monthly income to create more financial flexibility.

Alternatively, if you have goals which would require a large amount of money initially, you may be best opting for options which maximise the amount offered initially. However, if you are unsure about your goals, you will be unable to determine which financing method is better suited to your needs.

Plan for Other Eventualities
It is important to consider the possibility of unforeseen circumstances or other eventualities in your retirement plans. While no one wishes for ill health, there is a greater risk of medical issues affecting your quality of life in later years. It can be a good idea to plan out contingencies for situations where you may require long term care or assistance. Unfortunately, in today’s world very few people have family who would be willing and able to care for them in the event that they suffer from ill health in old age. Therefore, it is important to plan for these possibilities. This will create some assurance that should the worst case scenario come into play, you will avoid undue financial stress or pressure to accommodate it.

If you are worried about planning your retirement or need assistance working on your key retirement solutions, you should consult with a professional adviser. Experienced equity release advisers can assist you in exploring the possibility of equity release if you are over the age of fifty five and worried that your pension plans will not be sufficient for your retirement. This can provide a greater degree of flexibility and allow you to enjoy your later years in comfort.

How Can the Retirement Mortgages and Equity Release Schemes Help the Baby Boomer Generation

For the generation of baby boomers, the prospect of retirement can be a little daunting. This generation of people who were born at the end of the Second World War, may have planned for their retirement well, but the economic climate may have put a dent in their plans.

Why baby boomers may struggle in retirement
The main reason that the generation of baby boomers may struggle in their retirement is down to the ageing population in the UK. Many people are living far longer which means that the period in which they are retired is even longer. While this may seem like a great thing, for those who are struggling on a restricted income, this can mean they are placed under further financial strain. Added to this is the huge increase in the cost of living in the UK. Many people have felt frustrated by the price increases of basic utilities and other costs, but for someone with a fixed income, there is no way to gain a pay rise in their pension. For those who are limited to a state pension, they are at the mercy of budget changes and the effects of quantitative easing.

Even those people who have adequately planned for their retirement and paid off the balance of their mortgage while they were still working, may find that their pension income no longer stretches as far as they anticipated. This can be very disappointing for those who have sacrificed during their working lifetime to ensure that they have a comfortable retirement only to find that they may struggle to make ends meet.

How equity release and retirement mortgages could help the baby boomers
Equity release and retirement mortgages allow home owners to leverage the equity which is locked in their home. While in the past, many retired people were forced to down size to a smaller property in order to gain access to this equity, equity release allows the home owner to obtain a loan secured on the property, while retaining the right to live in the home until such time as they move into a care facility or pass away.

Many retired home owners can have considerable fund locked in their property but be cash poor. A great number of equity release schemes allow for home owners to receive a tax free lump sum or additional monthly income without needing to pay a monthly repayment. The interest accrued on the loan is compounded on the loan balance, which becomes due for repayment when the property is sold after the home owner has passed away.

Retirement mortgages are a slightly different type of financial solution. These still provide a loan to gain access to the equity locked in the home. However, these types of product will generally require a monthly payment to cover all or part of the interest charges and maintain the level of the loan balance.

The advantages and disadvantages of these schemes
As with any type of finance, there are advantages and disadvantages associated with these products. These vary according to the specific terms of the product, but there are some general factors which should be considered.

Equity release has a number of advantages including that there are a number of different schemes and plans which can suit myriad circumstances. There are roll up lifetime mortgages which allow the interest to be compounded on the loan and require no monthly payments. Other types of equity release include home reversion plans, which allow the home owner to sell all or part of their home to the company, while retaining residency rights for the remainder of their lifetime.

The disadvantages of this type of arrangement are that it can have a significant impact on the funds available from the eventual sale of the home to pass on to beneficiaries. For example, the balance of a roll up lifetime mortgage is estimated to double approximately every eleven years. This can mean that the balance increases dramatically. However, there is regulation protection to ensure that regardless of the duration of the equity release scheme or property market, no equity release plan will allow an estate to inherit a property debt to be passed on to the beneficiaries.

The advantage of retirement mortgages is that the balance of the loan is more in the control of the home owner. This can allow a greater degree of inheritance planning. However, they do usually require some form of monthly payment to cover the interest, which can be difficult for those with a restricted disposable income.

If you are one of the generation of baby boomers, and are worried about your retirement, equity release or retirement mortgages may represent a viable finance method. It is worth taking the time to research your options and speaking to an experienced equity release adviser.

Benefits of Using an Online Lifetime Mortgage Calculator

When considering equity release, many people become a little overwhelmed by the different types of schemes and plans available. There is the choice of an interest only lifetime mortgage, home reversion plans, drawdown mortgages to name but a few. However, each individual scheme or plan will have slightly different qualification criteria, restrictions, limitations and equity release amounts. This can make it very difficult to compare the different schemes and assess which is best suited to your needs. However, there are a number of online equity release calculators which can assist you.

Understanding the Different Schemes
When using an equity release calculator, you will be supplied with a number of options which suit your circumstances and needs. However, it is important to understand the differences between the different types of schemes and plans. Most equity release products can be sorted into one of four categories:

Interest Only Lifetime Mortgage
This is similar to a conventional interest only mortgage, but with an interest only lifetime mortgage, there is no monthly repayment. The interest accrues and is compounded on to the balance on an annual basis. The loan for the release sum does not require repayment until the property is sold upon your death or you moving into a care facility for the long term.

Drawdown Lifetime Mortgage
This is very similar to an interest only lifetime mortgage. The principle of repayment is exactly the same. However, the primary difference is in how you receive the equity release sum. Unlike the interest only lifetime mortgage, where you may receive a lump sum, monthly income or both, with a drawdown lifetime mortgage, you are given a drawdown facility. This has a pre-set limit but it enables you to draw down sums of money as and when you require them. This is beneficial since you only begin to pay interest on the money as you draw it down. It can provide some financial security in the event of unforeseen circumstances and can be beneficial for those people who would lose their eligibility for state benefits and assistance if they had a large sum of money sat in their bank account.

Enhanced Plans
These plans are designed to provide enhanced packages for those with a history of poor health or even a terminal illness. They utilise a lifetime mortgage or other scheme in principle, but they offer a greater amount of equity release based on the compromised life expectancy of the applicant.

Home Reversion Plans
These plans offer the applicant the option to sell all or part of their home to the home reversion company. They still retain the right to occupy the property for the remainder of their lifetime, but they receive a lump sum and know exactly what proportion of the value of their home has been used.

The Benefits of Using an Equity Release Calculator
The equity release calculator will assess your circumstances to determine whether you meet the criteria for the different products and schemes. This has a number of benefits, including:

•    A quick response to confirm whether you would be eligible for equity release. This is affected by the age of the parties and amount of equity available in the home. Some people are unaware that equity release is based on the age of the youngest applicant in joint applications. This would mean that although one party may be fifty-eight and eligible if their spouse is only fifty-four equity release would not yet be possible.
•    A calculation of the amount of equity available in your property. This is based on the current market value of your property less any outstanding existing mortgage.
•    The provision of an equity release maximum sum, which can enable you to determine if equity release is a feasible option for you.
•    The details of schemes which would appear best suited to your circumstances. This can enable you to compare and contrast the different interest rates and terms imposed by the different interest only lifetime mortgage schemes.
•    Examples of other plans. Some of the more in-depth calculators will offer details on other plans, such as enhanced packages or home reversion schemes which may represent a better deal for you.
•    Different results based on different criteria. This can enable home owners to explore whether they would be better to postpone their application. For example, for someone aged fifty-nine, they may obtain a better deal if they wait until they have reached their sixtieth birthday.

If you are interested in an interest only lifetime mortgage or any other form of equity release, it is important to fully assess your options. An equity release calculator can provide an excellent first step in this manner, but it should not replace the professional advice of a specialist equity release adviser.

Knowing the True Value of Equity Release in Your House

There is some confusion about equity release schemes, with many people believing that the benefits are available to any home owner over the age of fifty-five. Unfortunately, this is not the case as there are some eligibility criteria which must be met in order to apply for an equity release scheme. This can be very confusing as there are several different factors which need to meet the criteria, so many people use an equity release calculator tool, which can not only determine your eligibility but also the potential equity release which would be available to you.

Confirming the Required Criteria
The equity release calculator tool will ask for a number of personal and financial details in order to confirm that you meet the required criteria, before providing any kind of values for equity release. It will check your age, since the applicant must be over fifty-five. However, a number of people making joint applications may find that they fail to meet these criteria, since the application will consider the age of the younger of the two applicants. If you wish to pursue equity release, you will need to wait until both home owners are over the age of fifty-five. Age can also be an eliminating factor for home reversion plans, which will generally have a minimum age requirement of sixty-five. The calculator will also determine if there is sufficient equity in the property by deducting the current mortgage from the value of the home. There is a specific loan to value formula which must be met and large existing mortgages may mean that your application fails to meet these criteria.

Confirming the True Value of Your Home
Generally, the equity release calculator tool will also ask a number of questions regarding your actual property. In order to qualify for equity release, your home must be in good condition and of standard construction. This provides assurance to the equity release lender that your home is a good form of security for the loan. However, these are not the only criteria to assess the true value of your home. All applications must be accompanied by a property survey, in order to determine whether your home is at risk of flooding or has some other pertinent structural issues.

When entering the estimated value of your property into the equity release calculator tool, it is a good idea to be as accurate as possible. It is worth taking the time to research similar properties in your area which have recently sold. There are a number of online websites which offer property price information based on a collation of sales data. This will help to gauge the current property market in your area and provide a current market value.

The Importance of Accuracy
In order to know the true value of equity release in your property, it is important to ensure that all the information you enter into the equity release calculator tool is as accurate as possible. Even the most sophisticated of calculator tools work on a mathematical approach rather than a speculative one. The calculator cannot judge whether you have over or under estimated the value of your property. It simply takes the figure you have entered and applies it into the pre-programmed mathematical formula.

If you are considering equity release, it is worth obtaining up to date and accurate information in order to determine a true value for your equity release. Ask your current mortgage lender for an up to date mortgage balance figure; compare sold properties in the area which are similar to yours and ensure that you answer the calculator questions as precisely as humanly possible. Only by ensuring accuracy can you have confidence in the figures which are supplied by the calculator.

An equity release calculator tool can be extremely useful to determine the true value of equity release available to you. It can be a quick method of determining whether you meet the basic qualification criteria and if your home has sufficient equity to make equity release possible. The calculator tools use the same mathematical formula to determine the maximum equity release available as the equity release lenders and companies, so it can be an ideal way to assist you in making the decision about going forward. However, if you are considering equity release, it is important to realise that even the most sophisticated of online tools will not replace the advice and guidance offered by a specialist broker or adviser. They will be able to provide more in-depth information about products and schemes which may not be available online and can help you to be assured that you are getting the best possible deal which is suited to your specific circumstances.

How to Calculate Compound Interest

When considering equity release, a great many people become confused by the concept of compound interest being applied to the loan. This is because unlike a conventional repayment mortgage, equity release schemes will usually require no monthly repayment of the capital or interest. The interest is added to the balance of the loan and is compounded annually. This can appear to be very expensive and many people question why the balance of the loan increases so quickly, with the balance doubling approximately every eleven years. However there are a number of tools available to calculate compound interest and demonstrate the financial implications of the different plans and schemes.

How to Calculate Compound Interest
Many people feel confident in their mathematical skills to calculate interest, but when it comes time to calculate compound interest, it can get a little confusing. The interest calculations on the first year of equity release are very straight forward as there has been no interest compounded. However, on the anniversary of the plan, the interest for the previous year will be added to the balance. Interest will now be charged on the higher balance, which is then added to the balance on the next anniversary. There is a formula used in order to calculate compound interest:

A=p (1+(r/100)n. In this formula A is the accumulated amount, p is the principle amount, r is the rate and n is the period of time or years.

However, the longer a loan has been in place, the more complex and confusing the calculation can be. This is why many people use online tools which can calculate compound interest much more quickly for them.

The Benefits of Online Calculators
There are a great number of free online calculators for compound interest. They can provide information which can help home owners decide if it is financially viable for them to pursue an equity release scheme or other forms of loan in which the interest is compounded. There are a number of benefits of online calculators including:

•    Fast, accurate results
•    Allows the exploration of different interest rates in order to assess the viability of different products and schemes
•    Provides figures which will assist home owners to judge the impact equity release will have on their beneficiaries in the future.

Why Knowing the Compound Interest Effects is Important
At first glance, the figures involved in equity release can seem very expensive. After all, if the balance of your loan is likely to double every eleven or twelve years, unless the value of your property increases with a stronger property market, you may end up with no equity left to pass on to your beneficiaries when you have died. However, by understanding how to calculate compound interest, you can ensure that you are seeing a fuller picture of the equity release scheme. The figures will show that you are making no repayments each month to lower the balance and that the interest is simply being added to the balance of the loan each year, attracting further interest.

Knowing how compound interest works can ensure that you get the best possible deal in equity release. Many people are concerned about getting the maximum possible lump sum. However, it is often beneficial to compare interest rates and opt for a scheme which may offer slightly less of a lump sum but with a much more attractive interest rate. This will mean that in the longer term you will pay far less interest on the loan and could potentially still have equity left to leave to your beneficiaries.

Your specialist adviser or broker will provide you with key facts illustrations and documents which details the advantages and disadvantages of your chosen scheme, scheme details and a breakdown of how the interest will compound and affect the balance of the loan. However, this is presented after a number of adviser appointments, when they have searched the market for the best possible deal. It can be worthwhile investigating the implications of the interest rate and how it is compounded before you commit to see an adviser. Knowing this information can assure you of whether you would like to proceed, or whether you would prefer to research your other options before moving forward.

If you are considering an equity release scheme, it is important to familiarise yourself with how to calculate compound interest or locate a free online tool to do the calculations for you. This will help to present an accurate picture of the potential financial implications of the equity release scheme and help you to make an informed choice as to whether it is feasible to proceed further to an application.

Handling the Legal Affairs of an Equity Release Application

If a pensioner has made the decision to proceed with an equity release scheme, he or she will need to have an equity release solicitor to represent him and to handle all of their legal affairs. Equity release solicitors ensure you are represented in the equity release process. Most equity release providers are members of SHIP or the Safe Home Income Plans. This organization is the governing body where equity release is concerned.

All members of SHIP must follow its rules and regulations. Where equity release solicitors are concerned, the requirements of SHIP dictate that the legal affairs of equity release can only be handled by a solicitor. SHIP also dictates that one solicitor is not allowed to handle the legal affairs of both the client and the equity release providers. This means that two solicitors are needed to complete any equity release process.

The responsibilities of an equity release solicitor are many. He is responsible for making sure the equity release provider is a valid lender and that all money lending regulations are adhered to. He is also responsible for confirming that the client is complus mentus which means that he is fully aware of the terms, conditions, and effects of the contract he is entering into.

Equity release solicitors are also responsible for checking that there are no irregularities on the deeds of the property. All communication between the client and the equity release provider must be handled by the equity release solicitor, who liaises with the provider’s solicitor to answer any requests.

In order to complete the equity release process and to request the funds from the provider, the client’s equity release solicitor must complete and sign a SHIP certificate which is a confirmation that the client understands the implications of the chosen equity release scheme. This SHIP certificate is needed for the equity release process to be completed.

When choosing an equity release solicitor, the client should check if he is qualified to handle the equity release case since that equity release is a specialized area where the legal paperwork cannot be compared to standard legal paperwork. The client must hire a solicitor whose competence and understanding will provide him with the explanation that he needs to fully understand the equity release process.

Comparing different equity release solicitors is helpful. You can feel confident you obtained the proper person for your equity release situation. You have a couple of options for equity release: home reversion and lifetime mortgage. Both have their own advantages and disadvantages, which your solicitor can explain to you.

Most solicitors will be well-versed in both processes; however, this is another area you will want to compare. Since you might have questions about the application and the process it undergoes even after reading this short guide, it does not hurt to test your solicitor's knowledge of both options.

You might find by asking about both options your solicitor will suggest whether home reversion or lifetime mortgage is the better choice. Each option open to you has different advantages that might make one better than the other for your situation.

Home reversion is not a mortgage, although it does require a solicitor to help you close the deal. With reversion schemes you sell a part of your home, which is all the more reason to have a solicitor on hand. You want to make certain this complicated process is in your favour. There is also the lifetime tenancy agreement that must be signed.

Lifetime mortgages require interest rate payments; however, you retain ownership of your house. For some this process can be better since the house is still yours and you can decide when you move out and sell it.

It will all start with the application process. The provider wants to know your situation including your health and any outstanding mortgage you might have on the home. Through the application process, your situation is clear on paper including the amount you need to cover your living expenses or improve your home. The pre-approval process ensures you know what you are able to afford in an equity release.

While the process is different than traditional mortgages, you still want to take out the equity you need rather than all that might be available. Equity release solicitors working on your behalf can help you outline what is necessary and then set up the agreement. The decision is always yours regarding what you decide to do regarding equity release schemes.

How Long Does a Typical Equity Release Application Take

The time that it takes for an equity release plan to come into fruition usually depends on whether you are taking a home reversion plan or lifetime mortgage. A home reversion plan application usually takes about 8 to 12 weeks. Meanwhile, a lifetime mortgage is shorter as it only takes about 6 to 8 weeks. The period it takes for an equity release application process to complete will also depend on the solicitor and how efficient they are.

The Equity Release Application Process can be explained as follows:
The first & most important aspect of equity release schemes is to establish whether it is the right action to take. Therefore, seek equity release advice in the first instance and consider all your options before pursuing an application.
Once the decision has been made to apply for an equity release, you will then need to complete an application form with your qualified lifetime mortgage adviser. Equity release companies will not accept an application that does not have a financial adviser who has signed to say they have provided you with advice.

At this stage any fees that need to be paid should be paid. These fees usually include a valuation fee. However, ensure your adviser has shopped around as many equity release companies these days have free valuations. Do not part with any money for your adviser at this stage. Most equity release advisers will only invoice you once the case has completed.

Once the application form is finished and submitted, the provider of the equity release will send a surveyor to your property in order to conduct a basic valuation. The surveyor will look at the condition & structural standing of the property and any possible repairs that would need to be done. He will establish a valuation figure based on other house prices in the area and what they sold for and what the current market value is to secure a relatively quick sale.

To save time, the legal process should be started at the same time as the application has been submitted. The solicitor that works for the client will gather information on the property; that is, if there has been any property improvements that may have had planning permission. Also, they will check into the title and if there are any restrictions, such as agricultural ties etc. The solicitors for the client and lender must be separate and are there to make sure that all the legal papers are completed and to assist in the equity release transaction.

The solicitors acting on the client’s behalf will also need to repay any mortgage or secured loans on the property, which is usually achieved through the money from the release of equity.

For any application to be completed, the lender needs to carry out certain checks to meet the money laundering and consumer credit requirements. The lender will then need proof of ID that includes your passport, driving licence or government backed evidence that could be your annual state pension. If these are for some reason not available the lender then requires proof of who you are through a birth or marriage certificate and a bank statement or utility bill for proof of residence.

Once title checks and valuations are done the solicitor will set a completion date for the client. Once the application has been completed you are able to receive the tax free cash. You then have the option of the funds being sent by telegraphic transfer which means the funds are instantly in your account, albeit they come with a TT fee of approximately £40. Or, you can receive the tried & trusted route of bankers draft which once paid into your account will take 3 working days for it to clear. The choice is yours!

It can be a long equity release application process, but as long as you have everything in order and have a good solicitor the application will be quicker. Anytime you undergo a real estate transaction involving a mortgage or pay out, it is best to have all the paperwork for the house, most recent valuation, and any improvement documents already compiled. If you can have everything you will need in one file the day of completion for your paperwork will go smoothly.

You can start gathering what you need for the equity release application process as you search for the correct lifetime mortgage or home reversion scheme. Things can move quicker with your solicitor and equity release agent if you are prepared for the first meeting.

Hodge Shared Growth Option Revealed

Are you in the need for a certain sum of money now? Do you find that what you are earning from your pension is less than what you expected? Are you having trouble with covering your daily expenses? If you have answered yes to at least one question from the questions presented up above, you may be interested in a programme that is beneficial for you like the Hodge Shared Growth Option.

If you are at least 65 years old and own a home, you may be the right candidate for an Equity Release Scheme perfectly fitted to your needs. Hodge Shared Growth Option is probably the only Equity Release plan on the market nowadays that requires no application fee.

Looking into Equity Release has never been easier. The providers that offer these products have created a strong reputation from offering wonderful services along with reliable products, particularly because its employees have had experience in this field of finance for over four decades. All you have to do is sit back in the comfort of your own home and investigate a little further about Hodge equity release schemes.

The factors you should take into consideration on engaging into this specific programme are the following:

•     You have to own a flat or a house that is well built and solid
•     You are the joint or sole owner of a property and you are usually its resident
•     You have an age situated between 65 and 85.
•     Depending on the value of your estate, you may exchange on average between 30 and 90 percent of the property if you wish to, but this detail depends on your criteria and the selection of the best scheme that suits your needs.

If you think of yourself as a good candidate, all you have to do is a little research on the lenders that provide these kinds of plans. The obvious and definitely most simple method is accessing Hodge\\\'s website. There you can find trustworthy pieces of advice. The company has advisers that are online to answer any questions that may cross your mind. Be aware that matters of this nature are pretty serious, so be sure to check with an Independent Financial Adviser who specializes in this field of Equity Release before making a decision.

There are plenty of different plans out there that might fit your needs. You may also come across different products with different providers. The Hodge Shared Growth Option allows you to gain access to funds for your retirement years as your needs change. This is a great benefit compared to plans that are less flexible.

Home reversion is an equity release plan. Under this plan you have to sell a part of your home and then you obtain a lifetime tenancy agreement. You can live in the home rent free until you pass on or decide to move to a long term care location. At this time you will need to sell the rest of your home to the plan provider, who then sells the home for the full value thus gaining their funds in the process. This type of plan ensures an inheritance for your family, where lifetime mortgages do not.

An example of a lifetime mortgage is the interest only plan. This type of lifetime mortgage will require a monthly payment for the interest accrued. You do not pay the principle balance (the lump sum you took out initially) back until you move out or expire. You lessen the debt owed, but there may be a need to sell your home to repay the loan. You also have to have funds to make the interest payments throughout your retirement. If you obtain the mortgage at 65 and live till 90, this is 25 years of interest paid on the lump sum.

These are just a few of the points about lifetime mortgages to consider as you also look into the Hodge Shared Growth Option. You definitely want to make certain you can afford the plan you choose or have a way to pay it off later on. If you want to save your home for the family you may need a couple of financial products like life insurance to cover the mortgage payment. Speak with your family once you have made a decision or are in the process of making a decision to ensure they understand the financial obligations. Don't forget, financial procedures such as the one afore-mentioned are destined to people that need it. Be sure to check this product as quickly as you can!

How Does the Stonehaven Interest Only Lifetime Mortgage Differ from Equity Release?







Lifetime mortgages allow a person to receive a tax free cash lump sum from the equity in their home. The older the person is and the longer they wait to receive the cash lump sum, the more money they can receive eventually. When it comes to selecting the best lifetime mortgage, it can be a challenge for someone who doesn't know anything about lifetime mortgages. Stonehaven Interest Select plan or Stonehaven interest only lifetime mortgage plan is the sole interest-only product currently available on a lifetime mortgage basis for people over the age of 55 in England & Wales. This market has shrunk since the withdrawal of the Halifax Retirement Home Plan in Aug 2011. Read More...


The Differences Between Lifetime Mortgage and Drawdown Lifetime Mortgages

Roll-Up and Drawdown are both types of Lifetime Mortgages and are the most popular equity release plans in the UK. In a Drawdown lifetime mortgage, you receive money from a lender based on your property value, and the interest is added on the main loan instead of paying separately. This means that you pay compounded interest, and you can withdraw a reasonable lump sum on signing the papers and then make subsequent withdrawals, as you need them. When the property finally sells, the amount is used to pay both the loan and compounded interest.

Therefore, the main difference between the two Lifetime Mortgages is that a Roll-Up plan allows you to take a lump sum when you sign up for the deal, while the Drawdown Mortgage allows you to take a smaller lump sum and withdraw small amounts when necessary which can be accessed monthly.

The amount of money that you can borrow with a lifetime mortgage depends on your age, which must be above 55, depends on your health condition, and the value of the home. Essentially, a 70-year-old person will release more equity compared to a 55 year old, while someone with a long term medical condition will release more compared to one who is fit and healthy.

It is important to note that interest increases over time because it is compounded, though the compounding effects are more severe in a Roll-Up Mortgage compared to a Drawdown Mortgage. The main reason why this happens is that you only pay interest when you withdraw money in a Drawdown Mortgage, making it more attractive.

The other factor that one must consider is the rate of inflation since interest rates can escalate to unaffordable amounts in case of severe inflation. Sometimes property values can drop; however, they tend to increase over time in the long term. Therefore, when considering either Lifetime Mortgage, consider natural home inflation over time.

You have more options than just roll-up and drawdown mortgages. There is an enhanced mortgage scheme that is dependent upon your health. This is the type of mortgage that pays a larger sum to you if you have an illness that decreases your life expectancy. You can gain more funds to take care of your health needs or enjoy holidays you might not be able to afford otherwise. There are plenty of reasons to consider this mortgage if you will have a limited time left. Like your other options there is some concern about repayment.

Repayment of the lifetime mortgage is usually through the sale of the house. However, if you have a spouse or companion they may not wish to sell the house. With an enhanced mortgage plan this can create some issues of accruing interest and a larger than life mortgage. The repayment and interest are just two things to consider when you look into this time of equity release. If you are worried about interest consider the fourth option available to you.

Interest only mortgages pay for the time that you hold the mortgage, meaning that if you passed on after six months of taking up the plan, then you would pay interest for that period only. Moreover, they are more flexible than Home Reversion plans especially if you want to borrow a smaller amount of money. With the interest only loan you can keep the principle amount small or continue to borrow on your equity; however, you make payments to your account for the interest so it does not compound but gets paid off. The key to this type of mortgage is having the income to support making interest payments during the month.

If you lack sufficient funds to make payments it will be hard to qualify for the interest only lifetime mortgage. There is a fifth option that is not a lifetime equity release loan. Home reversion is not a loan on your property with interest. Actually it requires the sale of a part of your home. You can sell the entire home too. The key to home reversion is the lifetime tenancy agreement that allows you to remain in the house rent free.

You do not have to repay any interest or principle with a home reversion, but you pretty much guarantee the house will not remain in your family once you are gone. You also guarantee an inheritance is left by setting aside a portion of the house to be sold after your death or move to a long term care facility. Lifetime mortgage or home reversion can be ideal, but make sure you pick the plan that works for you.

The dangers that are Associated with a Drawdown Lifetime Mortgage

Lifetime mortgages vary making it possible for a variety of consumers to find a financial product that can help in their retirement. The drawdown lifetime mortgage is one option made available to you and it differs from the standard lifetime mortgage or home reversion choices you have.

With a drawdown lifetime mortgage you are still able to release money that is tax free just like a standard lifetime mortgage. The principles with a drawdown mortgage are the same in that you still own your home and you are not expected to make any regular payments. The main difference is that you can access the money that you want to release more flexibly.

This means that you do not get your money as one large sum but you can withdraw it as and when you need it. Also, you will only pay the interest on the money that has been withdrawn and not the entire amount. When your home is sold, the loan and the interest on the money that you withdrew are paid back.

Drawdown lifetime mortgage advantages:
1) This option is available at 55 years old; home reversion policies are not.
2) Money is tax free, available to you to spend as you need it, when you need it, and how you might need to use it.
3) You pay interest on the funds you withdraw and use, not on the whole amount available.
4) Payments are due when you move out to a care facility or pass.
5) There is a chance to protect your family’s inheritance.
6) The FCA (formerly FSA) regulates all lifetime mortgages including the drawdown option.

Disadvantages of Drawdown:
1) Your mortgage can increase over time due to the compounding interest, which can eliminate any inheritance you wanted to leave your family.
2) You may also need to release more equity in your home, which is dependent on the home values and inflation changes.
3) If you undergo a second application to release more equity there is no guarantee it will be accepted.

The above are some notable disadvantages to the drawdown lifetime mortgages. Your mortgage size may increase over time thus you might need to apply to release more equity than you initially thought and it cannot be guaranteed that the application will be accepted. This affects your inheritance that you had intended to leave since it could be reduced and you are not able to release as much equity with this scheme as you could with a reversion plan.

Any financial product you elect to try for your retirement that involves a lifetime equity release is going to have advantages and disadvantages. It is important to decide what will work best for you. For instance, you can request a negative equity clause be added to your contract. This clause can save you and your beneficiaries from paying above the home value at the time it is sold just to pay off the loan and interest that has accrued.

For example, if your home value is £250,000 and you took out £150,000 with an interest rate of 6% for 20 years and your home value reduced to £200,000 you may not have any inheritance left during a sale. However, you would not owe any more than the selling price of the house. It protects against creating a larger problem after someone dies regarding debts.

If the provider you get a drawdown lifetime mortgage from is not regulated by the FCA it can have consequences you may not see right away, because you may not receive a no negative equity guarantee. This means if the sale of your property cannot pay the loan it becomes the problem of the lender and not the homeowner. Without this guarantee that the FCA regulates, you or family members may have to pay off this debt. This can then take away your families inheritance and add an extra financial burden to them. Make sure that the company is FCA regulated to avoid this.

You always want to make certain you look at companies regulated in the UK. You should also consult your family members to ensure they understand the financial package and can help you make a decision. Lastly, speak with an adviser to go over all the negative and positive points of drawdown lifetime mortgage products. A financial adviser will explain the details of lifetime mortgages, outline the different types and speak with you about home reversion as a different option. You can always make a decision on your own after you have varying opinions.

Fresh Competition From Hodge Lifetime in the Interest Only Lifetime Mortgage

Stonehaven was once the only contender in the interest only lifetime mortgage market with their range of Interest Select Plans and Roll-Up Equity Release schemes. Now, with the proliferation of other companies offering alternative equity release plans, Stonehaven is finding themselves in competition with the Interest Choice Plan from More2Life and the Hodge Lifetime Flexible Drawdown Plan.

The Hodge Lifetime Flexible Drawdown Plan is available in England, Wales and mainland Scotland, and was created with an eye on flexibility. The scheme provides you the opportunity to take one initial tax free sum with additional access to funds within a cash reserve account. These additional funds can be withdrawn in as little a sum as £1000, with no additional administrative fees.

The advantage provided by this plan is that interest will only be charged when the amounts are actually withdrawn. The fixed interest rate for this plan is set at 6.09% monthly, for life. Additionally, it allows for repayment up to 10% of the original capital borrowed without any penalties, at an amount agreeable to you and having no monthly commitment.

At the end of twelve months you can issue payments to Hodge Lifetime towards the repayment of the Flexible Drawdown Plans at an amount which remains at your discretion and up to the maximum limits provided. The Hodge Lifetime Flexible Drawdown Plan is a choice alternative for people who are looking to repay interest or capital and stay in control of how much is paid and when.

Stonehaven’s Interest Select Plan provided the most competitive interest only lifetime mortgage of its kind. It provided a limited sense of flexibility to the individual, with accessibility to minimum monthly payments towards interests. They also provide a comparably lower interest rate starting at 5.99%, varying on the amount borrowed against the property value. This scheme has a maximum APR of 6.40%.

However, with the advent of new competitors in the market Stonehaven’s Plans may not be as lucrative or attractive as they once were. The Hodge Lifetime Flexible Drawdown Plan in particular offers clients greater flexibility and access to funds.

Perhaps Stonehaven’s increase in competition is leading them to believe that they don’t have the market all wrapped up as they would have originally thought. This in turn could, and will lead to increased competition in the interest only lifetime mortgage which can only be a good thing for retirees looking to release equity and lower the interest charged.

Any time you seek out an interest only mortgage you will have to make interest payments. The amount of the payment as stated above is flexible based on the companies offering such plans. You want to find the deal that is best for you to reduce the final payment. The principle balance will always remain; however, if you can pay off the interest each month it will lower your obligation at death or when you move to a long term care facility.

Interest only plans are not the only option and you do have to qualify for the income situation. You have to prove you have disposal income that can be spent on the interest rate accrued each month. You may be working and not in retirement, which can help you pay the interest off. However, when you retire will you have enough funds to continue making payments? This is just one of the considerations you will need to make when it comes to plans like the Hodge Lifetime Flexible Drawdown Plan.

New competitors in the market certainly means there is more you can compare and shop for in the interest only lifetime mortgage market. As you look around from Stonehaven plans to Hodge plans, keep in mind that home reversion, drawdown, interest only, roll-up and enhanced equity release schemes exist. At least with a drawdown plan you are protected against paying interest during each month unless you wish to.

The downside is the compounding interest could take away from the inheritance you want to leave behind. Speak with your family regarding drawdown mortgages and your other lifetime mortgage options. Let them know what you are considering, the expense and the potential loss of home it could result in. Typically the home is sold to cover the mortgage and interest thus a family home may be sold.

Financial advisers can help you understand the advantages and disadvantages from a financial perspective. They can compare Hodge lifetime flexible drawdown plan choices with Stonehaven interest only mortgages with an eye towards finances rather than an emotional exploration.

Companies Offering Attractive Equity Release Products

Recently, major banks have started to withdraw their equity release programmes for lifetime mortgages. Though this has not affected existing customers, people over the age of 65 who are looking to release equity from their property will no longer be able to turn to Halifax or Prudential for this kind of product. Instead, they will need to look at Stonehaven Interest Only Lifetime Mortgage plans and others on the market.

Fortunately, there are other established companies on the market which offer similar products to consumers. The Stonehaven Interest Only Lifetime Mortgage is one such product which can provide eligible consumers the equity release options they are looking for. Not only newcomers can utilize this scheme but also existing equity release owners can switch to this plan for a fee, which can researched here.

Equity release is an excellent way for those who have already paid off the mortgage on their property to recover some of the value of that asset to put to use somewhere else. It acts like a mortgage, but rather than paying off the debt, the customer continues to pay the interest until the asset is passed onward.

The idea is that when the asset changes hands, the value of the debt is then recovered. If the home is sold, then this is a great time to recover the equity. If it is passed on to the next generation, then a more traditional mortgage can be raised to finance the debt.

Equity release is an excellent way for people who have retired to ensure they maintain a good lifestyle. While many major banks have departed from this product, there are companies who have established excellent products who are happy to provide a great service.

Stonehaven interest only lifetime mortgage is one of those products from a great company available to you. You should be aware that equity release products do not work the same from all companies and there are different products to fit different situations.

The interest only lifetime mortgage is a way to guarantee some inheritance is left for your family after you pass on or need long term care. There reason for the guarantee is that you pay monthly interest. The principle balance is not repaid until death or a move to a new place; however, the interest is not building up sucking away the equity you try to leave for your family.

For example if you have a home valued at £250,000 and you take 44% of the equity out, you have the other 56% of the home with equity in it. You pay the interest so there is nothing adding to the 44% you took out. When the home is sold your family gets the 54% equity left in the home minus any fees that may be outstanding. Since you paid interest Stonehaven has gained money from the equity release throughout the life of the loan.

You may have a situation in which you cannot pay interest. For individuals without income, but someone who wishes to protect their home other lifetime mortgages can be taken out. You will want to take a lower sum and consider the drawdown option. Drawdown lifetime mortgages allow you to take only what you need to use and pay the interest and balance back after death or with the sale of the home. Unless the market changes reducing the value of your home there is equity left for an inheritance.

Home reversion does not keep the home, but it does not require a repayment or any interest build up. You actually sell a part of the home. For many this is disconcerting because they want a chance to keep the home for their family. On the other hand if you have no family or you wish to leave cash instead, then selling your home without any debt left at the end of your life can be the best option.

Before deciding on Stonehaven interest-only lifetime mortgage, search around for the different products. While it is harder and harder to find certain flexible plans and others have been removed from the market, you can still find something that will work for your lifestyle.

Seek advice from Stonehaven and an independent resource. Also speak with your family about the Stonehaven interest only lifetime mortgage to see if they agree with your decision. You may find your family is willing to help you enjoy your retirement and is able to help with that. They may also enjoy the idea of an equity release that can be paid back with a regular mortgage on the property allowing them to keep the home. You won’t know until you ask.

Can the Man From the Pru Offer Equity Release to the Over 60s

The difficulty of retirement is that money simply does not go as far as it used to. When you were working and saving money for your retirement you could not have foreseen the economic downturn that has occurred or for that matter how unbelievably high the cost of living is. If you have retired or are in retirement age and are feeling the pinch then there is another path available to you. Prudential lifetime mortgage plans provide you with extra funds to live on in your retirement, as long as you own your home.

Equity release is known as a scheme, but don’t let the word throw you. It is becoming a valuable and worthwhile consideration when it comes to planning your retirement. The purpose of equity release is to help you make your retirement simple and as care free as possible.

Equity release is a scheme which allows you to raise cash from your current property. There are two kinds of equity release schemes. The first is home reversion. The second is a Prudential lifetime mortgage scheme.

In either scheme what happens is that you raise cash against your property either all at once in a lump sum or you could choose to receive it as a regular monthly income. Through this scheme you, and your spouse or partner, will retain the right to live at the property until both of you pass away or move out. Or alternatively if you or your partner already own an Equity Release Scheme and wish to switch schemes we recommend using a switch plans calculator.

These are not easy things to consider. But if you are planning your retirement and you are of retirement age, over 60 for example, this is a good option to consider. You should look at all options and the variations in requirements before deciding on one particular plan. The Prudential lifetime mortgage is set up for those 60 or over; however, there are other companies willing to offer a plan for those 55 and older.

It takes some research and understanding of the market to make a good decision. Ignoring other companies and potential schemes because you like Prudential or it is a news release telling you about their product alone does not help you make the right decision about your retirement and the inheritance you leave behind.

Lifetime Mortgage

A lifetime mortgage is a loan with interest and a principle balance to be paid back. It is paid upon your death or when you relocate to a care facility. It is typically repaid by selling your home; however, there are options where your beneficiary can get a regular mortgage or pay off the mortgage with money they have saving the home from sale.

You can generally obtain 20% to 44% of your home equity in a lifetime mortgage. It is again dependent on the provider of this scheme. Prudential requires you to be 60 at least and the younger you are the less you can obtain in your home equity. You can always refinance later with a new plan if your home increases in value or to get more equity out of the home if there is a percentage left that would not go over the value or rules of the company.


According to EquityReleaseNorthernIreland.com, the Prudential Lifetime Mortgage is a standard plan. It is not an interest-only plan; however, if you need an interest-only plan you can ask if they have a lifetime mortgage available where you pay interest each month until you move or expire.

You may also find that Prudential is willing to offer one of the newer drawdown schemes in which you take a small lump sum and then smaller amounts as needed until the account is empty or you no longer need funds.

As you can see there are a variety of options available to you and your lifestyle in retirement. The key is to choose the path that best fits your needs. This may require you speaking with a Prudential adviser and an independent adviser.

You also want to look at home reversion

•   In this scheme you sell a part of your home for tax-free, interest-free cash. Since you sold a part of the home, you do not have a debt.
•   The rest of the home is sold when you die or move to a facility.
•   You also have to be 65 years of age to qualify.

Obviously there are plenty of choices out there to consider. As you speak with a representative about Prudential Lifetime Mortgage choices think about what your family would want for you. They may be willing to help out and that can keep your mortgage lower.

Choosing Your Equity Release Mortgage

Choosing your equity release mortgage could be one of the toughest decisions. There are many channels and methods that can help a prospective equity release customer to buy an appropriate equity release scheme to secure their post retired life. Equity release gives an option to people over the age of 55 to release cash from the equity held in their home. The best part behind buying an equity release is that you don't lose your right to live in your home as long as you are alive.

Equity is defined as the home value minus any outstanding loan. If you own 100% of your home then you have 100% equity which is the value your home is appraised at. The appraisal can differ from company to company, but usually there is an average value agreed on based on similar homes in your area.

The Internet is one of the most popular ways that has made our lives easier with helpful financial sites such as LifetimeMortgageAdvice.co.uk. Choosing an equity scheme by analysing the features and risks associated with it online can help people but everyone might not be technology friendly. Most of the prospective equity release buyers tend to have a face to face discussion with an equity release broker to understand the implications of their buying decision on the rest of their life.

The generation coming into retirement now has been around for computers and the Internet; however, financial deals are always considered better face to face. You can always speak with an adviser about an equity release mortgage. You can do this face to face, but it is always helpful to come armed with information from online or an independent adviser.

Since there is no single equity release scheme that fits all, it gets more difficult for people to choose an equity release that can fulfil all their requirements. Moreover, once you have bought an equity release scheme, it won't be easy to switch over from one scheme to another as there is a substantial cost associated with buying an equity release. One of the most popular methods is to ask an equity release broker for their professional advice.

Equity release brokers are the experts on the subject of equity release mortgage so they are in a better position to understand your requirements and then apply their expert knowledge to pick out the best equity release scheme that suits your situation. An equity release scheme that may be best for someone might not be necessarily best for you too.

Equity release brokers are free to a certain point and therefore, they can suggest to you some of the best options available from the wide variety of equity release products available in the market. Even paying a reasonable fee against their professional consulting services is a good option as it can help you buy an equity release that is worth the investment.

Many advisers will have a free initial consultation and then they will charge you a fixed fee or an agreed upon fee. To save yourself some of this fee, get as much information as you can from online. Have your children help you with the Internet. In doing this your children or grandchildren understand there is a financial situation and they can help you make a good decision on the equity release mortgage option.

Since you have four plans under lifetime equity release mortgage and home reversion to choose from, there are going to be quite a few things to consider. Some of these points are below:

•    Lifetime mortgages are available to those 55 years or older.
•    Lifetime mortgages include drawdown, roll-up, enhanced, and interest-only.

Enhanced is for someone with an illness that also has a shorter life expectancy where the lending amount is much higher than regular payouts. Interest-only is the only option where you pay a monthly interest payment. All other lifetime mortgages require not payment until death or move to a long term care location. You do accrue interest during that time though instead of paying it off.

•    Drawdown allows you to obtain a small lump sum and then smaller payments throughout your retirement.
•    Home reversion is available for 65 years or older. It is also a sale of part or all of your home where no mortgage or interest needs to be repaid.

With these different options equity release mortgage or home reversion may help you live a better retirement. You are also armed with information to get the best deal you can from any of the providers available to you.

Are More Lenders Offering Interest Only Lifetime Mortgages?

If you are wondering if interest only lifetime mortgages and lenders are on the increase, the answer to this question is a resounding yes! When Halifax recently withdrew their retirement home plan mortgage, it left only one provider in the market offering the same - Stonehaven and their Interest Select plans.

Not anymore though. Due to the void left by the Halifax Retirement Home Plan, lenders such as more2life and Hodge lifetime have now come up with similar interest only lifetime mortgages in an effort to fill up the gap left in the market. Halifax was one of the two main lenders offering the interest only lifetime mortgage home loan option to retiree homeowners.

Under this scheme, homeowners aged above 60 could borrow up to 75% of their property value and only repay the lump sum when the property sells. It was a great alternative to the conventional roll up plan and helped homeowners save thousands of pounds in interest, which is why it was very attractive. Being a niche scheme in the market, it had left a huge void that was crying out to be filled by an equally competitive product.

More2life has recently launched an equity release plan that specifically aims at dealing with the apparent time bomb for retirees aged above 65 who desire interest only lifetime mortgages on retirement. The plan allows customers to choose how much they would like to pay in interest and within what timeframe. Retirees can choose not to pay the whole amount of interest charged by more2life, and can even opt to a roll-over equity release plan at a future date with a fixed interest rate of 6.08%. The plan begins at 20% for those aged 60 and up to 45% for those aged 85 and over. It is healthy to have competition in the industry for both consumers and providers.

Hodge lifetime has also launched an equity release product as they continue to earn a reputation for their innovative products. The latest product launched, allows an individual to take a lump sum at a fixed interest rate for the entire term. Any one aged above 60 and who has a property with a minimum value of £100,000 can join the scheme, and make an initial withdrawal of £20,000. This plan is available in mainland Scotland, Wales, and England.

Moreover, it allows a flexible unique repayment plan of 10% of the initial loan annually without any penalty. They have also set up two different plans, which are repayment when you are not moving house and repayment when you are moving house. Early repayment will attract different penalties, though. Overall, it is a great plan if you desire to repay the interest and want to control when you can pay it.

Interest only equity release plans are not the only option open to you. There are a range of lifetime mortgages each with different benefits and drawbacks. It is due diligence to look at these other plans and make a commitment to one after speaking with your family and a financial adviser.

Besides interest only mortgages you have enhanced and drawdown. The enhanced lifetime mortgage is for a person with a shorter life expectancy due to an illness. This option can usually be available at age 55. The drawdown lifetime mortgage enables you to take money out when you need it without penalty or further fees. The major difference between these two options and the interest only is that no payment is made until the end of your life or you decide to move into a care facility.

You are not liable for any interest accrued until the end. For some this makes it easier to access money they need right now rather than trying to make an interest payment that would detract from their monthly income for daily living.

Interest only equity release schemes have their benefits. It is up to you to decide whether these benefits will work for your income situation. You also have different choices like the Hodge plan where you can chose a flexible repayment plan without penalties attached. Consider what is best for you and know that you have a choice even though one may have been removed from the market like with Halifax and their retirement account options.

So the equity release market has moved on since the withdrawal of the Halifax Retirement Home Plan with a new breed of flexible interest only lifetime mortgages. Who would have thought this just a bit ago!

How Do Retirement Mortgage Lenders Calculate How Much You Can Borrow?

Retirement mortgages such as the Stonehaven Interest Select or even the new more2life Interest Choice plan are interest only lifetime mortgages specifically designed for pensioners. Whether it is interest only mortgage or roll up equity release scheme, the fact is that there is a definite shortage of retirement mortgages in the market, even as the need for them is on the rise. There are however, some products in the market that could suit pensioners depending on their circumstances. Let us look at how retirement mortgage lenders calculate how much you can borrow.
 
Retirement mortgages, where only interest is the repayment element, can be categorised into three divisions incorporating interest only lifetime mortgages and residential interest only mortgages. Each format has its own calculation formula as to how much can be raised:

1.   Interest Only Retirement Mortgages such as the Stonehaven equity release schemes are designed with pensioners in mind. As such they consider specific factors different from standard residential mortgages. Factors such as age, property value and health all play a prominent role in ascertaining the terms of these retirement mortgages.

For example the basis for calculating the maximum release on a Stonehaven Interest Select is determined by the loan-to-value aligned to the age of the youngest applicant. Each individual age provides a percentage. This percentage is then applied to the property valuation, resulting in a maximum loan availability for the retiree. The decision then is whether this amount is sufficient for one’s needs or how much of this is the client wishing to borrow to meet their requirements.





2.   Interest Only Retirement Mortgages such as the New Life 65+ retirement mortgage provide the second calculation method. To calculate how much mortgage funds can be borrowed is based on income multiples and affordability. These vary from lender to lender, and are multiples of either single or joint incomes. The income must be regular and guaranteed.

In case you are still employed or self-employed, income will consist of a basic salary plus any bonuses, allowances etc and the total income must be guaranteed by your employer. Multiples can vary widely among lenders, and all lenders have slightly different terms of calculating income multiples, so it is worth shopping around if you are interested in getting the maximum borrowing amount.





3.   Another common method for calculating the borrowing amount is the affordability calculator. This method takes into account income as well as expenditures, including household and any other regular expenses. As opposed to considering income alone, this method aims to assess whether the applicant can actually afford to sustain the mortgage.

Additionally, when it comes to retirement mortgages your credit history can also influence the amount you can borrow. The New life mortgage 65+ mortgage or Leeds Retirement mortgages are all reliant on good credit histories to enable a successful decision in principle and subsequent application. This is quite the contrary to the lifetime mortgage based schemes with Stonehaven or more2life who will accept a degree of poor credit such as small CCJ’s, defaults and previously missed monthly mortgage payments.

As you assess the different calculation methods for interest only lifetime mortgages consider the other plans available to you. The interest only option is just one of the lifetime mortgage choices out there. Others do not require you to repay the interest over your lifetime and will accrue interest until you sell the house to repay the loan. Roll-up, drawdown, and enhanced lifetime mortgages work well for individuals in retirement and without a steady income. The compounding interest is not always ideal, which is why there has been a push towards interest only loans.

Before you decide on a plan with or without interest payments, it is best to speak with your family. Your family may find value in your home and wish to save it at all costs. While the interest only mortgage option for pensioners does not demand a sale to repay the principle balance at death or your move into a care facility your family may have to sell it anyway.
Market changes could create a situation where your other financial accounts and life insurance do not pay for the outstanding mortgage. This is just one reason to speak with your family.

It is also always advisable to seek professional advice about interest only lifetime mortgages in order to find the best retirement mortgage to suit you, and to understand how much you will be able to borrow. Companies such as Equity Release Supermarket have advisers that can advise on retirement mortgages from the whole of the market. If in doubt, give them a call on 0800 678 5159 today or email - Mark@equityreleasesupermarket.co.uk. Read More...


Why are Mortgage Lenders Still Risk Averse?

Having a certain age may be difficult, especially nowadays, when the economical situation in the world is becoming trickier. If you believe you are rapidly approaching your pension plan and you will have trouble with your daily expenses, you may need to do a little research into refinancing and equity release mortgage plans.

Most people are having trouble from a financial point of view, which is why the number of persons affected by adverse credit is on the rise. Considering an equity release mortgage may be the solution for them, particularly because having a bad situation like this and being known for it may lead to difficulties in getting some front money. Prepayment is complicated maybe because your negative credit can affect you in the long term. Companies that are dealing with this sort of scheme have a certain level of cautiousness that can affect you and make you believe you may not be eligible for any kind of plan.

However, if you are willing to take the matter into your own hands and if you are able to do a little research especially using online media, you may be able to discover that there are some businesses that specialize in offering only the best services on the market of mortgages.

There are some conditions to applying for a program of this nature. You have to be outside bankruptcy, have an age of 55 and be the owner of a property estimated to at least £75,000. The greatest advantage this plan presents is that there are no monthly payments; therefore, it is impossible to collect deficits. If you are interested in applying, the first thing you have to do is contact the Equity Release Council. This program is destined to be at your service, by providing useful information about the lenders that are willing to offer you a satisfactory mortgaging plan.

Several companies provide equity release mortgage plans. One company may offer a stricter qualification scheme than another. There are certainly banks that are more risk averse than others. It is a matter of their liquidity and outstanding balances. To understand this point you have to understand the equity release schemes.

Providers of these schemes offer their product as a means of making money. No financial institution is going to offer you free cash. Rather they are going to wait for it because there is a benefit in it for them. If you take out a loan at 80 with a life expectancy of 85, the provider recoups their money in five years, with interest. All they had to do was wait for you to move out of your home or expire. It sounds cold when you look at it from the provider perspective, but this is the reality.

There is no reason to offer you money unless they have a hope of getting it back. The length of time they have to wait is assessed and interest is added at a favourable rate to you so that you want to go with this type of plan.

Most mortgages have the interest built into the loan and payments made during your life. Equity release plans in the lifetime mortgage scheme do not require monthly payments unless you decide on the interest only lifetime mortgage. You pay the interest so it does not compound. With all other plans the interest adds up during the life of the loan so there is a large payment due at the end of your equity release mortgage.

You do not have to be 55 to take out this type of loan. You can be older, but you cannot be younger than 55. It is typically better if you wait until true retirement age when you have a better idea of your life expectancy and what your pension is going to be.

Unless you have a severe illness, you want to wait until you are getting on in years. If you have an illness that lowers your life expectancy then there is the enhanced option, which offers a large lump sum to help you during those last few years.

There may still be some hope for those that have been seriously affected by the economic crisis currently influencing most countries in the world. All you have to do is take things a little further and get some relevant information about equity release mortgage plans. Calling a consultant and finding out about your best options is a decision you have to make now, if you are truly interested in applying to a money management plan of this sort.

How Stonehaven Helps You to Fund the Education of Your Children

The Stonehaven Interest Select Plan is a great alternative to the now deceased Halifax Retirement Home Plan mortgage. This Stonehaven interest only lifetime mortgage plan is a great alternative for parents who are struggling to keep their children in college or university. With this plan, parents are able to obtain a loan from Stonehaven using their property as collateral.

With the Stonehaven interest only lifetime mortgage, parents receive an alternative form of capital that allows them to be able to assist their children who are studying to obtain their degrees. When parents sign up for the Stonehaven Interest Select Plan, they are releasing equity from their property. The money that they receive from the Interest Select Plan is tax-free and can therefore be used to meet different goals.

The great thing about the Interest Select Plan is that parents are still allowed to remain in their property. They do not need to hand over their property to Stonehaven and retain 100% ownership. This creates a unique opportunity for many parents in that apart from helping their children with their education, parents can also use the money they receive from the Interest Select Plan to purchase a second and smaller property while they rent their initial property. This allows them to generate yet another source of income that they can use to help fund the education of their children.

It is very important for parents to have sufficient sources of income when applying for Stonehaven Interest Select Plan because this plan requires them to make monthly repayments of the interest. The Interest Select Plan has been made especially for parents who are conscious about their children’s inheritance. Because the interest is repaid on a monthly basis, the initial loan amount always remains constant.

It does not change, which means that in the end parents will be able to repay the initial loan amount and leave a reasonable inheritance for their children. Additional benefits would be that hopefully the house price may have risen in the meantime, thus creating an increasing amount of equity within the property as the Stonehaven Interest Select mortgage balance remains static.

There are qualifications you need to meet in order to obtain a lifetime mortgage whether it is the interest only plan or one of your other options. They are the following:

•    Be at least 55 years of age
•    Own your property with no outstanding mortgages
•    Have good credit history

Interest only lifetime mortgages have one more requirement before you can take out this type of plan - you need to have disposable income. This means you have income to make the interest payments each month. If you are still working or have enough pension to cover your daily costs, household expenses, and other incidentals then the interest only option might work for you.

You do not want to take out a lifetime mortgage with interest payments if you do not have extra cash. It would make your life later on difficult. You would have used your equity for your children’s education, but have nothing to live on. While it is a nice idea to pay for your children’s education, you do want to be careful about your pension and home equity so that you do not burden your children later.

Your family may also want to keep the home you are in, thus speaking with your family about your decision to release equity is important. Since there is an age limit using this money for a university education is not always possible. You may be younger than 55, which would make equity release in this fashion impossible. Take a look at all your options before you decide on one particular solution.

A standard mortgage in which you borrow against your property may work better in your younger years keeping the equity release plan like the lifetime mortgage available when you retire and need cash more readily than it may come in a pension. Plenty of advisers can help you choose the right decision.

Parents can feel free to put their property into the hands of Stonehaven, since Stonehaven is a member of SHIP & the FCA which are both institutions that safeguard the safety of homeowners by implementing rules and policies that must be followed by all equity release providers. Based on the needs and requirements of parents, Stonehaven customizes its Interest Select Plan to suit client’s needs. Call 0800 679 5169 to speak to a Stonehaven specialist about their Stonehaven interest only lifetime mortgage.

All you Need to Know about Home Reversion Plans

A home reversion plan in certain eyes could be considered a better equity release scheme for people over the age of 65, when compared to lifetime mortgages. However, it all depends on one's viewpoint and outlook on the future. Unlike a lifetime mortgage, Home Reversion schemes can actually have the benefit of receiving a choice of an income, or tax-free cash. In return for the tax-free cash, either part ownership or the whole property is transferred to the Reversion provider whilst you retain the right to reside in the property rent free for the rest of your life.

A home reversion plan is a scheme designed to unlock the equity tied up within the bricks and mortar of your home. By selling just a part of your property to the reversion company, you can use the funds raised for any purpose and still ensure that some inheritance is left to your beneficiaries.

Factors to remember about home reversion:
•    You sell a portion or your entire home, which decreases the amount of inheritance left for your beneficiaries.
•    Home values change during your lifetime, thus an increase or decrease in value of the remaining portion can happen increasing or lessening the inheritance left.
•    You will hold a lifetime tenancy agreement once you sell a portion of your home, which needs to name all those living in the house that can be a part of the home reversion scheme.
•    This scheme does offer tax-free cash that you can use to pay expenses, help with in home care, or to update your property for your ageing years.

Owing to the fact that the full ownership of the house is not retained by the householder, they therefore lose their market share as they now co-own the house with the lender. For this reason home reversion plans are not as popular as the lifetime mortgage schemes. Reversion plan sales have fallen over the past few years and now account for only about two per cent of all equity release sales completed.

This is because lifetime mortgages have taken over as they are more flexible, you retain 100% ownership, and you can build inheritance protection into lifetime mortgages. With lifetime mortgages, drawdown plans are available on a lifetime basis and you can benefit from any escalation in the house price, which you would only partly benefit from with a home reversion plan. 

The release of equity from the home is tax-free and involves no repayment of interest. A part of the house chosen for the income never hampers the guarantee for inheritance on the rest of the house. This scheme is beneficial to old aged people with the clause in action – the older you are, the more you would receive for the share you exchange. The equity you have remaining in the house is clear from the very start and does not depend on the age factor as do lifetime mortgage schemes.
 
Lifetime mortgage factors to consider:
•    You do not sell your home, but obtain a new mortgage on the home to draw out the equity.
•    You either have to pay off the mortgage before death or the home can be sold to pay it off.
•    There is no guarantee your beneficiaries will receive a portion of inheritance, unless you keep the mortgage small.
•    Like any home sale to pay a mortgage, the beneficiaries can inherit funds on the sale of property if the funds obtained do not need to cover the entire loan.
•    Your beneficiaries also have the option of paying off the mortgage to retain the property in the family.
•    There are four options with lifetime mortgages including enhanced lifetime mortgages that help those with an illness gain access to equity funds.
•    Lifetime mortgages, particularly roll-up plans, allow you to be 55 years of age instead of 65.

Both home reversion plans and lifetime mortgages have advantages that make them attractive. In recent years lifetime mortgages have had more flexibility making them the more attractive option to home owners. Some lifetime mortgage operators allow a second mortgage on a home, which can be a disadvantage for beneficiaries. With a home reversion scheme you cannot have a lien on the home, thus more protection is in place for potential inheritance later on.

Due to the lack of appetite for Home Reversion Plans only 3 reversion providers are currently in the equity release arena - Hodge Lifetime, Bridgewater & New Life Mortgages. If you want to speak to a home reversion adviser, call 0800 678 5159 today.

Determining How Much Money can be Obtained from Home Reversion Plans

Pensioners who have been able to acquire a property through their hard work and sacrifices can now use that property to enjoy their retirement. Equity release makes it possible for pensioners to release equity from their property. Home reversions are one of the less common equity release schemes. Home reversions allow pensioners to obtain capital or income by selling some or all of their property. Find out about the affordability of these schemes through a home reversion calculator.

Pensioners can decide what proportion of the property they wish to sell in order to achieve their financial goal. The advantages of home reversion plans are that plan holders are allowed to continue living in their property. This is available rent free until they pass away or are moved into long-term care due to the fact that they are no longer capable of taking care of themselves.

In order to know how much money they can obtain from home reversion plans, pensioners can make use of a home reversion calculator. Based on the life expectancy of the applicant, the calculator determines the amount that can be obtained from the provider.

A home reversion calculator uses different criteria than a normal equity release calculator. It requires much more information. You will need to submit additional details about your age, value of your property and the amount of equity you would like to release as a one-time lump-sum amount or as a fixed monthly income.

In comparison to a normal equity release calculator, a home reversion calculator differs in the amount and the type of questions it asks. This type of calculator will normally provide a higher amount for applicants with lower life expectancies and with bad health.

The results of a reversion calculator may be attractive and may have convinced you that a home reversion plan is the plan for you. However, there are a few disadvantages of home reversion plans that you should be aware of. These disadvantages are not made visible by the calculator.

The results of a home reversion calculator are never based on the full market value of the property. The full market value of a property is never used by home reversion providers due to the fact that they allow you to live in your property rent free for the rest of your life, even after you have sold your property to them and they have provided you with capital in exchange for some or all of it.

Home reversion providers set up a tenancy agreement called a lifetime tenancy. As long as your name and the other house occupants are named on the tenancy agreement you can remain in your home until you expire or are moved to a long term facility. For those named on the agreement it is the same way.

For instance, if your spouse is not ready to move to a care facility but you need to they can remain in the property until they are ready to move on. This is another reason the home reversion provider will pay under value for the portion of property you sell. The key to home reversion schemes is to find the provider willing to offer a fair price for the portion or entire home sold.

The main benefit is receiving tax-free cash you can use to live on, repair your home, adapt your home for your older years, or use for anything else. A secondary benefit is leaving behind a small inheritance for your family. The unsold portion of your home is sold after your death or you move on, which means the remaining value in your home is given to your beneficiaries.

Again, the remaining value is usually smaller than the current market value; however, the house is guaranteed to be sold and any money garnered in the sale above what you took out in the home reversion is given to your beneficiaries.
You also have the option of remaining in your home and hiring in home care in your advanced years. The funds from the portion you sold can be used to pay for this care. The home care individual can live with you or come on a daily basis.
 
Before you make a decision solely based on a home reversion calculator result, speak with a home reversion specialist. Agents are on hand to answer questions, clarify details, and ensure you understand both the benefits and disadvantages of selling all or part of your home. Once you elect to sell your home, even a portion, the reversion provider will sell the property to recoup their investment.

Is Home Reversion Becoming a Dinosaur?

Did you know that there were about eight home reversion plan providers back in July 2007, compared to only three providers in January 2013, which makes financial analysts wonder whether reversion schemes are slowly becoming extinct.

When applying for a reversion scheme the upfront costs will involve paying for a valuation fee, an application fee and any legal costs. Your options are that you can sell anything from 25 to 100% of the property value to the reversion provider depending on the product you choose. However, you will get a significantly smaller amount than the real market value, and this is the main disadvantage of a home reversion plan. The actual amount is dependent on your age, and the older you are the better the reversion package.

A good example of a home reversion plan is where a couple aged above 65 wants to release about £40,000 from a £200,000 home whereby they must sell about 58% of its value through a Hodge or a Bridgewater plan. However, a 70-year-old man who desires the same would only have to sell about 42% of the home value with Bridgewater or Hodge plan.

Typically, your life expectancy determines the amount that you can release, which can be very expensive if you die too soon after taking out the equity. Some providers will offer you an early vacancy guarantee, meaning that you have a guarantee to a particular percentage of the property value back in case you go into long term care or die within the first 4 to 5 years. All these schemes found here are portable from one property to the next.

UK homeowners are currently releasing more equity from their homes, which has risen by an average of about 7%. This increase is significant if you consider the fact that home reversion is slowly dying, it means that more people are opting for lifetime mortgages, and indicates that more people are living on a meagre pension that cannot meet their needs.
 
Notably, more than 74% of all home equity releases were Drawdown compared to 1% for home reversion and 25% of lifetime mortgages. Most customers were using most of the money to clear loans and credit debt, and paying off their current mortgages, which typically allows more money in their pockets. Home and garden improvements also took up a significant share of equity release funds.

Certain usage of the funds is better than others, since it means selling all or part of your home. Home or garden improvements are nice for those looking to live in their home a long time; however, there is definitely a disadvantage to this choice since one could live beyond average life expectancy and run out of pension or equity in their homes before they are ready to move on.

Home reversion plans may not be used as frequently as in the past, but for some there are still appealing benefits. This will keep this type of plan around for a few more years. Transparency regarding how these schemes work has also helped bring a resurgence of reversion schemes, albeit small.

Beyond the monetary gain is the inheritance factor of both reversion and lifetime mortgage schemes. Lifetime mortgages keep the property in your family. Your beneficiary can inherit the house; however, it will have a loan on it that must be paid upon death or moving to a long term care facility. It can mean your remaining family will need to sell the property to cover the equity loan you had on it. For this option there is no guarantee of inheritance, especially based on the amount of the loan.

Home reversion equity releases are different in terms of guaranteed inheritance. As long as there is a portion of the house that remains unsold, your beneficiaries can benefit from the sale of the home. Unfortunately, the value they are paid for the unsold portion is lower than market value, just as it was for the portion you sold.

Reversion schemes work on the premise that you will live out your lifetime in the home, which could be as little as a year to five years or more than 20. A provider makes money on the increase in value of your home when they finally get to sell it to a new owner. It is for this reason many avoid the home reversion market and seek lifetime mortgages. In the end, a lifetime mortgage family can sell the property for its true value thus offering a potential of inheritance versus a lower inheritance due to lower market value.

How Do I Calculate Whether I Can Borrow Extra Cash From My Prudential Equity Release Plan?

For a great number of people considering Prudential equity release, calculator equity release simulators can provide a good indication of how much equity they could potentially release from their property. However, many people with existing plans also often wonder if they can borrow additional cash on their current plan. This can depend on a number of factors, which may differ from those taking out a new plan.

What are the factors calculators use for new applicants?

With the Prudential equity release calculator, equity release limits can be calculated to provide an illustration of whether it is suitable for the home owner's requirements. Calculators such as these collate the information for a number of determining factors including the age of the applicant or applicants, their current medical health, the location and value of the property, and the level of debt currently secured on the property. These are the factors generally considered by most equity release providers before a plan can be approved. This is because there are strict regulations and rules in the equity release industry to ensure that no home owner ends up owing more than the value of their property or leaving a debt to their estate when they are deceased.

Why is the applicant’s age important?

When applying for an equity release product such as a lifetime mortgage the applicant's age or in the case of joint applications, the younger applicant's age is important. The main reason for this is how the lifetime mortgage product is structured. Unlike a conventional mortgage, where a home owner makes payments to cover the interest and capital repayment, a lifetime mortgage has the interest accrued and compounded on to the loan. Since there are strict regulations to protect consumers from incurring more debt than the value of their property, the equity release provider will allow a smaller amount to be released on plans which will have a longer duration.

Does this differ on existing plans?

For those with an existing equity release plan, the methods of calculating if additional borrowing can be permitted can vary slightly. The details used for calculating new plans will still be a determinant factor, but there will also be a need for flexibility in the existing plan. Your current Prudential equity release plan may permit the draw down of additional funds or could have restrictions about additional borrowing or early repayment. This can vary according to the provider and the individual terms of your plan. However, the provider will generally provide a method which allows existing clients to determine if a further release is possible, for example the Prudential equity release calculator. Equity release calculators will allow a maximum possible borrowing scenario to be presented, but you will need to consult with your specific scheme manager to check whether it is possible for your specific plan.

Do I need to use a calculator?

In some cases it may not be necessary to use the Prudential equity release calculator. Equity release advisers and brokers will have already advised whether additional draw downs and borrowing are allowed on your specific plan. If they are permitted as a feature of your plan, your provider will provide an annual statement detailing the current balance of the loan and the figure which is available to be used as an additional release. If you are unsure whether your plan permits the borrowing of extra cash, you should check your provider paperwork or speak to your scheme manager.

My plan does not allow for borrowing any extra cash, is there anything I can do?

If your plan specifically does not permit borrowing any extra cash, you should speak to your scheme manager. It may be possible to make additional arrangements for extenuating circumstances or re-mortgage to a new plan. However, this may not be possible, so it is important to assess the restrictions or limitations of your specific plan with your adviser or broker before committing to the equity release.

Your adviser or broker is obliged to assess the product suitability for your circumstances, but there is a responsibility for home owners to provide an accurate illustration of their financial circumstances and preferences. If there is a potential for repaying early or needing additional borrowing at a later date, these concerns should be discussed with your adviser to ensure you are matched with the best suited product to your requirements.

If you have concerns about the Prudential equity release calculator, equity release restrictions or additional borrowing, you should speak to your scheme manager. They will be able to advise you of the specific restrictions and limits applied to your particular scheme and whether borrowing extra cash is possible.

The Value of Equity Release Calculators

The development of the internet has had a huge impact on almost every industry. More and more companies and consumers are using the internet for even major purchases and making important decisions. A great number of companies in the financial sector have harnessed the power of the internet, which has allowed online companies to offer exciting deals on a variety of financial products. Even specialist areas such as equity release have benefited from this expansion and many companies both on and off line offer solutions which have been specifically tailored to the over fifty-five market. Although specialist advice is necessary, there are a number of useful tools provided such as the Stonehaven equity release calculator, which allows consumers to make initial research on whether equity release would suit their requirements.

Why are online calculators needed?

While many people are aware of the general borrowing rules surrounding conventional mortgage products, equity release schemes such as lifetime mortgages have different restrictions. Tools such as the Stonehaven equity release calculator allow home owners to discover whether the limitations of equity release schemes would provide them with sufficient funds for their requirements. Many home owners are unsure whether they can release sufficient equity to provide a lump sum or income and cover the full repayment of their current mortgage or debt. The calculator will provide an illustration of the maximum equity release possible, which can assure the home owner that is worthwhile taking the time to consult an equity release adviser or broker.

Are the calculators easy to use?

There are a number of different equity release calculators available. The use of these can vary according to the specific website. However, there are a number of calculators which have been specifically designed to provide great ease of use. For example, the Stonehaven equity release calculator is remarkably easy to use. It is perhaps one of the easiest calculators on the lifetime mortgage interest only market. By collating your details, it can assist in finding the Stonehaven plan which would appear to be the best suited to your requirements. This simple to use tool can provide a very fast response to your enquiry.

What information is needed for the calculator?

The calculator will normally require the information required by the providers to make a decision. This will include details such as the age and current health of the applicant or applicants, the geographical location and estimated value of the property and any debts which are currently secured on the property such as an existing mortgage. It is important to enter the details as accurately as possible in order for the calculator to provide the most relevant information. The Stonehaven equity release calculator will collate the data accrued with the asked questions and display a number of potentially suitable results including different rates of interest, interest options available and the options for lump sum payments. You will then have the opportunity to further research the options by selecting them according to your attitude to the interest rate or release of equity limitations to highlight your potential solution.

Are the calculators free to use?

Most calculators are very easy to use and are provided free of charge. This can allow home owners great control to explore a number of options to decide if they think they may be interested in learning more about equity release and whether it is suitable for their requirements. There are a number of prominent companies which specialise in equity release and offer online tools to aid their potential clients such as the Stonehaven equity release calculator. You can utilise these tools to assess whether equity release is feasible for your current financial circumstances and whether you meet the required criteria for the schemes offered by the provider. This can be extremely helpful to save time making adviser appointments or speaking to brokers, if you discover that you don't meet the age criteria or would be unable to satisfy your requirements with the maximum possible release. With the availability of the internet, these helpful tools can provide enough information to encourage home owners to seek out the further assistance to locate the option which is best suited to their requirements.

The internet has encouraged a great number of providers to offer equity release schemes. This increased competition has been extremely beneficial for consumers who may now be able to secure a deal with a highly competitive interest rate. The tools offered such as the Stonehaven equity release calculator can allow consumers the ability to seek out the best interest rates and provide additional information which can assist in their ultimate decision.

Using a Lifetime Mortgage or Equity Release Calculator

Equity release schemes have become far more commonplace in the last few years. With the regulation of the industry and more household company names now offering equity release, more retired people are exploring the options it could provide for their specific circumstances. Any initial internet search will enable you to find an equity release calculator for a great number of companies and providers. However, you may be unaware of the benefits that using an equity release calculator can provide.

1. Quick confirmation of the criteria:

The equity release industry has different requirements when compared to some other more conventional financial products. Just as there are specific requirements for a conventional repayment mortgage such as your age, income and employment status, equity release schemes have specific criteria which need to be met. When you find an equity release calculator online, you can obtain a quick confirmation of the required criteria and whether you would qualify. For example, while many people are aware that retired people tend to use equity release as a solution for their financial requirements, a great number are unaware that there are age restrictions. Those people who are younger than fifty-five will be unable to secure an equity release scheme, so can quickly dismiss this and seek alternative arrangements without wasting time.

2. Provision of a maximum possible lump sum:

For many people the maximum possible lump sum available on equity release schemes will determine their final decision. When you find an equity release calculator, it will ask for the answers to a variety of questions to determine the maximum possible lump sum. A number of calculators have been designed to supply the best detail of information. This can include a standard maximum and one which details enhanced rates. These enhanced rates are usually applicable in cases where there is a history of ill health. Many providers will offer a larger sum of equity release in these cases. By assessing the maximum possible lump sum, you can ascertain whether an equity release will provide sufficient funds to meet your requirements.

3. Interest rate illustrations:

There are a number of more comprehensive calculators which will also provide interest rate illustrations. This will allow you to explore the potential repercussions of taking out the maximum possible lump sum. You will be able to research the implications on the amount of money which could be left to your beneficiaries, since the interest on lifetime mortgages will accrue and be compounded on to the loan amount usually on an annual basis. This can be a very helpful way to understand the figures which would be involved in the equity release process, allowing you to make a more informed decision about whether you would like to proceed further.

4. A tailored example:

For many people when they find an equity release calculator, they can obtain a tailored example of the benefits equity release could provide them. More sophisticated calculators will collate the information you have provided to their slightly more in-depth questions to provide the details of a maximum lump sum amount and applicable interest rate for your circumstances. The calculator will assess the status of your health according to the provider's criteria to determine whether it may be possible for you to release a greater proportion of the equity in your home. Apart from the value of the property and age of the applicants, heath can be the most determining factor. With those in a poorer state of health often offered a higher rate of release, it can help to be provided with a tailored example to assess the feasibility and whether equity release is worth pursuing in your current position.

5. Saves time:

In a great many cases using an online calculator can also help to save time on your equity release application. Equity release brokers and advisers are legally obliged to ensure that you are aware of your options and that equity release is best suited to your requirements. By using a calculator, you can meet with an adviser or broker and be able to easily answer their fact find questions since you have already begun to research your options. If you have also managed to locate what you consider to be the best possible deal, you can supply this information to your adviser, who can then use it as a basis for finding you a great deal.

When you find an equity release calculator, it is important to realise that the figures provided illustrate the maximum possible equity release. This may be adjusted according to the specific requirements of your chosen provider. In many cases, the calculators can provide very accurate information, but it is important to be open to the possibility that your broker may find a deal which better suits your needs.

What to Know when Choosing Best Equity Release Interest Rates

In order to be able to choose the best equity release interest rates and deals, you must have sufficient information on the different types of equity release schemes. The two most common types of equity release schemes include the home reversion plans and the lifetime mortgages. If you are planning to consider equity schemes for your property, you must know the advantages of each equity release scheme. Once you know the advantages and you have sufficient information on the interest rates, you will be able to choose the right equity release scheme for yourself.

The lifetime mortgages allow you to obtain a loan against your property. The loan amount and the interest rate are affected by various factors in your life. For example, your health can make you eligible for a higher loan amount. The poorer your health the more money you can get. It is always advisable to contact an expert for advice when considering equity release schemes.

Home reversion is a different option altogether in equity release schemes. You do not have to find the best equity release interest rates when contemplating home reversion. It is not a loan, but an actual sale of your home. You sell all or part of your home for a certain value, which is under the actual value of the home. For example if your home is worth £200,000, the home reversion provider might offer you £180,000 for the entire house. You can sell anywhere from 20% to 100% of the house and live in it rent free for your lifetime. In this situation you do not have a loan or compounding interest. This can be an option if you are worried about the interest or mortgage you might leave behind.

Equity release mortgages ensure you still own your home. The fact that ownership remains yours is one of the many reasons homeowners consider going with a lifetime mortgage versus home reversion. Like any equity loan you have the ability to take out as much as you require based on fair market value, health as previously discussed, and your age. Age is an important factor with the two options you have. A lifetime mortgage can be obtained when you are 55 versus the 65 required for home reversion.

It is imperative that you compare lifetime mortgage schemes to find the best interest rate. Many providers of equity release offer interest rates that are up to 8%. The interest rates are normally calculated and compounded until the end of the equity release scheme. The interest will then have to be paid in full together with the initial loan amount. Some equity release schemes such as the interest only lifetime scheme allows you to pay the interest amount on a monthly basis, so in the end, only the initial loan amount will have to be repaid.

The standard lifetime mortgage is called a roll-up mortgage. You also have the interest only lifetime loan, enhanced mortgage, and drawdown. The enhanced lifetime mortgage is most beneficial for individuals with a serious illness. It is possible to access this mortgage before age 55 if there is a serious illness that reduces a person's lifetime. However, the standard age is 55. A person accessing the enhanced lifetime mortgage usually has to have a diagnosis in which no more than a year is left.

The drawdown mortgage allows you to take a lump sum and then monthly payments or just monthly payments. It is set up with a specific allotment amount for the equity loan, which one can draw on for a specific time frame before needing to re-evaluate. With this type of mortgage you only pay interest on the amount you have withdrawn from the equity account rather than the entire amount you were allotted.

When dealing with equity release interest rates, it is essential to understand the meanings of various basic terms. Learning some basic terms has been seen to be very beneficial. For example: APR stands for Annual Percentage Rate. Annual Percentage Rate or the APR is calculated by every lender. These lenders use a standard formula in the overall mortgage industry. The Annual Percentage Rate (APR) helps to determine the overall cost of borrowing.

To learn more about best equity release interest rates, it is essential to contact a real equity release scheme expert. These experts will help you to understand the various interest rates that are present in the market and will help you to obtain information and options that are the best suited for you.

Equity Release Solicitors are Needed to Complete the Equity Release Process

Equity release makes it possible for homeowners who are at least 55 years old to release money tied up in their property. In order to complete the equity release process, which will result in homeowners receiving tax-free income to spend in whatever way they choose, equity release solicitors are always required.

The equity release provider will require their solicitor and the borrower will need to have his or her own solicitor engaged in the process. Laws were passed requiring the borrower to have a different solicitor than the lending company.

When choosing a solicitor, homeowners should choose a solicitor who is a member of the Equity Release Solicitors Alliance or ERSA. ERSA was established on January 26th 2009 and consists of a group of law firms that specialise in equity release. The main goal of ERSA is to make sure that homeowners have expert legal advice before taking out an equity release plan.

Solicitors who are members of ERSA are required to have years of experience in equity release. Their experience will benefit their clients in that they will make sure that the legal aspects of the equity release process are adequately taken care of.

The process of equity release will start with an application. This application determines if the client is the right age and in the right situation to enter into equity release schemes. Solicitors will help with the paperwork filling out necessary information and explaining what the application is for. They will also be there to help make sure all information is accurate for the provider’s solicitor in case questions arise.

Equity release solicitors provide guidance to homeowners throughout the entire equity release process. They make sure that homeowners are aware of the risks and the rewards of the equity release plan that they have chosen and the legal obligations attached to it.

Equity release schemes are varied in form. Solicitors can help a homeowner choose the equity release plan that best suits them. For instance, the enhanced equity release mortgage allows a person to be 55 years or sometimes younger. The enhanced option is for those who have a serious illness with a certain expected amount time left in this world. For further details regarding Enhanced Equity Release visit www.WhatIsEquityRelease.org.

Home reversion, which is not a mortgage but a home sale and another form of equity release requires you to be 65 years or older. You sell all or part of your home to a lender in exchange for funds to use for expenses. The solicitor hired to help with equity release should explain both options in detail.

Like comparing the equity release schemes for the best option available, it is possible to compare solicitors available for equity release. Since the solicitor will be a part of the entire deal including when it is time to sell the property, you want to ensure you hired the right person.

Equity release solicitors also ensure that once the property is sold, the equity release provider receives the initial capital that was lent to homeowners and the accumulated interest.

Finally, it is the responsibility of equity release solicitors to make sure that they complete the Safe Home Income Plans or SHIP certificate. The SHIP certificate states that the equity release plan was discussed with the homeowner and that the homeowner understands the consequences of taking up the equity release plan. It is not possible for an equity release plan from an equity release provider who is a member of SHIP to proceed without a signed SHIP certificate. In the SHIP certificate, the equity release solicitor is acknowledging that all of the essential features and implications of the equity release plan have been brought to the attention of the homeowner. The SHIP certificate makes sure that there are not any future misunderstandings & provides another layer of protection in the regulation of these financial products.

There is no obligation during the process to go through with a home reversion or lifetime mortgage equity release scheme. It is only when all the documents are signed that the obligation exists for the homeowner. It is the job of the homeowner to ensure they are comfortable with the paperwork and details of the equity release programme before signing any of the paperwork.

Since solicitors are hired by the homeowner, any questions that a homeowner has can be answered before the process is complete. It is the responsibility of the homeowner to voice any confusion or worries they might have about the process. Equity release solicitors will conduct their job as appropriate; therefore, homeowners must also do their due diligence.

Legal Viewpoint of the Lifetime Mortgage Application Process

A lifetime mortgage application like any other mortgage application must go through rigorous application post sale legal checks. This will include checking the property ownership, any adverse credit and the property boundaries. Sometimes legal fractures start appearing as occasionally matters arise where a previous conveyancing solicitor may have overlooked certain issues.

Boundary disputes are becoming more prevalent and it is usually down to the virtues of mediation that resolves the closest of battles sometimes. Here both parties’ solicitors can broker a deal to resolve each party’s rights and future ownership of the aforementioned piece of land, which may cause the trouble. To avoid these kinds of disputes, one needs to seek professional help. This will make the overall equity release process easier and one can follow the simple steps not forgetting any third parties involved.

The first thing is to decide whether you want to take out a home reversion plan or a lifetime mortgage, and if you are not sure about the best option you can always seek help. A professional financial equity release adviser will analyse your current financial situation, your current mortgage if any, as well as recommend the best lifetime mortgage plan for you. Additionally, they will also take time to explain how the chosen equity release plan will affect your eligibility for tax benefits and or welfare rights.

Home Reversion versus Lifetime Mortgages
Home reversion allows the homeowner to sell all or part of their property. You have an option of selling 20% of your home for funds to use on expenses. The 20% you sell will not be at current market value. Instead, you are given a reduced payment amount because the home reversion provider is waiting to sell the property. You get to live in the property no matter the amount you sell, including 100%. You live there under a lifetime tenancy agreement. It is only when you decide to move out or die that the home reversion provider can sell the entire home, obtaining their investment.

A lifetime mortgage is an actual loan on property you own and retain ownership for. It is different since you have interest accruing for as long as the equity release is in place. Only when you decide to move out or die will the home be sold to pay off the mortgage. The heirs you leave behind make the sale and any debts outstanding will need to be paid off. As you can tell there are differences between both plans, which is why your family should be a part of the decision.

Before you complete an application form, you need to discuss with your family the decision you are about to make, since this will ultimately affect them too. Apparently, you find that many children are financially secure and understand the need for their parents to release equity funds to make their retirement more pleasurable. However, it is also good to let your next of kin know what you are planning, since this may mean that they will not inherit 100% of your home. Additionally, they will need to understand the implications of repaying the plan in case of death, the sale of the home, or when one needs to move into long term care.

After deciding on the lifetime mortgage to take and discussing with the family, the next step will be to complete the application form, which you can do with the assistance of your broker. Then submit it to the provider along with the necessary information to facilitate a property valuation. While one does this, it is important that they understand the terms and conditions of the plan, and in order to do this properly, one can work with a solicitor in order to understand the terms and conditions fully before eventually signing the equity release mortgage deed. After signing all the paperwork and the solicitors have completed their legal checks, the money is then released and paid via their solicitor into an account of their choice or have a cheque made payable to them. They then have the freedom to spend the equity release proceeds as they wish as no constraints are placed on how they decide to spend their money.

The lifetime mortgage application can be filled out at a homeowner’s convenience. Even when you fill out the application it does not mean you are under obligation to pursue an equity release scheme. The application begins the process in the event you and your family decide home reversion or lifetime mortgage fits your needs.

Afterwards if you do have regrets over the option you originally chose or perhaps a new ground breaking incentive equity release plan came onto the market you have the option to switch equity release plans, for a fee.

Just 5 of the Ways to Show how Highly Protected the Equity Release Marketplace Now is

If you are keen to supplement your pension with a little extra income but, in the past, you have shied away from equity release because it seems too risky an option to contemplate, now might be a good time to reconsider this reticence.

While it is true that there are some disadvantages that come with taking on an equity release policy, it is also the case that many of these can be easily avoided or resolved if you choose your policy carefully. Critics of this kind of scheme often cite the fact that equity release significantly detracts from your deceased estate, for example, and also draw attention to the dangers of saddling your next of kin with debt in the future.

However, both of these drawbacks can be easily dealt with. In order to ensure that you leave your family some kind of inheritance, make sure that the policy that you choose has a clause stipulating that some estate will remain untouched and be passed on to your next of kin.

A fear that the size of the loan you take out will eventually grow to be greater than the value of your property is not entirely unfounded. However, again, this is an avoidable outcome. Sign up for an equity release policy in which you pay off the interest accumulated in monthly instalments; this will ensure that the loan remains the same size over time.

Various options exist for releasing equity from your home:
•    Home reversion
•    Lifetime Mortgage Roll-up
•    Drawdown Lifetime Mortgage
•    Enhanced Lifetime Mortgage
•    Interest-Only Lifetime Mortgage

Each type of release plan has different drawbacks and benefits. If you are in a situation where you have extra monthly income the interest-only lifetime mortgage is most beneficial regarding loan disadvantages. You take this disposable income to pay for the interest rate on a monthly basis eliminating all but the principle of the balance for the loan. Most individuals take out equity because they lack enough monthly funds to pay their finances.

For this reason you have other options like the roll-up. This is the standard choice available to you in lifetime mortgages. You need to be 55 or older to qualify for this loan. If your application is approved you will receive a lump sum, lump sum with monthly instalments, or monthly instalments from your account. You can choose who you wish to be paid. Many like the drawdown equity release scheme in which you gain a lump sum then monthly instalment or just monthly instalments because you only pay interest on the release of money you take out versus the entire sum.

Enhanced lifetime mortgages are for special needs. Typically, a homeowner has a shorter life expectancy due to age or a difficult illness. There have been instances in which an enhanced mortgage was awarded to someone younger than 55 because of an illness. It is rare and case by case.

Home reversion is not a loan like the lifetime mortgage plans. Instead, you sell a part of your home or perhaps all of it. You decide on your comfort level for the amount you sell. You have the option of releasing all the equity or not in a lump sum. Like lifetime mortgages there are monthly instalment plans. The difference with this release of equity scheme is age. You are required to be 65 years or older to begin this process. Many find this option safer for inheritance.

Since you retain a portion of your home that can be sold after death, your heirs are almost guaranteed a certain percentage upon your death. The percentage can be smaller or larger depending on the housing market. If your home increases in value there is more inheritance for your beneficiaries.

Lifetime mortgages are based on the amount of value your house is at the time of sale. As with fluctuating values, there is always room for reduced inheritance with no guarantee in the lifetime mortgage plan. The ideal way to ensure there is something left is to take no more than 50% of your home’s current value in equity.

In short, equity release is a widely varied market today. It is possible to find policies that safeguard against all manner of risks so that you can enjoy a happier, well-funded retirement. All it takes is a little research of the market, your situation, and a family conversation to determine what the best solution is for your circumstances. Every homeowner has needs and many can find a solution in the release of equity.

Necessarily Come With the Lowest Interest Rate?

Lately, equity release schemes that help older people gain access to the equity in their home have gained popularity. In addition, the inception costs for equity release applications, which include interest rates, are fortunately also falling. This can present an opportunity for those with existing equity release schemes, should they be looking to better their existing deal, or even wanting additional funds to help them in loan comparison site. Searching for the best equity release requires an exploration of types and interest rates.

Actually, by switching equity release providers one stands to save money by finding the latest and best equity release mortgage available in the market at that time. Different companies such as Aviva, LV=, Stonehaven, more2life and Just Retirement have all recently reduced their rates making EquityReleaseDeals.co more affordable. Though the changes seem small, they make a significant difference to an individual over the long term for anyone who wishes to protect their inheritance and save money.

Typically, an equity release scheme will allow a homeowner to take out equity in the form of compare travel insurance from their home. The most popular equity release scheme is the lifetime mortgage that as this title suggests will last for the duration of the homeowner’s life. This will be until the property is sold or they go into loans comparison. The recent interest rate cuts mean that one ought to research and check whether they stand a chance to reduce the overall cost and switch lenders.

On the other hand, one should also be aware that may apply on switching from the old scheme and these can erase all benefits earned on transfer. Therefore, there is a great need to make careful considerations before switching providers. For instance, if you took out an equity release plan over 5 years ago at 7% and you are now looking at reducing it to 6% with a different lender, if there are early repayment charges this penalty may erase any savings that were to be made by switching to a lower interest rate. This means that unless you have very good reasons to switch lenders, stick to the one you have. Alternatively, wait until you are older before making the change.

The interest roll up factor means that the loan can double up in size over the next 10-12 years leading to an ever increasing balance. Therefore, to manage this roll-up effect, consideration should be taken as to how the cash is withdrawn. Today’s drawdown lifetime mortgage schemes help counter this drawback. By gradually withdrawing equity, it is much cheaper than taking in one fell swoop, the reason being you only pay interest on the amount that you actually take out. This is a perfect idea for an individual whose pension is insufficient to meet their needs or who needs additional funds for paying for care.

Another option to combat interest rates associated with lifetime mortgages is the interest only lifetime mortgage. This scheme allows you to pay interest on the loan over your lifetime. It in effect reduces any interest left at the time of your death or house sale. The principle of the mortgage is left and must be paid; however, you do not have to worry about the accruing interest. This only works if you have significant disposable income.

While not all equity release options will work for you, there is at least one type that might. This will be the best equity release for your situation, not necessarily what a lender offers or wishes for you to accept.

Before you sign up any application form, it is critical that you seek independent equity release advice. You should also insist on seeking the opinion of a solicitor who understands the legal jargon better than you do, and who understands very well the implications of the release on your heirs and estate as a whole. In the UK, equity release companies adhere to a strict code which was initially laid down by the SHIP (now rebranded the Equity Release Council) code of conduct that licenses only qualified solicitors and financial advisers.

Speaking with a qualified solicitor or agent regarding the best equity release can help you find the right solution. It can help reduce your worries and in many cases make the entire equity release process a little easier on you. Even by filling out the application you do not need to follow through with an equity release, so make sure you are comfortable first.

Equity Release - a Guaranteed Source of Income

Are you living in the UK? Are you in your retirement period? Do you own a property? Do you need an extra source of income? If your answer to the above questions is yes, then equity release UK is the solution that you have been looking for. You might be wondering to yourself what equity release is. Equity release is a way of releasing equity from your property.

Equity release schemes provide a number of benefits. One of the main advantages is that you are able to obtain a loan against your property or you are able to sell your property or a part of your property for income without having to move out of your property. You are given the opportunity to remain in your home even after you have released money from your home.

Home Reversion

Home reversion is the sale or partial sale of your home in exchange for lump sum funds. It can also be set up in a monthly instalment. You do not retain full ownership of your home; however, you retain your right to live there through a lifetime tenancy agreement.

Lifetime Mortgages

This is a loan option, where the house is under your ownership. You receive funds based on the equity you have in the home. This option works with instalment or lump sum payments too. The main difference besides retaining full ownership is age. With any of the lifetime mortgages you can be 55 years of age and undergo equity release options. Home reversion requires you be 65 years old.

Another advantage of equity release schemes is that the money that is released from your property is tax free. You will not have to pay any taxes from the money that is initially released from your property. However, if you use the money released from the property to generate additional income, the additional income will be taxable. Only the initial income released from the property is not taxable.

There are several different types of equity release schemes. The repayment of each equity release scheme normally takes place when the property is sold. The property is normally sold when you and your partner die or move into long term care. In such cases, you will no longer need to remain in the property. In order to repay the loan, the property will be sold.

• Home reversion is already partially sold, which is why the remainder of the property will be sold. It will be sold for the current market value; however, your remaining relatives will receive a slightly smaller amount of inheritance on the sale to cover costs the provider incurred during the lifetime tenancy agreement.
• Home reversion also has another option to the sale of the house. There is a clause in this type of equity release UK scheme that allows a buy-back of property sold. This option allows the homeowner to buy any portion sold, but at current market value and incurring costs associated with the closing of a loan. It is often ineffective cost wise, but it is an option you and your heirs should be aware of.
• Lifetime mortgages do not have to result in the sale of your home. Your heirs can use any money they have to pay off the interest and outstanding mortgage. The typical case is often that your heirs have no other option to pay the mortgage but to sell the house covering the mortgage. This is often why the myth of the property being sold no matter what came about.
 
Equity release schemes directly influence each aspect of your life. This is why you need to carefully consider all of your options before you opt for equity release as the solution. You need to consider how your children will respond to you opting for equity release. In essence, you are taking away their inheritance from them. Some children choose to repay the loan so that the property would not have to be sold to repay the loan. It is advisable to discuss the options with your children before opting for equity release.

Your family matters to you. With the different advantages that come along with equity release UK it is imperative you think about all aspects of the lending process. Discussing it with family is just one more step to figuring out what option is best for you and your circumstances. You can also seek legal advice through an equity release solicitor in order to ensure full understanding of the process.

Keep up to date with important Equity Release News

For people who are closing in on the age of retirement, equity release schemes become extremely important. Anyone who has a house or flat in their name becomes directly eligible for such schemes which offer lifetime mortgage plans and present a lump sum money and/or monthly income. People over the age of 55 find these equity release schemes a lot more attractive as they are around the age when they start to think about life after retirement. Yet, it remains important for them to choose the right scheme so that they can achieve their goals as well. Keeping abreast of equity release news is one way to learn about potential retirement options before you are even ready.

Equity release has many advantages; however, without sufficient knowledge on the concept and a proper understanding of the advantages and disadvantages of the many different equity release schemes available, you can end up choosing an equity release scheme which does not meet your requirements or expectations. Since this is a decision that is not easily reversible, it is recommended that you are fully informed on all the details concerning equity release before making a decision.

It is therefore always a good idea to have a quick read through the latest news surrounding Equity Release from websites such as www.ReleaseOfEquity.org.uk. There are many retirement magazines and websites with the latest rates, plans, providers, trends, facts and gossips regarding equity release which can prove to be extremely helpful in helping you to make the right decision.

In the past few years, such magazines and websites have grown increasingly popular as they not only provide information but they have also started to give out information and advice on equity release schemes. From listing details about the different release schemes that are available to giving advice on how different schemes and deals can help you meet different requirements, these magazines and websites can prove truly wonderful when it comes to getting good information on equity release schemes and how to choose them.

An added benefit to some of these resources is the other tools provided. News and updates to the industry through press releases are just a few ways you can learn about the latest products to hit the market. If you wish to learn more about the rates being discussed and particular plans that are interesting to you, consider using the equity release calculator too.

There is a calculator online with many of these websites and mortgage providers. The calculator is designed to tell you the potential amount of equity you can release from your home. This is a number that will always vary from person to person, and even by company. Certain companies will not release as high a percentage to keep the possibility of negative equity build up at bay. Others feel a quicker return may occur and therefore they are willing to provide more funds. Enhanced lifetime mortgage is one of these options.

Enhanced lifetime mortgage is designed for people with lower life expectancies due to illness or disease. Given that a retiree may have ten years suffering from an illness versus a healthy person that has 20 plus years, mortgage companies are willing to provide larger lump sums. Of course there is no guarantee of life and life expectancy cannot be calculated, but it is weighed for the average result.

Another factor that determines the amount paid out is your home value. If you have not completed a recent valuation of your home, you might wish to look on some of the more mainstream real estate websites. Zoopla is not always accurate, but it could give you a good idea of what your home is currently valued at. This will help in the calculations and you may decide that you wish to wait another year. With the housing market returning there could be great news for equity release products.

You should also keep up to date with all housing news if you are looking to refinance, gain an equity release mortgage or are considering home reversion equity release. The current housing market is always going to determine what is happening to the value of your home thus you can be ready to make your move when the market is decent.

By reading these retirement magazines and by visiting websites which provide equity release news, you can be guaranteed that you will have sufficient information to help you make an informed decision thus resulting in you choosing an equity release scheme that would suit your requirements and your needs the best.

The Most Frequently Asked Questions Surrounding Equity Release

Buying an equity release is a complex decision. It requires a good understanding and knowledge about all the terms and conditions associated with an equity release scheme. People are quite confused and seek around to find answers for some of the most important questions surrounding equity release. Look at frequently asked questions for simple answers. For most of the people, buying an equity release is a onetime decision so everyone wants to know and understand the impact of buying an equity release on the rest of their life.

The first and the most frequently asked question is whether a prospective equity release buyer will qualify for an equity release scheme. There are certain basic clauses such as minimum age of the person, standard quality construction of the property, health status of the buyer etc. Unless and until a buyer fulfils the minimum eligibility criterion, the buyer is not eligible to take an equity release scheme.

Qualifications
• Lifetime mortgages require you to be at least 55 years of age
• Home reversion mortgages ask that you are 65
• Lifetime mortgages are generally not offered past age 75
• Home reversion tends to be given before a person becomes 80
• The house is going to be sold in most cases for payment on the loan and certainly with home reversion. This means the home will either need repairs with the money attained or will not qualify if it is not of proper construction.
• Your health could provide a larger lump sum if you have an illness
• Life expectancy cannot be calculated but to ensure someone can afford to pay the principle balance back and compounding interest there are certain health questions to determine if the person will or will not live longer.


The second frequently asked question is about the amount that can be released and whether the equity release buyers should release the entire amount in one go or take a cash reserve and withdraw the money according to the needs by taking an equity release drawdown scheme.

Specifics for Amount Released
• The amount of money released is related to the value of your property
• It is also a concern of your age. A person who is older or who has an illness that lowers longevity can often get more money in a lump sum.
• The equity released is a percentage of the home value. If your home is worth £250,000 and you are 70 you may be able to get 55% of your home value. Standard lifetime mortgages are between 22% and 60%, but there is some leeway depending on the provider.
• Home reversion is a percentage of the home or all of the home that is sold. It means if you sell £250,000 of the home, you still only get a percentage based on the potential increase of value for your home over time and your life expectancy.

Valuation Procedure
Another frequently asked question is regarding the valuation of the property and the method used by the lender to value their property for equity release. An appraiser of the provider’s choice is used to assess the house value. You can also hire an independent person to ensure the provider is being fair in their assessment.

Most of the potential equity release buyers are also concerned about their state benefits and want to know whether they would be eligible to enjoy the same even after taking an equity release. The money is tax free and does not interfere with your state benefits. Your pension is a separate concept from a lifetime mortgage or home reversion. It has been earned and cannot be taken away.
Most of the people who had a bad credit history also want to know whether they can take an equity release scheme or not. Bad credit can be an issue in terms of interest rates for lifetime mortgages; however, it will not stop you from getting an equity release plan.

Tax liability is not a concern because the cash lump sum is tax free. It is not counted as income or capital gains.

Some of the other most frequently asked questions include who will be the legal owner of the property after taking an equity release, what will happen to the property after their death or when they permanently move to a long term care and how it affects the property inheritance for their beneficiaries. It is highly recommended to ask as many questions as you have and are completely satisfied before buying an equity release scheme.

All You Need To Know About Equity Release Schemes

What is equity release? An equity release is when you retain the home you’re living in while receiving a lump sum of cash from the value on the home. There are many equity release schemes available, such as an interest only lifetime mortgage, home reversion, and roll-up lifetime mortgage. With each of the equity release schemes, the homeowner can remain in the home until they die or leave the home permanently. Also, with a few of the equity release schemes, you can live in the home rent free. The interest will continue to increase each month and won’t be repaid until you die or sell the property.

Many homeowners don’t know what is equity release because they haven’t been educated on the subject. Homeowners can find out information on equity release schemes by getting in contact with an independent equity release adviser. The adviser will let the homeowner know what equity release schemes are available and which ones would be best for him or her.

Whichever equity release scheme you decide to get will offer you some benefits. You will be able to have a steady flow of money coming into your home each month. The money that you are already receiving from your pension may not be enough. That is where the equity release scheme comes into place. There is no need for you to struggle to make ends meet when you retire. The money can also be used to buy things that you need, such as a car. All retirement individuals should buy themselves a new car when they retire.

Besides buying a car, fix up your home. Since you plan on staying in the home for as long as you can, you may want to redecorate. Hire builders and other professionals to tear down walls to build an extra bedroom or to install new bathroom fixtures.

An equity release can change your life. You can borrow the maximum amount or just what you will need. Once you find the right equity release scheme, all you will have to do is apply and wait for the money to start coming in. Your financial problems will be over once you receive the money.

There are certainly benefits to the products known as equity release; however, you also need to understand the disadvantages. You do not want to leave a difficult situation for your beneficiaries and remaining family due to troubling debt. Your beneficiary will have to pay off any mortgage you take out in the form of equity release. This is done with the estate you leave behind, but what if it is only a house? The house the loan is on? You would need to sell the house before you die or have it sold after your death. In the case of home reversion you actually sell a piece of your home or the entirety of it.

Home reversion may not have a repayment and interest, but you could end up losing your home for your family. On the other hand you do guarantee that your family has cash upon your death; of course, that is if you have only sold a part of the home and the current market value is not less than the payment you received.

Lifetime Mortgages
Lifetime mortgages are a different equity release from home reversion in nearly every respect other than getting tax free cash, a lump sum or payments, and attaining such a release during your retirement.

Basically, you do not sell your home which is a plus for many. Again though, you might have to sell to pay the loan back. The loan will also be accruing interest during your lifetime for as long as the loan balance is outstanding. This can be a particular problem for those who truly need to leave behind no debt because home values can change.

Your home may become negative in terms of equity in which case you need a negative equity clause to protect your family from paying back any amount the sale of the house did not cover. There is no guarantee of inheritance with this option.

As you can clearly see above, there are definitely situations that could make either home reversion or lifetime mortgages more appealing. Now that you have an answer to what is equity release, you need to determine the best deal for your situation. Speak with family and advisers before you commit to a financial product such as the above. You need to have all the information before you decide.

Where do I Find the Right Equity Release Schemes for my Parents?

For people in their retirement, the recent financial crisis may have made their financial standing much harder. Those who have retired may find that their pensions or investments are not providing the returns they had assumed when they left the workforce. For some, financial restructuring might be required and the right equity release schemes are what people may think about for their parents.

These people should look into how the right equity release schemes can affect their financial outlooks. With people struggling on the day to day, these financial products make it easy for customers to recover some of the value invested in their property, and put it toward ensuring a more stable financial future.

Equity release is a broad term which refers to many types of products. However, most people think of it as a lifetime mortgage. This specific product allows consumers over a certain age to once again mortgage their homes on agreeable terms.

The debt placed on the home is left until the property changes hands or is sold. Often the customer only pays the interest on the loan, making it really easy to restructure their finances into one simple payment.

Delving into Equity Release Schemes
There are four lifetime mortgage products on the market today: drawdown, interest only, roll up, and enhanced. Each of these mortgages requires you to be at least 55-years old and under 75 years of age. You are also required to fill out a health form for the retirees obtaining this mortgage. If you are the child and not the consumer who will take out the equity release, you may need to help your parent in understanding the different advantages and disadvantages that come with lifetime mortgages.

Under these schemes your parents will take out a mortgage in a lump sum or in a drawdown where your parents take money as they need it. Since it is a mortgage there is compounding interest. This interest payment is not due until your parents move out of their home, or sell their home for a new home. This is also when the principle balance is due.

The only product that is different is the interest only lifetime mortgage in which your parents will make monthly interest payments. This is an affordable option only if one’s pension or retirement funds are sufficient to take care of all daily needs, the interest payment, and the fun your parents wish to have in retirement.

Enhanced equity schemes exist for those suffering an illness or disease. Any life expectancy that is lowered is considered amenable to the enhanced lifetime mortgage terms.

The amount of the mortgage is determined by the valuation of your parent’s property. In light of recent issues with the housing market your parents’ property may not be as highly valued as it was two or five years ago. The housing market is returning though.

Home Reversion
Home reversion is not a mortgage so it will have no principle balance to be repaid and no compounding interest. In this situation you and your parents agree that you will sell a part of the home in return for funding your parent’s retirement. You can also sell the entire home and your parents will be granted permission to remain in the home for their lifetime. This is sometimes more acceptable since there is no payment at the end of the deal.

Your parents need to be 65 years and under 80 years of age. The house has to have a good value and there can be no regular mortgages on the property. The lifetime tenancy agreement covers anyone in the home reversion agreement, which means anyone over 65 can be named as a lifetime resident.

Health can also be a factor in the amount of money you receive for the home reversion contract. Additionally, like lifetime mortgages the money is tax free as it is not counted as income or capital gains.

Be careful as a consumer in your choice and help your parents with the right decision. You may find with a little savvy investment your parents’ retirement funds can return to a better amount, thus saving you both from starting an equity release scheme. Always discuss the issue at hand before making a decision.

It is important that consumers looking at these kinds of financial products understand what their risks are and have a source of impartial advice. For those considering equity releases, the Safe Home Protection Plan (SHIP) can provide some background information which can help make informed decisions about the right equity release schemes.

Getting Guidance on the Best Equity Release Provider Scheme

People have increasingly begun taking equity releases out of their homes in a quest to get some extra income for their projects. Retired people who do not have enough income are able to get more income to sustain them in this way. It also allows an individual to enjoy their retirement and to supplement their income, and this calls for one to select the best equity release provider scheme since there are many factors to consider when selecting one.

Equity Releases Explained
Many kinds of equity release schemes are available. The schemes typically allow you to take cash against your home’s value, with the variation in the loans being in whether you want to repay the loan and at what speed you would like to pay the loan. Hence, it is imperative that you look into different matters prior to choosing a home equity release.

For example, if your family lives further away and you would like to move nearer to them, the scheme may allow you to move houses within stipulated terms, considering the family’s desires to inherit the home in future. These factors all play a crucial role in helping an individual get the best in equity release. Consider seeking the opinion of a financial advisor as well as doing estimate calculations using an equity release calculator. A financial counsellor is in a good position to help you choose the best equity release provider scheme and among the many available, they will help you pick out the best one.

The number of providers has also increased with the swelling of demand for the same. For this reason, one must get enough prior information regarding equities and equity release in their area to get the maximum possible out of their homes. You can seek information from friends and relatives, while the internet is also very helpful in this area.

When researching on the Internet, you will need to first note down their details and contact them. After contacting the providers, ask about the various plans that they have and make a critical comparison to get the best deal possible. However, this exercise is not easy, and it would be best for one to seek help from a professional in the field.

Equity release providers are looking out for their needs, but also trying to gain a market share. This means the provider is going to offer competitive products; however, you want to make certain you are getting the best deal. To help in this you need a little background information.

Equity and Forms of Release
Equity is value that builds up in your home. It is generally the value of your home minus any loan you have on the property. If you have a 30 year mortgage at £170,000 and your home is £270,000 in value you have £100,000 in equity to release. You can go with a conventional second mortgage or equity mortgage when you are young.

When you are about to head into retirement you start looking for the best equity release provider scheme under retirement mortgages. A retirement equity release scheme is for anyone 55 years or older. You see, as a young person you are working and can afford to pay off two mortgages before you retire. At retirement you generally have your home paid for in full. You also do not have income coming in to make the payments on a new equity loan.

This means you need a mortgage that does not require any payment to be made until you die or decide to move your home. If you move to a new house you may be able to transfer the equity release. If you move to a retirement facility you may have to sell your home to pay the mortgage off.

During the period in which you make no payments interest is accruing. This compounding interest along with the principle balance is to be paid upon death or removal to a retirement or other home. Given this situation you do not receive full value for your property in the lump sum or withdrawal amounts the equity release provides. This keeps you from hitting a negative equity situation.

There is one other choice in home reversion where you do sell your home. You sell a part of the home in order to remain in it for the rest of your life with money to live on. For some, having no debt in the end is better than an equity release mortgage. Always compare to find the best equity release provider scheme.

Take a Closer Look at Home Reversion Schemes

How good would it be if you could sell only a part of your home and still live there for the rest of your life? You probably feel this would be pretty great, and the great news is yes, you could do so by choosing a form of equity release called a Home Reversion Scheme. It offers the occupant a lifetime tenancy agreement whereby you can remain living in your home for the rest of your life, rent free. Once you have decided to sell your home, the home reversion company pays you the market value of the sold property as a lump sum in cash or as a monthly income. You can choose to get a combination of the two as well.

With a home reversion plan, you will have to sign a legal document called the Lifetime Lease agreement. Under this agreement, you are no longer the sole property owner. The ownership of the home becomes the home reversion company's and the maintenance of the property and the payment of the utility bills remains that of the tenant's. You can sell either 100% of the property or a minimum of 25%. Based on the percentage of the property sold and the age of the property owner, you can expect to receive 20% to 60% of the property value.

Selling the entire home brings a greater amount of tax free cash; however, it is sensible to sell only a part so that after your death, there will be some share of the property left in your name to be inherited by your beneficiaries. In many cases, the old and chronically sick people sell the entire home as it is easier to raise money under the home reversion plan, without the implications of rolled-up interest that a lifetime mortgage has.

There are many reasons why a home reversion plan is still a better proposition than other loans and mortgages in retirement:

Once you have sold a part of the home, you can still opt to sell a remaining percentage of the property for the current market value

Age is a very predominant factor when you plan to sell your home under the home reversion plan. The minimum age for any home reversion plan is 65. The older one is at application, the greater the amount of cash they will receive for the percentage of the property forfeited. Home reversion plans are based on life expectancy.

Always get expert & impartial equity release advice before taking any form of lifetime mortgage or home reversion scheme. Also, ensure any scheme taken out has been recognised by the Equity Release Council (formerly SHIP). An expert in home reversion will help you with the lifetime tenancy agreement.

Like any tenancy agreement, what is written in the contract determines how you can use the property and what remains under your control. If you are a married couple in which one person is ill and the other is not, you want to make certain both names are on the lifetime tenancy agreement. The last surviving person in the house can remain even if the other part of the couple has moved out to long term or passed on.

A few companies will allow younger individuals to remain in the house. They must be included in the home reversion plan or the additional person will be asked to sign a waiver regarding their rights to occupancy. There can be additional fees for this part of the plan.

Some worries might crop up as you examine home reversion and lifetime mortgages such as property maintenance. While you do need to keep the house up, you are not expected to exceed the current standard your home is in. You are just required to maintain it as it currently stands. Remember to examine the entire lifetime tenancy document and ask questions to avoid any later issues.

What is the Formula to Calculate the Maximum Equity Release?

When most people are considering the possibility of equity release, the question which is most common is what is the highest amount which could possibly be released from their home? People often wonder what is the formula used to calculate a maximum equity release and what are the factors which determine this figure.

The formula for calculating the maximum equity release will depend on the type of scheme which you may be considering. Factors such as gender, age and health will bare a great deal of relevance as a determining consideration for most equity release providers, but there is some variance across different schemes. Many people utilise equity release calculators to find out this information, but you should consider the type of product the tool is basing its calculations on as this could affect the maximum equity release. It is important to understand why the field in the calculator is of importance in order to understand the formula.

Age

The age of the applicants holds great significance to the restrictions on equity release sums. Providers will consider the age of the youngest applicant in order to estimate the potential duration of the loan. This is because there are regulations in place to ensure that no equity release customers leave an excess property debt to their estate. To ensure this, the providers will offer a smaller sum to those applicants who are younger. Equity release schemes will usually have a minimum age of fifty-five but there may not be a maximum age restriction.

Property Value

As with any type of property finance, the provider will need to be assured that there is sufficient equity available in the property. The calculator will use this figure to work out the percentage of available equity which would be reflected as the maximum equity release.

Existing Mortgage

Your current mortgage balance will also affect the amount of equity which is available to be released. Your current mortgage provider will have a claim to part of the value of your property until the balance has been fully paid off.

Gender

This is used to calculate the potential duration of the equity release scheme, since males and females have different typical life expectancies.

Health

There are a number of providers offering enhanced or impaired life equity release or home reversion plans. These types of plans require information about your health and lifestyle to determine the maximum equity release. It is important to answer the questions as honestly as possible as some providers will offer a larger sum than would normally be received since the enhanced rate will allow for a greater percentage of equity to be released. Typically, the formula used by the equity release calculator will assume that a history of poor health will denote a shorter potential lifespan against those in good health.

The specific questions asked regarding health and lifestyle may vary according to the specific provider. They may ask a series of questions based on your medical history, any current medical conditions and the current severity of symptoms to calculate the maximum equity release that you would be offered. Generally, if you happen to experience severe forms of health problems, then you are likely to benefit from a higher release when compared to someone of the same age but in good health. Those who are older and in poor health will be offered a far higher rate of maximum release compared to those who are younger and in great health.

Other Pertinent Questions

Some providers or calculators may ask any number of other questions. It is important to supply as much accurate information as possible. This will ensure that the formula can calculate an accurate illustration of the schemes and products which would be best suited to your needs. Even questions which appear irrelevant will have some bearing to allow the formula to gain a better insight into your estimated lifespan. Since lifetime mortgages and other equity release products are designed to be for the remainder of your lifespan, the formula must determine as accurate an estimation as is possible to ensure that both you and the provider are happy with the outcome. This will create a maximum equity release figure which fits the loan to value scale as specified by the company or provider.

Equity release calculators can be an excellent way to navigate through the complex formula to calculate the maximum equity release available. They can help home owners to gain some figures and data which will enable them to make an informed choice as to whether they would like to proceed. However, you must remember that it is important to consult with a professional equity release adviser to be assured of getting the best deal and making the right decision for you.

Choosing the Best Equity Release

Making a decision to join the equity release schemes route to improve cash flow is just the beginning of many more retirement decisions to be made. The question then arises, which equity release scheme to choose? Two major equity release schemes exist; however, there are still decisions to be made before settling for the one that bests suits an individual.

Lifetime mortgage schemes involve taking a loan against the value of one’s property, without worrying about repaying the loan immediately. The repayment of the loan is effected upon death, sale of the property or a permanent move out of the property by the homeowner. Even after settling for this type of scheme, one still has to decide which equity release out of the whole of the equity release market to choose.

A choice still has to be made whether to choose the roll-up interest scheme whereby interest is rolled up and added to the principal debt, thereby increasing it. Alternatively, there is the ordinary interest only lifetime mortgage scheme whereby one pays the interest monthly to keep the principal debt fixed, or lastly, the fixed repayment lifetime mortgage whereby you do not pay the interest, but parties agree beforehand to a fixed amount to be repaid which is quite high. It is therefore important to determine which equity release to choose by looking at how to repay the interest accumulated through the loan.

Two additional products have entered the market recently with regards to lifetime mortgages. Both require the interest to accrue over time like the roll-up option. However, they are different in other ways. First you have the drawdown scheme in which you take a smaller lump sum initially and leave a larger equity release amount in a specified account. This account can be drawn on at any time throughout your life. You only pay interest on the money taken from the account rather than the full equity available to you to use.

Next is the enhanced lifetime mortgage. This mortgage is for a specific set of circumstances regarding health. You fill out a health questionnaire so that the provider can determine if you have an illness or disorder that may reduce your longevity. Cancer, Aids/HIV, obesity, heart disease, smoking, drinking, and other health related issues may qualify for the enhanced lifetime mortgage. You receive a larger lump sum at the outset than all other lifetime mortgages on the assumption you will not be around for as long as the average person in retirement.

If it is the home reversion plan that one chooses, one still has to contend with the pros and cons of this specific type of equity release scheme. For example, it is an advantage that you do not have to make any monthly repayments even for interest. In fact there is no repayment. Instead, you sell a part of your home. You could sell the entire home if you wish. Since there is a sale of property which is recognised in the land registry you owe no money or interest. It is of high importance to consider your age in determining which equity release to choose, as the home reversion plan pays out more the older you are. In fact, the minimum age is 65 but the better terms are experienced over age 70. Once one has signed up for a home reversion plan, it is not easy to cancel it, although you still have portability and the option to borrow additional funds if required.

Portability is something lifetime mortgages offer in that you can take your loan with you if you move to a new home. If that home has more equity you can also borrow more in a lifetime mortgage release. For home reversion you can take the money you earn from the sale to a new home and even enter into a new home reversion if you own that home, where you gain a new lifetime tenancy agreement. A main difference other than the structure of the packages for home reversion and lifetime mortgages is age. You can be 55 years of age to take out a lifetime equity release mortgage.

With so many choices out there, it is imperative to apply caution and due care in determining which equity release to choose. One cannot blindly sign up for one, without possibly incurring much future regret. So employ the professional services of an equity release mortgage adviser to find which equity release deal is best for you, and not least your children.

All about Equity Release Schemes

Difficult times, emergency situations and unforeseen circumstances come upon us all. In most instances when this happens, we are in a situation of being cash poor and property rich; well, at least for the older and more settled members of society that is. Equity release schemes are a practical solution for homeowners to maintain a constant cash flow, without the encumbrance of having to pay tax for it. It is a great way of raising an income to spend as the need arises. With equity releases, you only release the equity and continue to live in your home.

Equity release schemes are a practical solution to be considered by many who find their own investments tied up in property, yet they find themselves without cash to spend. Mostly, the older people are full homeowners of their properties and do qualify for equity release plans. The scheme allows you to turn some of the equity in your home into cash.

Two types of equity release schemes are common. Lifetime mortgage is one of them. It allows you to borrow money without having to worry about repaying the loan. The lender does not own your property and you continue living in your home. The lifetime mortgage is only paid off when you sell the property, move out of the property permanently or die.

The other type of equity release is the home reversion scheme, which allows the home owner to sell a percentage of his or her home. The home owner continues to live in the home and upon selling the property or death the percentage sold will then go to the home reversion company and the remainder to the homeowner’s estate.

Exploring Lifetime Mortgages in Detail
There are currently five products on the market under lifetime mortgage, they can be found here. You have to qualify for this mortgage based on age and quality of your home. Your home needs to have at least £70,000 in value and you have to be at least 55 years old. Each will be discussed for their main quality:

•    Roll-up mortgage is a type of lifetime guarantee where you take a lump sum of cash. You have compounding interest that accrues until the loan is repaid.
•    Fixed lifetime mortgage is a special product in which owner and provider decide upon a specific amount of interest before the plan begins. This provides a set balance and interest to be repaid at time of death or move.
•    Drawdown mortgages give you a smaller lump sum than the other two listed above. This lump sum helps you initially, but leaves more equity in your account to be drawn on when needed. You can take as much of what is available as you need. You only accrue interest on the amount you use rather than the full amount available in your equity account.
•    Interest only lifetime mortgages are the only type which requires you to make a monthly repayment. Actually it is a monthly interest payment, where you have the original borrowed amount left unpaid until the end of the agreement.
•    Enhanced lifetime equity releases are special products for those with an illness that will reduce their life expectancy. It is awarded based on a health questionnaire in which you gain a larger lump sum than all other options. You still accrue interest until the end of the agreement.

Exploring the Differences in Home Reversion
Home reversion is not a loan and you must be 65 years old to take out this product. For the sale of your entire home or just a portion of it, you receive cash. This cash can be used in any way just as the lifetime mortgages. You can sell more of your home when you need more cash. The important detail about this option is the lifetime tenancy agreement. This agreement ensures free rent for life in your home. For some the burden of paying a mortgage off even in death through the sale of their home is too much. To alleviate this concern providers created the home reversion concept that can also protect your beneficiaries’ inheritance simply by keeping a portion of the home unsold.

As good as equity release schemes sound, it is important for one to consider the consequences carefully before committing to them. Once committed, one will no longer be able to bequeath all their estate and property to members of the family upon death. It is also important to choose an equity release scheme which better suits your needs. Wisdom is important when it comes to these plans.

Business Needs to Take Note of the New Equity Release Schemes in Town

Making money from any business isn't easy unless and until you keep yourself updated with the latest trends and nuances in your field of business. Any business dealing in equity release schemes must take note of all the new equity release schemes in town. The updated information about the new equity schemes and their features can help you as a business to compete the market better than your competitors. In turn this will enable a flux of customers to service and profit from. So how do you tell consumers which equity release schemes are best? We recommend visiting AskEquityRelease.com.

Customers prefer only those equity release providers who have the latest offerings in the market so that the customer could be assured of getting only the best featured products. Everyone tries to minimise their risk in whatever they do and customers aren't an exception to it. You need to know all the 'ins and outs' of the market so that you are never left untouched with the dynamics of the market. This can make the difference in profitability and help build a business to sustain and survive through tough competitive markets.

The things could have been easier, if you had a monopoly but competition is a reality and you have to take it as a challenge. Every customer wants nothing less than the best for themselves and if you are aware of the upsurge in new equity release business written, then only you can expect yourself to be over and above your competitors. You can help your customers to decide which equity release schemes are best for them.

You can also guide the customers about the tables such as Compare Equity Release Schemes and let them understand the benefits that they could derive by using it. Your customers should know that you have some of the best resources and they can access those resources only through you. Competition is tough and it is your updated information and knowledge about the latest happenings that could make you stand apart from your competitors.

As a good business, you can suggest your customers to browse the best deals for themselves; this will lead to them finding out for themselves which equity release schemes are best. After all, this single decision is responsible for shaping their future life after retirement; therefore it must be taken seriously not only by them but also by you as a successful profitable business. The success and profitability of any good and sustainable business is directly dependent on the profitability of the customers. The more you can offer them; the better is your performance.

You may even want to send them to competitor sites or comparison sites so they can make a clear decision on which equity release schemes are best. By offering up such details for your consumers and different resources, they will have faith in you. They will understand that you wish to get their business and you are not going to hide the truth from them.

The truth is another company might have a more affordable package. They may have a better interest plan. But is that other company going to have the service the consumer wants? The thing is a great product is helpful, but so is to know you can trust the person giving you the financial package.

A consumer has been around the block by the time they make it to retirement. They are more than aware some products are defective. They also know that something that sounds really great can be really bad for them. This is why they look for customer service too. By offering up an honest and fair trade policy you could convince your consumer that you do have the best equity release scheme for them.

As you think about these different concepts including the updates to the markets that your competitors have, also think about how you can make your site better for the consumer. It is good business to have a variety of tools available. Even if another site has a similar tool, you should still offer what the consumer is going to find convenient. This might mean using a calculator that shows how affordable the lifetime mortgage is for them.

You can also offer up recent information for homes that you completed mortgages on. You do not have to supply details, but you could show the calculations and how you arrived at the lump sum or payments you provided to the person. This helps show the consumer which equity release schemes are best because they have a real life example.

Protecting Your Inheritance with an Interest Only Equity Release Scheme

In our current economic climate, many pensioners are in need of more than one source of income. Their pension plan or retirement funds are no longer sufficient to meet their daily needs. An interest only lifetime mortgage plan is a simple way for pensioners to obtain additional capital which can maybe also be used to provide income if required. An interest only mortgage plan is available to people who are above age fifty-five.

The advantage of an interest only lifetime mortgage is that it helps to protect your inheritance. If you want to pass on your property to your children or grandchildren, but at the same time you want to release equity from your property while you are still alive, an interest only lifetime release is the best option for you.

So how exactly does an interest only lifetime mortgage help you to protect your inheritance?
Other equity release schemes allow you to borrow without having to make any monthly repayments. Eventually, you will have a large amount that you will need to repay because you will have to repay your initial loan amount and the compounded interest amount. In many cases, if you have longevity, the amount that you will have to repay could be as large as the value of the property. Once you sell the property and deduct the amount that needs to be repaid, you will not have much to pass on to your children or grandchildren.

However, if you opt for an interest only lifetime mortgage, you will have to pay the interest amount during the duration of the mortgage. The initial loan amount does not decrease nor increase. It stays the same. Eventually, you will only need to repay the initial loan amount. If it is necessary for the property to be sold to repay the initial loan amount, depending upon how much you originally borrowed will determine how much of your property value will pass on to your children and grandchildren. Most lenders do not allow you to borrow more than fifty percent of your property’s value.

Benefits Highlighted for Interest Only Plans
•  You pay interest as it accrues; therefore, you add nothing to the lump sum you borrowed.
•  You will have to pay the lump sum back at the end of the agreement which is at your death or when you move to a new home.
•  Some schemes can follow you to a new home if you downsize or change property.
•  If you move to a retirement home the lump sum has to be repaid.
•  You may need to sell your home to make this happen.
•  Your children and family are more likely to gain an inheritance.

There are always going to be downsides to any mortgage. You have to be ready for these before you sign on the dotted line. The first thing to consider is your longevity. Are you really going to live for 20 or 40 years after you retire? It would depend on what age you have retired now. You may very well live longer than you expect. If you use up the money in your equity now, what will you have for later?

Also as you look at the different packages, consider if the pension you receive is enough or if it too will be gone. Do you have family that can help you pay for long term care if your money runs out? Are there places that will take you if you have no money left and need nursing care? Make sure you choose a plan that you can afford.

One of the biggest issues with the interest only mortgage is having to pay a monthly amount. This could eat up your cash available faster. All in all, you have plenty of different schemes to choose from and interest only is just one of them. You may find a different lifetime mortgage or home reversion option is better. Allow yourself to find out before you commit to just one product.
Also take a look at different companies offering the interest only product. Each has their own special product that could be better for you than another company.

The Stonehaven Interest Select plan is a prime example of the interest only equity release scheme that allows you to protect your inheritance. With their inheritance protection features and fixed interest rate for life, Stonehaven are leading the way in the interest only lifetime mortgage market. Consider all your avenues as you search for the best retirement funding.

Equity Release Schemes - Key Retirement Solutions

If you are a pensioner and you are looking for the key retirement solutions, then equity release might be what you are looking for. Equity release applies to home owners who are looking for a way to release equity from their homes. There are many different equity release schemes. Based on the scheme that you choose, you can either receive lump sum cash or you can receive a series of payments via drawdown.

In most cases, equity release involves taking a loan against a property. Unlike other loans, equity release does not require any monthly repayments. The money that you receive can be spent however you would like to spend it. One of the greatest advantages of equity release is that you can stay in your home as long as you like and retain 100% ownership of the property. Although there is one solution that requires you to sell your home, which is the home reversion plan - for further information on home reversions visit www.RetirementMortgages.org.uk.

When applying for equity release, each equity release scheme can be customized to meet your needs. The disadvantage however is that an equity release scheme will eventually decrease the value of your property. However, this can be offset somewhat by any potential increase in the value of your property. Basically what this means is that you will not have as much equity in your home to take out in your later years when you have a customised option. Yet with the increase in property value your home could actually increase in value enough to extend your equity a little further. The most important thing is for you to look at key retirement solutions for the best one regarding your circumstances.

A person must be at least fifty-five years old in order to apply or an equity release scheme. You need to own a property that should have a value of at least fifty thousand pounds. If possible, there should not be an existing mortgage on the property. If there is an existing mortgage on the property, it will need to be paid off by the equity release scheme at completion. If you decide on a home reversion plan you will need to be 65 years of age.

The three main types of equity release schemes include: the lifetime mortgages, the interest only lifetime mortgages, and the home reversion plans. Each plan allows you to release cash from your own home. The lifetime mortgages allow you to take a loan against the property, while the home reversion plan gives you the opportunity to sell a percentage of your property. In both cases, you can remain in your property as long as you like.

A nice thing about the home reversion plan is that you can sell as much of the property as you want, but you live there rent free. You will have a lifetime tenancy agreement for you and anyone over 65 named in the contract. This means your spouse, if they live longer than you, can remain in the house. Additionally, you have more property to sell if you need more cash without the worry of interest payments or paying back the principle of the mortgage.

Lifetime mortgages as key retirement solutions require a repayment of the loan and the interest. It can mean the sale of your home with little to no inheritance for your family after you are gone. This is certainly something to compare between the three plans in discussion.

Keep in mind also that while you have an interest only plan where you make interest payments, but keep the principle balance on hold till the end that you need a sizable disposable income to cover those payments.

Many pensioners are sceptical about equity release due to previous adverse commentary; however the fact is that they do not need to worry. The Financial Services Authority guarantees pensioners their safety. In 1991, Safe Home Income Plans also known as SHIP was established to provide home owners with the assurance that they need thus allowing them to apply for equity release.

So if you feel like most that life is for living and you have already discussed equity release with your children, then go ahead and 'live a little'. Always remember that you can compare key retirement solutions for the best option. You do not have to choose one within a certain timeframe either. Just go at your own place to get the best product. You have plenty of different products some of which are not mentioned, but they may be more key for your retirement needs versus those that are.

Choosing the Right Equity Release Scheme

The world of finance can become increasingly difficult to navigate, especially as a couple or individual grows older. With age often comes significant financial and family decisions, one of these decisions often revolves around the idea of taking part in an equity release scheme. There are several schemes available, all of which require careful thought and consideration in determining, which if any, is right for the specific case at hand. For this purpose you will want to discover the best equity release schemes for your current situation.

Home equity release from EquityReleases.com allows a homeowner to earn income off of the equity that has already been invested in their home. This is often perfect for seniors who are looking for a larger monthly income or cash flow. Many seniors decide to take part in a home equity release scheme so that they can spend their retirement more comfortably, or so they can help their children in some way.

There are currently two main types of equity release schemes. These are home reversion plans and lifetime mortgages. With a home reversion plan, the homeowner sells part or all of their property. In return they receive a lump sum of money with which to live and they are allowed to stay in the property for the remainder of their lifetime without having to pay any rent. With a lifetime mortgage arrangement, the homeowner takes out a loan against the value of their property. They then can choose whether or not they want to make monthly payments on the interest incurred.

The best equity release schemes vary with each family, couple, or individual. Most seniors must consider several factors when deciding on the perfect scheme. One factor that is often considered is that of the well-being of their children, both presently and in the future.

It is important for parents to take into account what will happen with their home once they have passed away or relinquished their property to the home equity release scheme. By taking part in a scheme, most homeowners are exhausting the potential to pass equity on to their loved ones. On the other hand, by having more cash on hand in the present day, many seniors are able to help their children through the recession or may even be able to help them purchase their own home.

To help you decide on the best equity release schemes for you and your situation, it is important to have more details than those in the introduction.

Details for Equity Release
One of the main differences between home reversion and lifetime mortgage is the age difference. You need to be at least 65 to take out a home reversion plan, but lifetime mortgages can start a decade earlier.

Since there is an issue of leaving behind an inheritance you will want to look at home reversion and interest only lifetime mortgage. Comparing these two products will show you the potential choices that will allow for inheritance to be left more so than any other option on the market.

For example drawdown mortgages (found here) are a lifetime mortgage option where you can take out a lump sum from the provider and then withdraw instalments as you need them. You only pay interest on the amount you withdraw. The interest is compounded onto your account until you pay back the loan. Since it adds up and you could live longer than expected you may end up spending the inheritance you meant to leave behind.

Enhanced lifetime mortgages are a specialty product. They do not work for everyone and in fact cannot be called the best equity release schemes. It is for a person that may have an illness or disorder. There may be something like smoking, obesity, diabetes, cancer, or another type of issue that could decrease your living to a very old age. If there is you could get a larger lump sum of money from an equity release scheme.

As you can see there are definitely different options available to you. It is up to you to choose what you feel is going to be the better choice. You also want to speak with your family to assure yourself they understand what is going on. Your family may prefer a different option. They may want to help you out. On the other hand they may think it is the greatest idea.

Regardless of the path chosen, or the best equity release schemes picked, it is crucial that homeowners do sufficient and extensive research into which scheme is best for them and their financial situation.

Debt Consolidation Using Equity Release Schemes

Many a time, people get to their retirement age straddled by debts stretching from loans, credit cards and other regular financial commitments. It is always distressing because this is a time when you fear these debts will eat into your pension and you will have less income to meet these liabilities. After retirement, the best thing you can do is to relax and enjoy life without any financial stress because life already may have been hard work in even reaching retirement age, so the last thing you wish for is the stress to continue. You have options like debt consolidation and equity release schemes.

If by chance you happen to be crushed by bad debts, the good news is that there are debt consolidation options from a number of sources. You can consider equity release schemes which enable you to enjoy a life without financial worries & further monthly repayments. Having attained a minimum age of 55 years and above and owning a valuable property, you can use the option of taking out an equity release plan to secure finance in order to repay these debts once and for all. Whatever plan you choose, you must ensure that you do it carefully because of the different characteristics that they exhibit.

Acquiring funding through equity release can be a great way to relieve you of your debts because the same loan will be used to offset other outstanding credit cards etc. If your home is highly valued, there is no doubt you may still have more money left to spend into your retirement without worrying about losing pension. It all depends on how much equity you can release. This will depend on your age at the time and the surveyors report on the condition and value of the property.

Unless your debt is too high, the amount taken as lump sum will be enough to alleviate your financial woes. There are repercussions however; your inheritance plans will be hampered unless you have other plans to settle beneficiaries in other ways. The home equity loan plan is only suited for persons who possess their own property and they may use the money to develop the other assets for their own benefit.

Equity release is not the only way to debt consolidation. There are other ways which are applicable for example persons who are far away from attaining the age of securing an equity release. Financial advisors are available to give relevant advice based on income and the nature of debts owed. They will always come up with a financial solution tailored to your particular situation, needs and wants.

Loans can be attained that you make monthly payments on. These loans may not have collateral, but they will definitely use your pension. If you do not have enough pension to pay your daily living then something like a personal consolidation loan is going to create more problems than they solve.

As you consider the variety of options open to you, consider what is best. Speak with your family. Your family should be a part of a major financial decision that could affect them after you pass on or move to a retirement home. At the very least your family might lose their inheritance if you make the wrong choice. If you do not ensure there is some protection they may be responsible for your debt.

Lifetime mortgage schemes can come with a negative equity clause. This clause protects your family from owing money if the home value is lower than the amount you owe on the loan. It might not save the inheritance, but it does save from more burdens.

Home reversion is another choice. Home reversion is the sale of your home. With that money you could pay off your debts. You might not own your home anymore, but you also do not need debt consolidation. You are paying off the debts you have by the money you receive. This only works if you have enough value in your home to live on and pay off the debts.

Make certain you speak with a financial adviser before you make the ultimate decision on what you wish to do for your debts. An expert in financial markets should have an understanding of equity releases and debt consolidation. They should be able to help you understand some of the benefits and disadvantages you might face. You certainly do not want to end up owing more as you are about to enter a retirement home. The only option at this point would be a life insurance policy that can pay the debt after you are gone.

For further independent financial advice visit - www.EquityReleaseAdvice.com

Determining Which Equity Release Plan is the Right One

People who are considering equity release can choose from three main equity release schemes. These include the lifetime mortgage, the interest only lifetime mortgage and the home reversion plan. In order to determine which equity release plan is the right one for you, you need to know the difference between each plan.

The home reversion plan allows homeowners to sell all or a part of their home to a home reversion company at a discounted price. This price is normally between 20 – 60% of the current market value of the property. By signing a document called a lifetime lease, you will be legally allowed to remain in the property until your death or the death of your spouse. During this time, you will not be required to pay rent but you will still be responsible for taking care of the property and making sure it remains in good condition.
Once you die, your property will be sold and the home reversion company will receive its share. If you sold all of the property, all of the sales proceeds will go to the home reversion company. If you sold only a percentage of the property, the home reversion company will receive only a percentage of the sales proceeds.

Lifetime mortgages do not involve the selling of the property. Instead, you are allowed to use the property to obtain a loan which requires repayments only if you or your spouse dies. Most lifetime mortgages with the exception of interest only lifetime mortgages accumulate the interests which are repaid once the property is sold. In most cases, the interest charges are compound interest which simply means that you will be paying interest on top of interest. You will remain the owner of your property until your death and will be allowed to live in your property as long as you like. Most lifetime mortgages offer what is known as a no negative equity guarantee which simply means that the amount borrowed and the accumulated interest can never exceed the value of the property which means that you will never have to repay more than what you have.
 
The interest only lifetime mortgage is similar to other lifetime mortgages with the exception that you are required to make monthly repayments of the interest amount. This means that eventually only the amount borrowed will have to be repaid. Interest payments will continue for the life of the loan. This is because the principle will always remain outstanding until you sell the house or if you die in which case the house is sold so the payment can be made.

Which equity release plan you are interested in will determine what a financial adviser will talk to you about. You should always ask about the different products and what might be new to the market. For example enhanced lifetime mortgages are newer than all others.
This enhanced mortgage is meant for those who have an illness that could affect your life expectancy. You are able to get a larger lump sum because of this.

Besides the regular lifetime mortgage, interest only, and enhanced special mortgage, you have a drawdown mortgage option. The drawdown mortgage does not give you a lump sum and end the payments. Instead, you get a smaller lump sum and then you can take instalments.

The instalments you take are up to you. As long as you do not take the full amount available to you then you will not pay interest on it. You see you only pay interest on the amount of money you actually use. This can save you from using all the equity in your home and perhaps keep something for your beneficiaries.

There are only two plans that truly guarantee a lump sum for your beneficiaries. The interest only loan because you take out only a portion of money from the equity and not the full amount. You make payments keeping the principle from ballooning unlike it can with the regular lifetime mortgage options. Home reversion is the other option that nearly guarantees your family inheritance. This is because you do not have to sell the entire home, but a portion of it. The cash is also yours and not from a loan.

Each equity release plan vary which means that you will need to do sufficient research to make sure that you fully understand the details of each plan to pick which equity release plan is best for you. If you want to be sure that you are choosing the best plan, you may want to hire an independent financial adviser or visit www.EquityReview.com for free professional advice.

How to Determine the Best Equity Release Schemes

Equity release is a term that retired homeowners who are in need of an additional source of income, or capital should be aware of. Retired homeowners are now given the opportunity by equity release providers to release equity from their homes. Homeowners who are interested in equity release can choose from a number of products now on the market. The question becomes how to ascertain which will be the best equity release schemes for your individual need.

A homeowner who does not want to sell his home can choose a lifetime mortgage which allows them to obtain a home equity loan from an equity release provider by using his home as collateral. In order to be eligible for a lifetime mortgage, the homeowner must be of a certain age. In most cases, they must be older than fifty-five years of age. They must also be the owner of a property that is worth at least seventy thousand pounds. Homeowners are never allowed to borrow more than the value of their property. They are also not allowed to borrow an amount that is equivalent to their property’s worth. The reason for this is simple - inheritance.

There is also the need for profit on the behalf of the provider. If you borrow what the home is worth, then there is a potential for the interest to exceed what the home is worth. Since you make no payments it generally puts no profit in for the provider.

In order for a lifetime mortgage to be repaid, the property will have to be sold. This normally happens when the homeowner dies or is no longer capable of remaining in the property. If the amount borrowed is higher than the value of the property, the sales proceeds from selling the property will not be sufficient to repay the equity release provider. The amount borrowed cannot be the same as the value of the property because of compounding interest. The sales proceeds from the property are not only used to repay the loan but it is also used to pay the accumulated interest. This does not apply to an interest only lifetime mortgage as the balance remains the same.

The difference between an interest only lifetime mortgage and a lifetime mortgage is that the interest only lifetime mortgage allows the homeowner to pay the interest amounts on a monthly basis. This means that the sale proceeds from the property will only be needed to repay the initial loan sum which means that the amount remaining can be left as an inheritance for the children of the homeowner.

There are four lifetime mortgage choices available to you today. These can change as the market changes. You know of the main lifetime mortgage and interest only option. A third is the drawdown mortgage. This gives you a lump sum in a smaller amount and then instalments for the rest of your life as needed. You pay interest only on the amount you remove from your equity account. It can help you save a little money for family and at least the interest does not add up as fast as some of the other schemes.

Home reversion plans are also common among retired homeowners. In exchange for an additional source of income during their retirement, they sell a part or all of their property. They are however allowed to remain in their property until they die or move out. Home reversion plans are not as common these days as the guilt of selling part of your house to the reversion provide casts a shadow over taking one of these schemes out.

For home reversion plans you need to be 65 years of age. You can always sell your home in parts when you go with this option. For example if you sell a small part at age 65, you could sell another in ten years when you need more money. This at least provides you with options. It also determines the amount of inheritance you leave. Since you do not have to sell the entire home, you could leave inheritance behind.

As you look for best equity release schemes, you need to compare the different products. After all if you are comparing products and providers you can find the best one for you. Sometimes you might find a product that looks right for you but it turns out to be less than you hoped for after talking with a financial adviser. You certainly do not want to feel guilt from making the wrong decision, so keep your family apprised of your choices and speak with a financial adviser which can be found at EquityReleaseHome.com.

What Are The Typical Costs to Set Up an Equity Release Mortgage?

For many people, an equity release mortgage is a good solution to cash flow issues later in life. This kind of financial scheme allows you to stake your valuable assets – such as your property – to secure a loan, and to retain use of these in your everyday life as well. It is a financial scheme with a lot of legal jargon and concerns. Before taking out an equity release mortgage you want to make sure you have a solicitor in your corner. Solicitors who are members of ERSA should be compared to find the one that will be most helpful to you.

There are several varieties of equity release schemes; some involve simply taking out a loan, while in others, the third party actually buys your property from you and delivers payments in small chunks that are deposited monthly and which become your regular income.

If you are keen to take on this kind of scheme, you will want to ensure that you have plenty of advice and support in order to make sure that you avoid hidden costs and get the best possible deal. Solicitors who are members of ERSA will be able to help you here.
This kind of legal professional specialises in equity release law. As a result, he or she will be able to point out all the costs to you, and to assess your situation accurately in order to recommend the best product for your requirements.

Exploring Equity Release Schemes for Costs
Your first decision will need to be what type of equity release scheme fits your needs. Without an understanding of the products available it will be difficult to discuss the costs you may incur.

You have home reversion which is not a mortgage but a sale of your home. You must own your home in full and be 65 years of age. You sell the entire home or just a portion of it as a means of getting money for your retirement. There are no repayments necessary in this scheme and no interest to accrue. This is because the money is yours for the sale. Home reversion is a tax free option; therefore, you do not need to worry about capital gains tax from the home sale. However, there are solicitor fees, provider fees, underwriting fees, and closing costs associated with home reversion plans.

Lifetime mortgages are provided in four different products in the UK. The market can change and products have been known to come and go. Right now you have roll-up, drawdown, interest-only, and enhanced lifetime mortgages available to you. Each has its own unique options for payments, repayments and compounding interest which can determine some of the fees you will see.

First lifetime mortgages are loans. You will see closing costs, underwriting fees, provider fees, and solicitor fees. These costs are generally required upfront; however, select providers will include the fees into your loan for repayment later or at the end of your mortgage term. Interest-only lifetime mortgage is the only loan in which you can make monthly payments, reducing the amount owed at the end of the mortgage agreement. The end of the agreement is usually at your death or on the sale of your home when you decide to move into a nursing home or other care facility.

Like home reversion, lifetime mortgages offer tax free money when you take out the loan. This saves you from capital gains taxes whether you use a lump sum or drawdown scheme in which you take money as you need it.

Hidden fees have been known to be applied by some providers that are less than reputable. It is imperative that you look for a member of the SHIP (Safe Home Income Plans) programme. Members of this organisation are highly regulated.

Additionally you want a negative equity clause in your equity release mortgage contract. This will help your beneficiaries and family avoid unforeseen charges. Home values change, sometimes lowering. They could lower enough on your home that even with the sale your home does not pay the entire lifetime mortgage amount with interest. A negative equity clause ensures your family does not have to pay the difference. It is a good idea to speak with your family before you enter into an agreement too.

Equity release schemes are useful; however, they can also be fraught with hidden expenses. In order to help you to make sure that you navigate these successfully, it is a good idea to hire legal professionals such as solicitors who are members of ERSA with specialist knowledge of this field.

An Equity Release Calculator Can be so Helpful

The definition of 'Equity' is the value of the home minus any outstanding charges or mortgages secured against the property. The equity you retain in your home is often considered to be tied up and constrained, in the sense it is unavailable to utilise. When you need to know ‘how much can I borrow’ remember that it is dependent on the market and your homeownership situation. The theory for many homeowners is that you are unable to access it without selling your property.

Using an equity release scheme, an individual can unlock some of this equity in order to gain a lump sum of money or ongoing financial income from their property. Equity mortgages are available to anyone as long as you want to pay a monthly payment that pays for the compounding interest and principle balance, until it is all paid for. However, what can you do when you are in retirement and still need money, but lack the means to pay monthly payments?

If you are reaching retirement age or even in retirement age and you are thinking about ways to improve your financial standing, or perhaps would benefit from a large lump sum of money, then you may ask yourself how much can I borrow from a lifetime mortgage or home reversion equity release scheme?

The answer to this scenario is by using the latest online equity release tools which are now provided for the benefit of potential equity release customers. The good news is there are solutions even for those in retirement or aged 55 plus. The feature of many newer equity release websites is the provision of an online equity release calculator which answers the question directly as to how much can I borrow from my property. The calculation process should be straight forward and provide the figure for the maximum equity release availability in the market. Look for a lifetime mortgage calculator if home reversion schemes are not suitable for you.

Better lifetime mortgage calculators from companies such as Compare Equity Release.com will also offer results for an enhanced lifetime mortgage. These schemes will offer bigger lump sums due to medical underwriting due to the applicant(s) having ill-health. Additionally, Compare Equity Release.com has a further interest only lifetime mortgage calculator. This is helpful should you not wish for the interest to roll-up and are quite happy to make monthly payments of interest only. The answer therefore is to shop around in terms of how much can I borrow.

The great thing about these equity release calculators is that you can find out how much equity you would be able to release from your home without actually signing any contracts or taking on any commitment. They should be free to use and you should not have to give too many personal details in order to reach a conclusion. The whole concept of these calculators is to provide a ball-park figure as to the maximum equity release.

Each company is different with the amount they are willing to offer you in a retirement equity release scheme. Some companies will only supply 20% to 44% of your home equity in a lifetime mortgage, whereas others might offer up to 70%. It is dependent on a number of factors such as your health, age, and home value. If there is a potential for your home value to increase and your health is not offering a long life expectancy you may see a higher lump sum provided under the enhanced equity release scheme.

For lifetime mortgages you can be 55 plus, as long as you are not beyond 80 years of age (according to most providers). Home reversion where you sell a bit of your home for money requires you to be 65 plus. You also have to sell the rest of your home when you move or your family will after your death. Home reversion does not have interest, monthly payment, or any repayment which can be more affordable for some retirees. You and your family should consult the equity release calculators to determine the scheme that is most beneficial and payment friendly.

If you are currently reviewing which is the best equity release schemes then it is advisable to use such an online equity release mortgage calculator to gauge both your eligibility and also how much can I borrow and benefit from. This knowledge, combined with professional and independent financial advice, will help make the equity release decision process easier. Call 0800 678 5169 to speak to an equity release adviser.

How does SHIP (Safe Home Income Plans) Provide Protection to Equity Release Customers?

Safe Home Income Plans (SHIP) are one way of protecting equity release customers. The SHIP code of conduct means that any organisation that works with SHIP in offering equity release schemes must abide by a series of rules which ultimately protect equity release customers. Therefore for any individual or couple who are considering committing to an equity release scheme, it is important they deal with scheme providers who abide by these rules.

Equity release allows people to access some of the equity within their homes without having to sell their property. This is ideal for retired people who wish to have access to some of their equity and yet retain their own property.

A key part of the SHIP rules state that home owners must have a lifetime residence guarantee for their property. This gives the customer the peace of mind that they will always have a roof over their heads.

This rule works in two ways and is based on the equity release plan the homeowner takes out. A home reversion is a sale of part of or your entire home. Typically when a house is sold you move out. Under home reversion you are given a lifetime tenancy agreement which includes any person living in your home that is named in the home reversion contract.

Unfortunately anyone not 65 or older living in the home may not be included. A person that is still young such as children you have living with you will not be included either. The good news is the tenancy agreement requires no rental payment. You live rent free until you decide to move to a nursing home/care facility or upon your death.

For lifetime mortgage releases the SHIP code of conduct ensures you can remain in the home until you decide to move or your death occurs. It means even if there is a negative equity situation or you live beyond your life expectancy the provider cannot demand you move out, sell the home and repay the mortgage. Only if there is a clause in the contract stating a specific period of time like 5 years on the mortgage for repayment will you need to find the funds to repay the mortgage or sell the property. At this point any value in the home that is left can be used to move to a new location or into a care facility.

The criteria laid down by SHIP also stipulate that providers must be completely open, clear and honest about their contracts. The contract must allow the home owner to change property to another suitable property without any financial penalty being imposed.

This does not mean penalties do not exist in the contract. SHIP does allow for early repayment penalties. If you pay off the loan within a certain period of time you may have to pay a penalty along with the amount owed. If you transfer the mortgage to a new property this avoids the penalty fee.

Perhaps the most important part of the SHIP Code of Conduct in the current depressing housing market is that customers are protected by a 'no negative equity' guarantee which means that even if the property price slumps, a customer can never owe more than the value of the home.

Negative equity is certainly a worry after the end of the noughties and the beginning of the new decade. The UK saw two recessions which have only started improving recently in reference to the housing market. Quite a few areas are still in a negative equity situation with their homes. Since you have a protective clause on your house, you can feel certain your family will not have added pressures to make a payment to the equity release provider.

Disadvantage of Equity Release
A main disadvantage to the equity release concept is inheritance. While you can be assured of no penalties for moving to a new property, a negative equity clause, and money to live out your retirement, there are issues with leaving cash behind for your relatives and friends. When the home has to be sold to cover the mortgage and there is a negative equity situation, your family receives nothing. If the family cannot pay the loan with other funds but there is no issue of negative equity then they can at least gain a little cash. Unfortunately most schemes mean the family home is sold.

If you are considering an equity release scheme it is advisable to select one which adheres to the SHIP Code of Conduct - These schemes can be accessable here.

Life Insurance protect the Retirement Home Plan Interest Only Lifetime Mortgage

As with any financial commitment, major consideration must always be given to the longevity of the loan, particularly in the case of interest only mortgages for pensioners such as the Halifax Retirement Home Plan. Due to the nature of these plans, the interest only mortgage repayments are set to potentially run beyond the normal 25 year term of a conventional mortgage. Especially given the ages involved here and consideration of the deceased’s family, more thought should be placed upon mortgage protection as health issues are more likely to be prevalent.

However, as with most, there is no insistence placed by the Halifax Retirement Home Plan or from the remaining lifetime mortgage providers that any life cover be taken out. Nevertheless, common sense should prevail and in conjunction with your experienced financial adviser an overall strategy should be put in place. The Halifax Retirement Home Plan is no exception to this rule.

Should a person die on a jointly held mortgage, then the surviving partner still has the interest only mortgage to pay. If they are reliant on their partner’s pensions then this could cause much heartache emotionally and financially, even more so given their long term partner is now deceased.

The Halifax Retirement Home Plan still functions like a normal mortgage. As such, the monthly payments must be maintained otherwise the standard procedures for repossession could be enforced by the lifetime mortgage lender. Herein lies the danger.

But, before applying for a life assurance scheme, questions should initially be asked regarding the financial outcome should you or your partner die: -

Is one of you the main pension income recipient?
If so, how would the survivor manage financially on their remaining income alone?
Will they be in receipt of a percentage of their partner’s pension if widow�s benefits were included? Would they want to stay in the current residence or would they need to downsize to a more manageable property should either person die?


Answering Pertinent Questions
Depending on your answers to the above questions you may find that an assurance policy is not enough to cover the situation you are considering with the Halifax Retirement Home Plan. The interest-only portion of this plan requires monthly payments to be maintained and even with an assurance plan there may not be enough left to cover the person’s expenses after the main pensioner is gone.

Assurance plans need to cover any outstanding debt enabling the person left behind to survive on any retirement income they are able to receive. There is a case in which downsizing and selling the home is the best option for the remaining pensioner. It can be heartbreaking especially if the deceased maintained the property as a family home over several generations.

These little questions and your answers have to be used to determine your most affordable option well before you enter into a retirement plan that is also covered with an assurance policy.

Other Choices for Retirement
While lifetime mortgages are not an option, if you will end up selling the house in the future you may elect for a home reversion plan. In this situation you live in your home rent free until all parties named in the contract die or move to a care facility. This means a married couple over 65 years of age can sell a part or all of their home, to gain retirement funds. You obtain the funds you need to live on, but you have no repayment at the end. There again it does not work for everyone, especially if you want to try to save your home from being sold.

In the event you wish to keep your home, then you need to consider if a term or whole life assurance policy is your best option. A whole life policy has greater monthly payment amounts, but they are fixed to ensure you have the funds you require after the person named becomes deceased. A term policy is for a set period, so it could expire before using it. However, it is the most affordable option.

Your lifetime mortgage adviser should broach these kinds of issues with you to help you think about the different situations you may face. All these scenarios require careful consideration, not only with your partner, but we would suggest the children or beneficiaries should also have an input here. Everyone is going to be affected when the person named in the policy becomes deceased. This is why speaking with financial advisers and your family is imperative before you make a decision.

What are the Benefits of Taking Out Life Cover on an Interest Only Lifetime Mortgage?

Benefits of life cover for interest-only lifetime mortgages exist. It would mainly provide peace of mind, knowing that should the worst happen the mortgage can be repaid in full and thereafter NO monthly mortgage payments are required. The interest only mortgage lenders will let the surviving partner remain in the home for the rest of their life; this is part of the terms and conditions. Therefore, your tenancy cannot be curtailed, nor can you have your house repossessed as long as the monthly mortgage payments are kept up.

The life cover premiums for the over 65’s pro rata will certainly be higher than those of younger applicants. However, given the loan sizes are usually much smaller then the overall cost is marginalised. The payments are usually fixed from inception which is similar to having a fixed rate on the mortgage, in that payments are guaranteed for the duration and you can budget accordingly.

What Types of Life Assurance Plans are Available?
The term of the plan is usually the key here as there are two options in the protection of an interest only lifetime mortgage. As the balance will remain level throughout, some form of protection whereby the life insurance also remains level throughout is therefore recommended.

The best advice in this situation would be to opt for a whole of life assurance policy. This will provide a level amount of life assurance for the rest of your life. Therefore, it has to eventually pay out, once the first person has died.

Post retirement, depending on the amount of life cover required, whole of life policies can prove expensive. You could have the option of a renewable whole of life plan where the cost is kept down initially, but would be subject to a review of premiums in the future. However, to maintain cover, the cost is likely to increase in the future. The other option on review would be to reduce the life cover but maintain the same premium.

A more cost effective proposal would be to consider a level term assurance plan. This wouldn’t be the ‘Rolls Royce’ solution, but could give a temporary reprieve at a time when finances won’t permit or a temporary measure is only required anyway. The level term assurance plan provides a level amount of life cover for a fixed term. As such the premiums are usually lower than the whole of life plan as they will cease at a pre-determined date in the future. There is no savings element; therefore, once the policy has expired there is no cash sum or money to be paid out.

Nevertheless, a term assurance policy does provide a cost effective means of protecting the interest only mortgage & should either party die during its term, then the lifetime mortgage will be repaid in full. This will leave the survivor with no mortgage balance and more importantly no further monthly payments to make to the lender.

As you may already notice there is a disadvantage to the term assurance policy in that someone named in the policy has to die for it to be accessed. When someone lives beyond the expiration date, this can put you back to a troubling situation with your interest-only lifetime mortgage plan.

It does not mean you are out of options. It is quite the opposite since you are in retirement. You can still convert a mortgage as long as you are under 75. This means you could change your interest-only lifetime mortgage to one without an expiration date like a roll-up or drawdown option. In this case interest accrues on the principle, but payment is not due until death. This can save you from having your home repossessed.

The second option is to speak with a home reversion provider or visit this website to see if you have enough value in your home to get the interest only lifetime mortgage principle paid off by selling a piece of your home. You may even have enough to get a lump sum for your retirement. It all depends on the home appraisal and the willingness of the company to offer a good percentage on value.

Assurance policies are certainly an important guarantee whether it is whole life or term to avoid having your home repossessed when a person named in the policy dies. It is worth paying on if you have the funds and wish to protect your home. It should not be your only consideration of course since you may out live the term or whole life policy.

Understanding Some Important Facts About Halifax Equity Release

After retirement, there are many adjustments individuals need to make to their lifestyle. Even though you may get a pension, the amount may not be sufficient enough to meet your monthly expenses. As the bills increase, the money you have seems to decrease. This is especially true given that in May 2011 the level of inflation ran higher than average pay increases. For retirement age individuals solutions do exist such as the Halifax Equity Release.

To overcome financial problems in your golden years, opting for roll-up equity release schemes or interest only lifetime mortgages such as the Halifax equity release scheme could be a wise decision. This particular equity release scheme offers a number of benefits to retired individuals. The size of the benefits can be assessed by use of an interest only mortgage calculator.

The Halifax equity release scheme is basically an interest-only lifetime loan. Your property is the guaranteed asset to the equity release loan provider. This will need to be assessed prior to completion. The condition and property type are an important factor.

With this scheme, you only need to pay the monthly interest. This is paid by direct debit on a date of your choice from your selected bank account. Once the property is eventually sold there is no need to make any further payments as the proceeds are primarily used to pay off the pensioner mortgage with the balance passing to the beneficiaries of choice.

Before you opt for an interest only mortgage, there are some eligibility criteria you need to fulfil. You should be above 65, however discretion is provided to people over 55 as long as they are fully retired and have a retirement income to support the proposed mortgage. Therefore, it is a pre requisite that both parties must be retired and must own their main residence.

With a Halifax lifetime mortgage scheme you can increase your income after retirement. As the money released from this plan is not taxable, you can spend it any way you want. This way, you can have peace of mind and enjoy your retirement without any financial worry. Always be aware though the potential effect any cash released could have on any means tested benefits.

While the Halifax equity release sounds great this does not mean it is without disadvantages. There are quite a few that could definitely affect you and your beneficiaries at a later date. While it is true you obtain tax free cash that is not subject to any capital gains taxation on your income taxes, you may use up quite a bit of this cash without a true means of paying it off.

The general consensus with equity release mortgages is that you will pay off the loan by selling your home. You may decide to do this as a means of downsizing. You may sell it to move to a long term care facility. Others remain in their home until death paying interest, but no principle. At death, the home is sold and any remaining funds that did not go to pay the principle balance are given to your beneficiaries. As you can see in any of these scenarios your home is sold.

There are no absolutes of course. Your beneficiaries may have funds to save the home from being sold. The downside is the funds need to be repaid right after death, whereas a sale of the home can take 12 to 18 months depending on the plan.

Always speak with your family about the equity release lifetime mortgage from Halifax before you sign the contracts. They may have a different solution to your retirement desires. They may also help to pay for some of the things you would dearly love to do and have waited to retire to enjoy. While you do have a solution in an interest only mortgage and other lifetime mortgages, you should always consider all the factors before making a decision whether you are on your own or not. Websites such as Lifetime Mortgage Advice provide essential information on all types of schemes and their pros and cons.

Seek the advice of a qualified equity release adviser who can ensure you receive the best advice and have the knowledge to make sure no existing means tested benefits would be affected. For the Halifax equity release scheme you can speak with a mortgage supermarket regulated by the FCA. It is not possible to speak directly with Halifax about their mortgage product as you need to have an intermediary explain the terms. It is imperative that you seek financial advice from an independent source for full understanding.

The Benefits of Having a Mortgage in Retirement

Paying off your mortgage before retirement may not always be the best idea.

People strive throughout their working lives in order to attain their main financial goal – to have their mortgage repaid before they reach retirement age. But what happens when you have to bring your interest only mortgage into retirement?
During one’s life, a mortgage will be the greatest financial outgoing expense each month and consequently is seen as a millstone around one’s neck. Hence, this is the reason to strive and eliminate this debt as soon as possible; the usual goal preferably before retirement.

According to the statistics, there are still approximately 12% of people carrying their interest only mortgage into retirement with a substantial average balance of almost £60,000!

Attitudes are changing. The mentality of the older generations that debt is bad has dwindled and people can now see how an interest only mortgage into retirement can actually assist their pensioner lifestyles. Particularly in 2013 with the Bank of England base rate at an unprecedented run at the lowest interest rate in history at 0.5%. Yes, retirement savers are suffering as a consequence, but the retirement borrowers are benefitting and using this situation to their advantage.

Therefore, having a retirement mortgage may not be so bad. Many people may have selected this option, rather than feel short of cash. Rather than a large mortgage, by keeping some semblance of borrowings into retirement, property owners can also use this mortgage to assist with estate planning and thus enabling mitigation of any potential inheritance tax (IHT) paid by their beneficiaries after they die.

This would involve totalling the assets; which would include the property and its contents, any savings/investments and then deducting the liabilities such as loans, credits cards and bills. If the mortgage is substantial, this will significantly impact on the net value of the estate and reduce any potential inheritance tax that may be due.

There is one way to get around inheritance tax and that is to pay any money to your children before you die. You can give little gifts well under the capital gains tax amount and gifting amount each year that would essentially take care of inheritance tax after your death. It is one way of making things a little positive in your retirement; especially, with an interest only mortgage into retirement.

Nevertheless, this may not be the only advantage. Another popular reason for carrying on with a mortgage into retirement could be that the home owner could use the additional capital to increase monthly income and pay for lifestyle improvements. Considering the alternatives and living your longest holiday in constant financial plight, this makes a sensible option. Particularly the case as the beneficiaries may only need to sell the property anyway to pay the potential inheritance bill after you die.

Popular reasons for raising extra funds can be improvements to the home, buying a car, caravan or holiday home to retire and relax with. In today’s environment of first time buyer’s difficulty in obtaining mortgages, then how useful could it be to gift money to children, even grandchildren now and enable them to get on the first rung of the housing ladder. It is possible with the interest only mortgage into retirement as well as a couple of other products in the lifetime mortgage industry.

The usual health warnings come with this. Any gifts made from one’s estate when over the inheritance tax threshold should be considered carefully. The seven year rule exists in that you need to survive this period after the date of the gift; otherwise it can still be included as part of the overall value of the estate.

The key to the interest only mortgage for your retirement period is making a payment on interest that accrues each month. The principle balance remains unpaid until the house is sold, but you make payments reducing the amount at the end. For some coming up with the monthly interest payment is not possible.

You have alternative lifetime mortgage options that can reduce your need for a monthly payment like the drawdown mortgage that offers a smaller lump sum and then withdrawals as you need them. By considering all alternatives you can decide if the interest only lifetime mortgage is the best product for you and your family during your retirement.

Therefore, taking an interest only mortgage into retirement has its advantages and disadvantages, however if one has the resources to fund the repayments, then they aren't such a bad concept after all. This kind of schemes aren't only restricted to those in the UK, residents in Northern Ireland can also equally apply for them, for more information on Northern Ireland residents looking to take an equity release out on their home click here.

What Do Mortgage Lenders Mean By Interest Only?

Taking an interest only mortgage out may offer a cheaper way to purchase a property or even a remortgage of your current abode than with the conventional capital and repayment mortgage. The reason being is that borrowers are only paying off the interest charged and not the capital. Low cost endowment policies such as interest only mortgages can be beneficial for a certain type of homeowner. The trick is to use these products with an eye towards repayment rather than just existing. The following will look at certain aspects like calculations of these mortgages to help you better understand them.

An example of interest only mortgage calculations would be as follows - someone borrowing £150,000 at 5% interest rate over 25 years would cost them £624 per month on an interest only basis, and £878 per month on a capital and repayment mortgage. The difference in monthly payments is plain to see. But, you don't get something for nothing and this is what some interest only mortgage holders have found to their cost.

The eventual repayment of the mortgage at the end of the term on the interest only loan will have only paid off the interest charged which would still leave the original £150,000 outstanding. Additionally, this debt will still need to be repaid; hence, a means of savings should have commenced many years ago to counter this. In comparison to this, as long as payments have been met then a repayment mortgage would have guaranteed to clear the debt.

Interest only mortgages have been around many years and have been very common in the heyday of low cost endowment policies predominantly during the 1980’s which were sold as repayment vehicles alongside them - more info found here.

So, what's the problem with interest only mortgage deals?
Some time ago the regulators removed the requirements stipulating that if borrowers took out interest only mortgages then the lender would have to ensure a suitable repayment vehicle was taken at inception and that monthly premiums were maintained. This was in the shape of low cost endowment policies.

The lenders even took the bold steps of taking possession of the endowment policies and keeping them in safe custody with storage facilities provided. Additionally, the mortgagee would put a charge on the endowment policy itself so that encashment could not take place without the knowledge of the lender.

However, as poor performance of these endowments became evident from 2000 onwards the sale of these life assurance policies declined.

People then began gambling on future housing price increases with the hope of this being a repayment possibility over increasingly longer terms. People with interest only mortgage deals and with no repayment of capital can have the major risk in time of falling property prices. This will result in their debt being greater than the value of their home. This can be dangerous.

It can also be an issue at the time repayment is required. If someone does not have the funds then a house has to be sold or a new mortgage has to be attained. The person has to be in a good financial situation for this conversion to a traditional mortgage and wish to pay out more interest on the same principle balance. It is not a very comfortable position to be in.

When someone gets closer to retirement and is starting to see less income, there is added concern over being able to pay off their debts. The only hope someone has in this situation is to have an endowment policy or savings plan that will get better over time or to sell the property and get what they can out of it.

After Retirement Interest Only Lifetime Mortgages
There is another type of interest only mortgage to discuss that would also benefit from low cost endowment policies, but rarely sees them. The interest only lifetime mortgage is set up for retirees for anyone 55 or over. It is usually put into effect for the life of the person; however, the FCA has started regulating these tighter too thus many providers have switched to a time limit of 10 years or 75 in which repayment is due.

The best part about the lifetime mortgage is only paying interest, but knowing that until you and your spouse decide to sell or one or both of you dies you can live in the home. It is only at death that you usually have to repay the full amount, which does not have interest tacked on since you have been paying it. Still, consider low cost endowment policies as a means of saving the home from sale.

The Financial Conduct Authority’s (FCA) Mortgage Crackdown on Interest Only

Interest only mortgages have now been in the spotlight with the UK property market for quite some time. This escalation in best interest only mortgages is particularly concerning as it commenced when people were borrowing increasingly excessive amounts. At the same time low cost endowments which were the traditional investment product sold as the repayment vehicle for an interest only mortgage was dying out. The timing could not have been worse.

Essentially, this resulted in many new borrowers drafting their main plan for mortgage repayment by relying on house prices to keep rising.

This is where the FCA intervened
Their mortgage market review and subsequent proposal forced lenders to have a much tougher stance on UK interest only. Lenders would now have evidence how they assess affordability by using interest only calculators. This would compare the cost to a repayment mortgage and then stress test the mortgage borrowers to ensure they could maintain the monthly payments. This could additionally be checked to see if affordability was an issue once they then revert to a standard variable rate and the mortgage interest rate increased to 2%.

This toughened approach has resulted in most mainstream mortgage lenders ceasing to offer an interest only mortgage unless a savings vehicle such as an ISA is established and evidence of monthly premiums paid. Lenders have also removed the ability of the mortgagor using the sale of property as the repayment vehicle or even an inheritance.

Under these tough conditions you may not want to seek out an interest only mortgage as the main means of purchasing a house. There are definite disadvantages that can be quite costly at the time of repayment. It is certainly a mortgage that requires discipline.

Retirement Interest Only Mortgages
You may wonder why if interest only mortgages are a dying breed there are still lifetime mortgages being touted online with an interest only option. The truth is mortgage lenders are even cracking down on these retirement mortgages too. Many providers have decided to put a 10 year cap on their product making it only available to someone who is 65 or older. They cap the borrowing age at 75, as well as make the product repayment due in 10 years. It means if you are 65 years of age you need to repay it at 75.

While the FCA did intervene for standard interest only products, the retirement product is still based on selling the house as a means of repayment. The idea in this mortgage is that you are beyond needing the house, need to downsize, or need a long term care facility. In this way it does not matter that you have to sell the house to repay the lifetime mortgage.

Since you can still pay the interest during the period you have the retirement mortgage, this leaves only the principle amount to be paid on the sale of the house. This is a specialty mortgage unlike the regular interest only mortgages for first-time homebuyers and the like.

It takes special consideration and a definite need to speak with a qualified lender to seek advice. You also want to gain independent advice from a financial broker to ensure you have the entire picture.

The FCA entered into a crackdown regarding all interest only mortgages because of scams and the ability of homeowners to repay the expensive product. Scams are usually more prevalent for people in retirement age.

Protecting You and Your Family
It is imperative that you protect your family with their inheritance. You cannot depend on your home retaining its value as we have seen in the recent years of subprime mortgage crashes. Housing prices can fall when inflation gets to be too much.

While it is a nice thought that interest only lifetime mortgages can help you during retirement, you also want to make certain your family is okay with you putting the family home in danger. They may be able to find a different solution to your retirement spending needs.

You may also wish to consider working beyond average retirement age. While retiring at 55 to 65 is nice, inflation and rising prices has essentially assured us that we need to work longer and keep in better health.

The FCA understands this and has worked diligently to ensure homeowners are aware of options and potential pitfalls by regulating the industry a little better. Seek advice about interest only mortgage schemes to make the proper decision and protect your financial future for you and your family.

What is an Interest Only Mortgage?

With the recent furor from the FCA (Financial Conduct Authority) regarding the sale and uptake of interest only mortgages, we take a look at how these controversial interest-only mortgages work. The interest only mortgage is not for everyone, so the information you learn about this particular product is imperative to your decision making process.

Firstly, interest only mortgages operate by requiring a monthly payment to be made to the mortgage lender. This payment made pays off the interest that the lender is charging on a monthly basis.

This differs from a conventional repayment mortgage which pays off both capital and interest, and which results in the mortgage balance reducing over the term. Therefore, this capital and repayment mortgage will guarantee the eventual repayment of the mortgage at a pre-determined date in the future.

An interest only mortgage has no capital repayment element and as such the balance on the mortgage will remain the same for the duration of the term. Therefore, to ensure eventual repayment a separate savings plan can be set up where regular payments are made and investment growth occurs. This provides a mortgage which establishes a long term repayment strategy.

The normal investment plans that are required to pay off an interest only mortgage are usually one of three vehicles. This could be equity ISA (Individual Savings Plan), less commonly a pension plan or a low cost endowment. These products are taken out separately and are the responsibility of the mortgagor to ensure they are on track to pay off the capital amount at the end of the term.

This is where problems have arisen over the years, particularly with endowment policies that have failed to meet expectations.

So, is the risk worth it?
Judging by the majority of plans now maturing and people scrambling for alternative means of making up shortfalls, the answer is probably no.

Endowment policy holders with the fortune of hindsight may have already changed to a repayment mortgage upon receipt of the endowment projections with the red warnings. At least time was on their side and action could then be taken to address any potential shortfall.

But, this wasn’t the only reason the FCA has clamped down on interest only mortgages. These mortgages were becoming increasingly popular with first time buyers who were struggling initially to afford the monthly mortgage payments. The danger of this is the temptation for first time buyers to either not set up a repayment vehicle or never switching over to a repayment basis when finances ease.

Pros and Cons of Interest only mortgages
Advantages
• Greater control over the savings element, how it is invested and managed
• Option of which investment vehicle can be used and the ability to maximise tax free growth
Managed correctly the investment growth rate could exceed expectations; therefore, you may be able to pay off the mortgage earlier. Alternatively, on maturity if the policy has over performed then the lump sum paid out at the end of the repayment period could be greater than the mortgage balance. This savings excess then can be put to further use which can normally assist their retirement plans.

Disadvantages
• There is no guarantee that there will be sufficient funds on maturity to pay off the interest only mortgage balance at the end of the repayment period. This could be due to under performance or insufficient payments being made during the investment period.
• The mortgage debt remains constant during the term
• Some investments such as endowments cannot be stopped and restarted, and others may incur a penalty or fee if premiums cease.

As you can see there are disadvantages of interest only mortgage products. Given that you usually have a term of 10 to 15 years for the repayment there is a definite need to roll-over the remaining mortgage into a traditional mortgage before the term comes to an end.

There is one interest only product on the market that is slightly different than those offered to first-time homebuyers.
This is the interest only lifetime mortgage. It is for retirement aged individuals 55 and up. It is set up to provide you with cash throughout your retirement, where you have a disposable income, and may not pay the loan off until you die. If you have reached an age of retirement you may want to ask your financial adviser about the differences in this type of loan.

Whether you choose interest only mortgage in your young age or as a retiree you should speak with your family about it.

For further details on Interest Only Mortgages visit EquityReleaseAdvice.com.

Finding the Best Home Reversion Schemes for You

A home reversion scheme is where you are able to sell your house or part of it to a home reversion provider and in doing so you are able to release equity that would otherwise be tied up in your home. You can choose to either receive this equity in one large sum or to have it released monthly as a regular income. You are able to agree to a set amount of how much you will receive each month. There are certain advantages and disadvantages of these home reversion schemes, which is why you need to find the best plan for you.

You can also select to have a blend of both of these where you can receive an initial lump sum and then the rest will be paid to you each month. This money can be used how you like and you will only need to sell your home at the end. The part of your house that is sold belongs to the home reversion provider and the rest can be used for an inheritance. They can only recoup their money from the share of the house they own.

A home reversion provider will provide 20 to 60% of the home value based on the portion you sell. At the time you move out or die, the entire home is sold and the portion you retained ownership on is what your beneficiaries will inherit. The amount inherited is generally the same percentage of value as given in the original agreement. It is based on the current market value of the home.

If the home increases in value the percentage that remains should increase the value given to your beneficiaries. While they get a percentage like 20 to 60% for the remaining portion of the house, it is due to valuation changes that determines the actual payout.

People who are looking at home reversion schemes will have different needs. This means that one policy may not suit everyone. Home reversion providers then offer different home reversion schemes for a customer to choose from. They will differ in terms of interest, how much equity can be released, the minimum amount of your house that can be sold, the value of your house and other technicalities. This means that you should not just jump into a policy but rather weigh up all your options.

Be aware that home reversion schemes are called home equity releases and lifetime mortgages. A lifetime mortgage is a loan that accrues interest, which is different from selling a portion of your property. If you sell your property and gain funds you do not have a loan to pay back. The lifetime mortgage will have a principle and interest to pay back since you did not sell the home.

It is important to shop around just like with anything. Compare different policies that a home reversion provider offers as well as different home reversion schemes from different providers. A simple way to compare home reversion plans is to look online. Different companies post themselves online and other sites are able to source the best deals and various policies. These are then listed and compared for you. Also, sites will allow you to sign up to them and based on your details and needs they can source a home reversion scheme that suits your needs.

When comparing the different schemes, look for SHIP agents as the UK government has set up a regulatory authority to oversee home reversion providers. Someone on the SHIP list is a trustworthy company that will work with you and provide a fair agreement based on the type of home reversion scheme that will work best for you.

Once you have found a home reversion scheme that suits you, you can call the company that is offering it and make an appointment. You can then get a comprehensive run through of the policy. Make sure that you understand the complete policy and that it suits your needs before you sign on the dotted line.  To first find your potential plan we recommend visiting www.HomeReversion.org.

You may also want to take a moment and utilise other online tools from the company’s website like a home reversion calculator or interest-only lifetime mortgage calculator. Both calculators can highlight the expenses and amount of equity you may receive from the home equity release plan you are interested in.

Most consumers interested in home reversion schemes find it helpful to explore the different options, including the expenses and potential payout before setting up a meeting at a home reversion company.

Why Have Home Reversion Plans Become So Unpopular?

The home reversion plan has had a noticeable decline in recent years, mainly due to the rise in the popularity of new equity release schemes. The main culprit for their demise has been the introduction of newer style lifetime mortgage plans. In particular, you now have a range of lifetime mortgage schemes which are drawdown lifetime mortgage, enhanced lifetime mortgage and the interest only lifetime mortgage. For one reason or another these have become advocates in the lifetime mortgage market.

Home reversion entails selling some or all of your property to a reversion provider in exchange for a tax free lump sum. When you die or move into care, the provider is able to recoup their money when the property is sold. They receive their percentage that they own and your beneficiaries receive the percentage (if any) you didn't sell. This is attractive because there are no monthly payments like in the case of a residential mortgage or personal loan.

You are also able to protect your inheritance as you are only selling a portion of the property. A home reversion plan is only available to those who are over 65 years of age and with a minimum property value of £75,000 (Bridgewater Flexible Release Plan). However, there are more modern and flexible lifetime mortgages which are appealing more to the home owner. A variation to the ordinary lifetime mortgage is the previously mentioned drawdown lifetime mortgage.

A drawdown lifetime mortgage scheme offers you greater control over when to take your money as it can be taken in stages, rather than all at once. Instead of releasing all of your money at once like a home reversion plan, a maximum facility is created. This means that you are able to take a smaller amount at first and then drawdown when extra money is needed. Also, the interest that is charged is only charged on the amount that has been taken and not the entire facility.

You are able to apply for a lifetime mortgage at an earlier age compared to home reversion; usually they can be applied for at age 55 years. However, the maximum facility that you are able to form is usually smaller than the lump sum you would get from a home reversion scheme. You will be able to keep more equity in your property with a drawdown lifetime mortgage which can be a great advantage for any beneficiaries.

A problem with home reversion plans is that people are now more reluctant to lose full ownership over their property, as you have the right to live effectively in their part of the property for the rest of your life. Also, the reversion provider will not give you the full market value and you won’t benefit from any house price inflation on the portion of the house you sold.

Lifetime mortgages are therefore proving very flexible and there are many different types of lifetime mortgages on offer that will suit your lifestyle more easily. You exert more control with a lifetime mortgage and still remain the owner of your property, which is more appealing to many people nowadays.

Home Reversion Plans
• Retaining ownership of your home is done through a lifetime tenancy agreement that can include anyone living in the home.
• The provider may require anyone not 65 or older to sign a release of occupancy; it is an occupancy deed stating that the younger person gives up their right to remain in the house once you move on.
• You do not have a monthly payment, thus there is certain flexibility to use the money in more ways than just living expenses.

A drawback to lifetime mortgages is the loan you have out that must be repaid after you move out or move on. The loan will have interest added to it the longer you remain alive and leave the loan unpaid. It can become a costly scheme if your life expectancy is higher than you planned for. It can also put the inheritance in jeopardy.

Despite home reversion plans becoming unpopular, it is a good idea to remember the disadvantages of lifetime mortgage schemes while you consider which equity release scheme is most beneficial to you and your current financial situation since it can make reversion plans a more suitable option for some.

Nevertheless, do not forget the virtues of a home reversion as they still have a part to play in providing independent and complete equity release. Advice: - guaranteed inheritance & security of tenure for the rest of your life.

Can Home Reversion Plans Keep Up With the Modern Day Lifetime Mortgage?

Despite the fact that home reversion plans have been regulated by the Financial Conduct Authority since 2007 (formerly the FSA), the number of new business cases written only now stands at 3% of all equity release sales. This percentage is dwindling and counter responsive given the fact that home reversion schemes have some protective advantages.

Home reversion schemes have a higher starting age, 65, than lifetime mortgages. Lifetime mortgage schemes will consider many factors like the age of a person, sex and the value of the property to determine the amount that can be released. Lifetime mortgages present many options e.g. inheritance protection and drawdown facilities than home reversion plans do.
 
Additionally, lifetime mortgages have the advantage of being available from the age of 55 and can also now take account of the health of the individual. This is something that home reversion plans have failed to offer since Partnership offered their enhanced home reversion scheme. However, they do benefit from the guarantee offered in that a proportion of the property will always pass to dependents and other beneficiaries.

Reversion schemes work on the premise that you sell part or all of your property. If you sell 50% of your home, then 50% remains with your beneficiaries once you pass away. At this point the provider will sell the home to gain their funds paid out to you when you were alive. Your beneficiaries receive a fair portion of the value based on the amount of property left under their ownership.

Home reversion plans do not accumulate interest, so you do not have to worry about an uncontrolled increase in debt which can apply to lifetime mortgages. There is the other advantage of the fact that you will benefit from the increase in value on your share of the property. People who are much older could even release more cash with a home reversion plan, so it helps a lot in the raising of money compared to a lifetime mortgage.

The disadvantages of a home reversion plan are few, including the fact that you will not own your home 100%. This is perhaps the main reason that has contributed to the dwindling number of home reversion plans. If you choose to sell your home, your estate will not benefit and neither will you retain any property price escalation on the proportion of the property sold.

It is not easy for a reversion company to release money on a property so they tend to be very selective. Lastly, people who die immediately after taking out a home reversion plan could lose a lot more on their estate, unless some protection options are built into the scheme.

The FCA has helped in recent years to provide better protection under home reversion plans in that someone who dies within 4 to 5 years after starting one of these plans may not have to worry about loss of value in their estate. While the property is often sold, the beneficiary can retain a higher portion of the value than they might otherwise gain.

There is also the protection of the lifetime tenancy agreement that states anyone named in the plan and in the tenancy can remain in the tenancy for their lifetime. Even if one person on the agreement passes away early, the remaining family member is able to live out their life in the home before the provider can sell the property.

A main advantage to remember regarding home reversion plans is the lack of increased debt. In fact, you can use the money you obtain on the partial sale of the home to pay off other debts you still have such as personal loans, car loans, or credit card debt. You also do not take out a new loan to gain money for expenses unlike lifetime mortgages.

Lifetime mortgages might be seen as more flexible because of the payment options and age; however, you have to be concerned over the debt you leave behind. In trying to save one’s inheritance you might actually put it into jeopardy under this scheme; that is, if the remaining person has to sell the home to pay the lifetime mortgage.

Before equity release in any form including home reversion plans is undertaken, it is important to get financial advice from a qualified equity release adviser who provides free initial advice via telephone, or even meet you at your own home. You will be presented with many equity release solutions from the range of home reversion plans and lifetime mortgage schemes offering their products in the market.

To learn about the best Equity Release Providers we recommend visiting EquityReleaseCompanies.com.

Why You Should Consider Equity Release Schemes

Are you in retirement and looking for an additional source of income? Is your monthly income from your pension plan just enough to meet your daily living expenses? Do you want some extra cash to go on that dream vacation or to purchase your dream car? If you own a property of a certain value, you can use that property to obtain a lump-sum amount or a fixed monthly amount from an equity release provider through equity release schemes.

What exactly is equity release? Equity releases are schemes that allow retired home owners to obtain a lump-sum amount or a fixed monthly amount by releasing equity from their property. Lifetime mortgages are one of the most common equity release schemes. A lifetime mortgage is a mortgage or a loan that is offered to retired home owners using their property as collateral. The great thing about the lifetime mortgage is that the home owner is not required to make any payments for as long as he lives. Upon the death of the home owner, the property is sold and the equity release provider is repaid for the capital loan amount as well as the accumulated interest.

An interest only lifetime mortgage is a special type of lifetime mortgage that gives home owners the choice to make monthly interest payments. The advantage of an interest only lifetime mortgage is that the amount that will eventually have to be repaid will not be so much. In most cases it will be equalled to the capital loan sum since the interest will be paid on a monthly basis and will therefore not be allowed to build up and thus increase the amount that needs to be repaid. In fact the only way the last payment is more than the capital balance is if the interest rate for the last month has not been paid.

More than one type of lifetime mortgage exists. It is your duty to search out the most beneficial option among this type of loan product. You have a variety of different online websites to check pricing and package details. Look for information on drawdown, enhanced, and roll-up. There is also a rare option of fixed lifetime mortgages.

Another common equity release scheme is the home reversion scheme which makes it possible for home owners to sell a portion of their property or their entire property. They will however be allowed to continue living in their home for as long as they want to or are able to. The moment that they are no longer able to care for themselves and need to move into professional care their home will be sold to repay the equity release provider.

In this situation all homeowners living in the property and over the age of 65 can be named in the home reversion contract. If named in the contract they are also written into the lifetime tenancy agreement. This written contract states that the person(s) occupying the house may remain rent free for their lifetime or until they move. This protects you if your spouse or civil partner dies before you or needs more care. You can remain in the home if you wish or sell it to move with your partner.

The age for home reversion is different than lifetime mortgages. Numerous providers allow a lifetime mortgage to begin at age 55. This is ten years more that you can gain under the lifetime plan. Of course, since retirement is being extended well beyond 65 due to economic constraints this may be irrelevant to you. You should be aware there is a cap in age for both products too. Typically, 75 is the cut off age for mortgages. In rare instances products for home reversion have been found for those of age 80, but nothing has gone beyond this age.

So, if you are a home owner in need of extra cash, consider equity release schemes. You have a tough decision ahead of you regarding your retirement and how to fund it. Explore all your options including downsizing your home, which lowers your monthly expenses. It might not be ideal to give up your home, but it could alleviate the need for so much cash during retirement.

Speak with qualified advisors regarding equity release schemes before you decide on any one product. With so many financial products and terms it is helpful to get a second opinion before you commit. Your family should also be a part of your decision since your choice can directly affect their inheritance.

Financing Home Improvements with Equity Release Schemes

No matter how much we try to take care of our house, there is always something that needs to be repaired, fixed or improved. Home improvements can be quite costly especially for pensioners based on the fact that pensioners have limited income that is generally used to finance their daily living expenses. A new kitchen or bathroom will definitely take many years of pension payments to be able to afford. So, consider another option like your ability to release equity from your home.

One of the most popular routes for the over 55s to pay for home improvements is via equity release schemes. You can release equity from your home to pay for a new kitchen or bathroom or extension for a new addition to the family. Equity release schemes make it possible for pensioners to release capital that is tied up in their property.

The advantage of equity release schemes is that the borrower is not required to make any monthly payment. The borrower does not have to repay the capital amount or the interest amount. The interest charged by the lender is added to the balance yearly...hence the balance increases over time. This causes many borrowers to worry that eventually the balance will increase to an amount that they will not be able to pay. The fact is that equity providers make sure that you never borrow more than you can repay which means that the balance will never be more than the value of the property. This feature is called the no negative equity guarantee.

Eventually, when the borrower and his spouse dies or wilfully decide to move out of the house, the house is sold to repay the lender. If there is any money left after paying the equity release provider, that money is given to the children or beneficiary of the borrower.

Consideration should be given to the children of the borrower as equity release plans do reduce their inheritance so it is always wise to discuss with them first. Some children look for alternatives so that the house of their parents does not have to be sold to repay the equity release provider. In many cases, the children choose to repay the balance using their money to prevent their parents’ home from being sold.

As you consider alternative plans for using equity in your home also think about why you wish to use such an option. When you release equity from your home to improve your home it needs to be an improvement that will not only benefit you, but also increase the value of your home. In this way when the home is sold you can actually gain inheritance for your children.

The housing market can be volatile. Some years you may see an increase in your value. In the next you might see a huge loss. It depends on the economic situation in the UK and right now there is repairing going on for the economy and housing market. Housing prices are starting to increase, which can mean a better situation for you down the road.

Money can be taken out in an equity release for several reasons. No one can stipulate how you use the money. For some, taking it out for that once in a lifetime holiday is the greatest way they can use their equity. On the other hand it places a huge burden on the family if they wish to keep the family home.

As you consider the advantages and disadvantages of using equity for various expenses, think about the different types of lifetime mortgages available versus home reversion. Home reversion allows you to sell your home in exchange for tax free money that does not have to be paid back. If you are selling your home in the end anyway this might seem more appealing to you. Since you release equity from your home but do not owe a payment and live in the home rent free until you wish to leave it can seem more affordable.

You also have an interest only lifetime mortgage where you pay the interest on the loan for the lifetime remaining in your home. The principle or capital balance remains unpaid until you sell the house or the payment is made in full some other way. For some, having a mortgage with the potential of saving the house they live in is important. It makes the interest only option when you release equity from your home desirable. Other lifetime mortgages are not payable early and you do not pay interest, which means the full amount is due at the end.

Know More about Equity Release Schemes

If you own a house, there are so many ways you can benefit from it. Do you know you can get money from your house without much complication? Well, it is true. Using an equity release scheme can make this possible. Where equity release schemes are concerned, you can choose between releasing large or small amounts of funds which mostly depends on what you need funds for.

If you need information on equity release, it will be best you use the internet. Using the internet is easier because you will be able to find many equity release scheme providers and much information. Numerous websites exist where you can compare different companies side by side to see who has the better scheme. You can also find out the current charges and interest these providers are offering. With the Internet you can read about different schemes from the company directly, read reviews, and check up on the providers.

Also, you can get free access to equity release calculators to help you calculate amounts you can borrow. The various providers can help you choose and calculate the size of the funds you can withdraw from your equity release scheme. These same websites offering calculators have other tools that will teach you about these plans. It is to your benefit to ensure you do not make a wrong decision or at least one that is more costly for your retirement.

There are so many types of equity release schemes you can consider before making a decision.
For instance, there is also the Home Reversion Scheme that also has many competitor schemes; Home Equity Release, Lifetime Mortgage or Drawdown Equity Release Mortgage, etc. All these equity release schemes and more, vary in procedure and type. For instance, with Home reversion schemes you can sell half or even your entire house but can still live in it until you want to leave or pass away.

Lifetime mortgages are not like home reversion plans because they are loans. The loan is taken against the collateral of your home. The difference between a mainstream loan and this option is the payment setup. With a lifetime mortgage you do not make a monthly payment. Instead, the interest accrues on the capital balance for the life of the loan. At the time you decide to move to a retirement community, need a nursing facility, or expire the loan is repaid in full with interest. It is usually paid by selling the home. Any equity if left is given to your beneficiaries. Depending on the choice of equity release plan, there may not be any inheritance left.

Interest only lifetime mortgages work slightly differently in order to leave an inheritance behind. With this lifetime mortgage you do make a monthly payment of just interest. The capital sum remains unpaid. Since you protected the home from entering negative equity or just using all the equity, money is usually left for your family.

When you look for a lifetime mortgage or home reversion plan see the FCA or financial conduct authority page on equity release. There will be a list of registered and trusted companies you can deal with. Also ask if they are part of the Safe Home Income Plan or SHIP.

Many people make the mistake of not reading the terms and conditions of an equity release scheme properly before they sign up which is very dangerous. All will be good if you understand every bit of terms and conditions in an equity release scheme. Get your solicitor to explain carefully what implications equity release can have on your future. Also, it will be the best solution if you select a solicitor who is experienced in these matters such as a member of ERSA (Equity Release Solicitors Alliance).

Some criteria you must meet to be eligible for lifetime mortgage schemes include the fact that you must be at least 55 years of age and own your own house. Taking the equity release scheme decision is not easy which is why you need to take the process steadily. Rushing the process means making mistakes. Many people become surprised when they find out that the equity release scheme gives higher amounts or sums to older people who still have their homes in the best of condition.

Avoid the pitfalls which have given a bad name to equity release schemes and ensure you have the best decision made. Just because you meet the qualifications for schemes does not mean it is the right situation for you.

An Introduction to Stonehaven Equity Release Schemes

Stonehaven is one of the few companies that specialize in equity release by providing innovative retirement solutions that give pensioners the opportunity to release tax free cash from their property. Stonehaven is a member of SHIP, the organization that is dedicated to the protection of equity release customers, and is regulated by the Financial Conduct Authority.

Stonehaven makes it possible for people who are over the age of 55 to release some of the money stored up in their property without having to relocate. This could either be by giving them the opportunity to sell their property or to remortgage their property. Their age, the value of their property, their sex and the amount of money they would like to borrow will determine how much equity can be released from their property.

The two main plans offered by Stonehaven are the roll-up equity release scheme and the interest only lifetime mortgage. The difference between these two options is the final balance that needs to be repaid and the different tiered interest rates each scheme has. Rates on each scheme currently start at 6.13% with the lowest loan-to-value ratio which is the interest select and lump sum rate. As this ratio gets higher and the borrower loans more of the property value then rates can escalate to 7.57% on the Stonehaven Interest Select max.

The roll-up lifetime mortgage requires no monthly payment thus increasing the balance year after year. When it is time to repay the mortgage, the initial loan amount and the accumulated interest amount will have to be paid. How the money is paid back is something you will need to consider.

Typically, lifetime mortgages are repaid by the sale of your home. The loan amount can even equal the entire home value by the time you decide to move or expire. This is due to the accumulating interest. If you live more than 10 years after you took out the loan it may exceed the home value. This is also dependent on the housing market. The housing market can fluctuate where you may have to move or you may see death during a time of lower housing market values. Be aware of the disadvantages as much as you are of the advantages of each product from Stonehaven to ensure you are not choosing the wrong product for you and your family.

The interest only lifetime mortgage requires a monthly payment of the interest. By paying the interest every month, the balance remains constant. The final balance is therefore the same as the original amount that was borrowed. This option is common among those who want to protect an inheritance for their children. Eventually, the property would have to be sold to repay the mortgage. The advantage of the interest-only lifetime mortgage is that when the property is sold and the mortgage is repaid, there will be money remaining to leave behind as an inheritance. With the roll-up lifetime mortgage, this is not always possible since the balance that needs to be paid keeps increasing instead of remaining constant.

You have two of the products on the market explained here. There are more than two types of lifetime mortgages. You also have more than one provider of these plans. The idea here is to ensure you understand two of the products on the market. You will want to compare them for their differences and then compare them to other companies and products. In this way you can be sure you have the right deal for your situation. Additionally, as you compare think about one more product Stonehaven has offered.

Home reversion is different to a lifetime mortgage. In the past numerous companies have offered this plan, but there are only a few of them left today. A home reversion scheme sells part of the home in the beginning of the process. You sell the amount of home you need with regards to the lump sum you obtain. Since you sold the house you do not owe any money at the end of this scheme. Instead, you live in your home free of rent with the guarantee it cannot be sold until you pass on or move on to a different home or care facility.

You have no interest and no amount to be repaid. This is a definite advantage for the home reversion versus a lifetime mortgage. You even have the potential of leaving a portion of the house unsold to the home reversion provider. If you do so there is a guarantee of inheritance for your family.

To contact a Stonehaven specialist who can advise on which of their equity release plans is best for you call www.equityreleasesupermarket.co.uk on freephone 0800 678 5159.

Home Reversion Plans - A Release of Equity

A home reversion plan has reduced in popularity over the years and is not as common as the lifetime equity release plan. The home reversion scheme allows a release of equity by the homeowner selling a portion of or an entire property in exchange for money. This money is normally paid by an equity provider as one large amount or it is paid in monthly instalments. Some providers allow you to collect a large amount in advance as well as small monthly instalments. Home reversion schemes do have their advantages.

The price that the equity release providers will pay for the property will normally be significantly less than the market value of the property. This might sound discouraging but there is a reason for it. The equity release provider needs to do this because the property owner will be allowed to stay in his or her property until he dies or decides to move into long term care. Only then will the equity release provider be able to sell the property. Additionally, they will live in a portion of their property that they no longer own - rent free.

While it might seem skewed towards the home reversion provider, keep in mind that you are leaving behind no debt under this type of release of equity. A mortgage or reverse mortgage leaves behind debt your beneficiaries have to pay off when you move to a care centre or die. You save money by not paying rent, a mortgage, or taking out other loans to pay your monthly expenses simply by tapping into equity you have in property you own.

The amount that the property owner receives is dependent on the value of the property and the percentage that the home owner is willing to sell. If the property owner does not decide to sell all of the property immediately, he or she retains the freedom to sell another portion of the property in the future, if there is a need to do so.

The advantages of home reversion plans are as follows:
• The payment that the property owner receives is tax free.
• The property owner is allowed to remain in his or her property although he or she has sold it or a portion of it.
• There is a guaranteed inheritance to pass to one’s heirs if less than 100% of the property is sold.
• Rent is free.

The disadvantages are as follows:
• The property owner will be selling his property for less than the market value.
• If, for any reason, the property owner wants to buy back the portions of his or her property that were sold he or she needs to buy it back at the current market value. This is a clear loss.
• You must be 65 years of age or older.

Age can be an advantage or disadvantage depending on your income situation. Someone who is retired, has an illness and no income, or a disability at an earlier age than 55 will be unable to take advantage of this type of release of equity. However, if a person can wait until 65 or even older there is a potential of gaining a better value for the portion of home sold. The scheme can work up to 80 with most providers, and some might allow for an age past 80.
 
If you need money for short term purposes and uses, you should not consider a home reversion plan. There are other forms of equity release schemes that can provide you with the money that you need for short term use without requiring you to sell your house.
 
One example is the lifetime mortgage release of equity. Like the home reversion, you have some benefits to this type of equity release. You are not subject to payments and instead gain a lump sum or instalment of payments based on the equity you take out of your home. The difference is in the debt on the home. Unless you are able to pay the mortgage back, your beneficiaries may have to sell the home after you die or move to a long term care centre.

Home reversion schemes are not to be confused with sell & rent back schemes, as home reversion plans are fully regulated by the FSA (Financial Services Authority, now the FCA) and the providers will also be members of SHIP (Safe Home Income Plans). Make certain you check providers’ qualifications before you sign for a release of equity scheme.

When Ill-Health Can Prove an Advantage

People with ill health, and especially the older population, can now gain a lot from answering short questionnaires about their health. Previously, ill health was a disqualifying factor when it came to mortgages. Insuring partners have come up with equity release plans that consider the health of a person in determining the amount that one can borrow against their property. Since these plans are made according to the life expectancy of a person, the more ill a person is the more the amount one can borrow. This option is known as ill-health lifetime mortgage.

The ill-health lifetime mortgage is no doubt cold sounding, especially since one has to prove that you may not have a long life expectancy compared to the average person. For example, for a person who is 80 years or above, the number of years that the standard plan assumes one will stay on the property before moving to an aided care institution or passing away are specific. This means that the mortgage company will wait for a specified period before taking over a property to recover their investment.

In order to qualify for the impaired or ill health lifetime mortgage, one has to prove that they are unlikely to live beyond a certain period. Once the proof has been verified, the lending company processes the request fast, giving you favourable interest rates. The impaired lifetime mortgage also features favourable payouts, which could be up to 30% more than the normal release schemes.

The application process varies depending on the policy of the company where you wish to apply for an impaired mortgage. Usually, the process is more involved than that of a standard mortgage. Some of the compulsory processes include filling out a questionnaire on health and lifestyle, and indicating if you suffer from any medical condition.

Medical conditions that apply for the enhanced lifetime mortgage include:
1. Obesity
2. Issues due to smoking or drinking during your life
3. Cancer
4. Aids/HIV
5. Tumours
6. Other diseases with low life expectancy (Multiple Sclerosis, Huntington's, etc.)

The insuring partners have different requirements for the application process. The main insurers are Aviva, Partnership and More2life. These companies may require you to get a medical check up to prove the severity of your health condition. Aviva's Lifestyle Flexible plan has an interest rate starting from 5.42% and annual percentage rate of 5.6%.

Partnership's plan share a name with More2life's equity release plan, which is the Enhanced Lifetime Mortgage. It comes with a 7.45% interest rate and an APR of 7.5%. This plan is suitable for people who are 60 years and above, and comes with 500 pounds cash back guarantee. More2life, on the other hand, offers 6.6% monthly interest rate with 7.1% APR and a 1000 pounds cash back guarantee. It is suitable for people of 55 years and above.

Ill-health lifetime mortgage options do vary; however, if you are 55 years of age you do have an option of gaining help for owning your home. You may want to consider other situations before signing up for one of these mortgages. For example, when you die what will your family live off of? If you have a spouse will they have enough savings to make retirement? The idea of enhanced lifetime mortgage is for the house to be sold and the mortgage repaid upon your death. This could put your remaining family in a difficult situation. You need to understand that this policy option is not for everyone, but it does have benefits you might find useful based on your health and living situation.

The lump sum will be greater than a regular lifetime mortgage and it will still be dependent on your home equity. The more equity you have in your home the easier it will be to get a larger lump sum for when you need it. Housing values can also increase, which may help your loved ones as they reach retirement.

It is always a good idea to speak with your family to outline your plan and see what they feel about the ill-health lifetime mortgage. If you and your family have questions seek a financial advisor who can look at your current savings, retirement pensions, and your home value to determine if this type of mortgage or one of your other options is better. You want to live out your life comfortably without worries, so make certain you can with the right mortgage choice. Try out one of these schemes if you wish to buy a home or gain equity from your home, and your ill health is limiting you.

What is Equity Release: Understanding the Basics

Many retired people have heard the term equity release, but a great number are unfamiliar with the financial concept. In order to understand what equity release is, you will need to be aware of the basic principles.




 




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What is the Maximum Equity Release I Can Raise?

Equity release is now one of the most popular methods of raising a cash lump sum. The schemes allow people aged over fifty five to leverage the equity in their home to raise cash through a lifetime mortgage scheme or home reversion plan. The initial concern of most people is “what is the maximum equity release”, and while this is an important factor, it should not be your only deciding concern.




 




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Can Loans and Regular Commitments Affect Equity Release Borrowings?

Many people are interested in equity release schemes, but a great number worry about proceeding with an application since they are concerned that their equity release borrowings may be affected by their regular financial commitments. In order to fully understand the factors which affect equity release borrowings, it is important to gain an understanding of the principles behind equity release.




 




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Why Prudential Equity Release Remains a Lifetime Mortgage Lender

When researching equity release, many people are surprised by the number of household names they encounter. There are a great number of reputable and established financial institutions who now offer equity release schemes. There are already a great number of people who have utilised well-known names such as Prudential to gain a lump sum through a lifetime mortgage. For many people, the first indication of these names is found through using a Prudential equity release calculator. Equity release companies are often found to offer a number of different financial services and the Prudential is no different.




 




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The Virtues of Using a Lifetime Mortgage Calculator

Are you dreaming on going on a once in a lifetime holiday? Do you spend your day thinking of buying your dream car? Or would you like your retirement to be filled with all the adventures and activities which you could not do in your younger years while spending all your time maintaining your stable job to secure your future? It is not uncommon for a number of people to reach retirement age and find that their pension fails to provide the right level of income in the real world or find themselves having to make compromises to their lifestyle which they regret. For these people, retirement can mean a limitation of options with conventional financial products. However, with equity release, they can access the benefits of their hard work in securing a property without the need to move home. Although many people may be hesitant to commit to explore their options further with a specialist broker, a lifetime mortgage calculator can provide a quick insight into the feasibility of this option.




 




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How an Equity Release Calculator Can Speed Matters Up

For a great number of people, the prospect of compromising on their lifestyle to manage on their pension or trying to find the funds for long term care can be incredibly daunting. However, there are a number of finance options which are available and specially designed for the over fifty-fives. Equity release allows home owners to release some of the equity in their property without the need to sell their property. There are a great many providers offering equity release schemes and many will often provide an equity release calculator program or tool to assist their potential clients.




 




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Use an Equity Release Calculator UK for Quick Results

For people at the age of fifty-five or over, there can be limited finance options available. In the last few years, the equity release marketplace has grown significantly and now is one of the most popular sources for finance in this age group. Equity release has been shown to be a popular method for older people to use the equity which has built up in their home to obtain a tax free lump sum which can be used for uncertain times, long term planning, supplementing their pension or assisting children or grandchildren to start on the property ladder. Many people have found that with an equity release calculator, UK residents can quickly obtain important information which can help them to make the decision about whether equity release is suited to their needs. 




 




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Calculating How Much Money You Can Obtain from an Equity Release Plan

Equity release schemes offer the possibility for people who are fifty-five or older to release the money which has accrued in their home. This can provide a flexible financial agreement for those on a fixed income or needing finance for another purpose but unable to qualify for conventional financial products due to their age or income. For many people equity release calculators will allow them to instantly see whether they qualify and the size of lump sum which would be offered.




 




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Determine Your Cash Amount with an Equity Release Calculator

Equity release can be a great method of releasing the cash secured in your home and using it to make personal purchases, start a business, buy a holiday home or supplement your pension. The equity release industry has expanded a great deal in the last few years with even more companies offering a vast range of products. For many people, the first consideration of equity release is determining what cash amount would be available to them. This can be easily accomplished with an equity release calculator (found at http://www.equityreleasecalculator.net/). These helpful online tools can provide a fast way to assess your options and discover the potential cash amount which could be obtained. However, there are a number of other benefits to using an equity release calculator, these include:




 




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Equity Release Compound Interest Calculator

Equity release products have seen a great increase in popularity in the retirement market of today. This is due in the most part to the fact that people over fifty-five can have difficulty obtaining conventional finance because of their age and income restrictions. Equity release products have been specifically designed to allow this age group to borrow money secured on their own property. Unlike a conventional repayment loan or mortgage, usually there are no monthly repayments to be made by the home owner which could compromise their fixed income. Therefore, equity release represents a popular way which allows retired people to borrow cash tax free. However, the equity release market can be a little more complex; so many companies now offer compound interest calculator tools to enable people to develop a clearer picture of the financial implications of the loan.




 




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How Equity Release Calculators can Help You to Determine if You Can Afford a Property

Releasing equity from a home can be an excellent way for retired people to gain access to a cash lump sum or an additional regular income source. The money obtained through equity release is available tax free and can be used for whatever the home owner chooses. Since a great number of retired people find themselves rich in their assets but struggling for cash, equity release can provide a way to eliminate any financial crisis or burden. By using an online equity release calculator, home owners interested in exploring their equity release options can determine if it will provide sufficient funds for their plans.




 




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Upon Down Valuation: You Will Need to Revisit Your Equity Release Calculations

Many people interested in equity release utilise the online and a free equity release calculator to determine what their maximum drawdown facility is. However, these calculations are based on the information you provide and are pre-programmed to calculate a set formula. The calculators have no facility to check the current market value of your home. So what happens when you proceed with your application and find that your property value is not what you quite expected?




 




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How to Figure Out the Equity Release Value Available to You

Equity release has become one of the most popular finance trends in the current housing market. It provides a way for those who are aged fifty-five and older to obtain a cash lump sum, when other financial products may be unavailable to them because of their income and age. The lump sum received through equity release can be used for any purpose and can be an essential way for a number of older people to inject some financial stability into their retirement. The first stage of assessing whether equity release would be beneficial for you is to determine the maximum equity release lump sum available.




 




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Calculating the Maximum Equity Release Amount Possible

For many retired people, the prospect of managing on their pension with little possibility for financial help or an additional income stream is a daunting one. However, there have been a number of developments in the financial services industry. Retired home owners now have a number of financial products which have been specifically designed for their age group. This includes equity release. Equity release allows home owners aged fifty-five and over to gain access to a maximum release of equity which has built up in their homes. This equity release can take the form of a tax free lump sum or a fixed monthly income for the remainder of their lives. 




 




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Using an Equity Release Calculator

Whenever you are considering making a financial decision about borrowing or investments, it is important to know about all your options and the limitations or restrictions which may apply. Many products are regulated for consumer protection, but you may wish to conduct your own research before committing to see a financial adviser or broker. For the over fifty-fives age group, there are limited options for borrowing or raising additional funds. However, the equity release market has a wide selection of plans and schemes which allow this age group to release the equity tied up in their property. 




This can provide a tax free lump sum which can be used for purchases, supplementing a pension or even as inheritance planning. In order to assess whether equity release is a viable option for your circumstances you are going to need to calculate the maximum lump sum available and this can be done using an equity release calculator.




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Calculate the Maximum Release of Equity From Your Home

When you are struggling with a difficult financial situation, it can make life very stressful. This is especially the case for retired people who have few additional income sources available to them. They have lost the possibility for a pay rise at their corporate career and in tough economic times will have few opportunities for working and gaining another income. Many retired people find that their carefully made pension plans have failed to hold up against inflation and the increased cost of living, so are struggling to maintain their lifestyle on their fixed income. However, equity release can assist home owners who have their financial assets tied up in their home. 




Rather than needing to sell their property and move into a smaller home, equity release allows home owners to obtain a cash sum while retaining the right to live in their home for the rest of their lives. Many retired people are hesitant to approach a financial adviser about equity release until they know more about whether it could be the solution for their requirements. However, online lifetime mortgage calculators can be a quick and easy way to find out more.




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Increase Your Knowledge with a Lifetime Mortgage Calculator

When investigating the equity release marketplace, a great many people can feel a little overwhelmed. However, there are some free tools which can assist people in expanding their knowledge about the products and services offered. These tools can even assist with information about the different types of lifetime mortgages which may be suited to your needs. 




 




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Why an Equity Release Calculator is Important

Equity release schemes have been increasing in popularity over the last few years. With the ageing population in the UK, there are increasing numbers of retired people who are struggling to maintain their lifestyle with the increasing costs of living. While there are many finance options available for those who are employed, once you have retired, you may have difficulty obtaining conventional finance. However, equity release schemes have been specifically designed to cater for those aged fifty-five and older. Although some people may be hesitant to speak directly to a broker for fear of being pressured, there are a number of online calculators which can provide some helpful and important information. It is worth taking the time to research your options and ensure that your online tool includes an enhanced lifetime mortgage calculator.




 




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Interest Only Mortgages Basics

The working of a traditional mortgage involved a borrower paying fully amortised payments to the mortgage lender. This means that a borrower pays an equal amount every month. This is an amount determined on the basis of a calculation done. This calculation derives the amount to be paid every month by the borrower to pay-off the loan in full.




There is usually a specific term within which the loan has to be paid off. However, there are now interest only lifetime mortgages that can suit, depending upon one’s financial demands.




Interest only mortgage loans differ from the traditional loan system because they do not require a monthly amortised payment on behalf of the borrower. Therefore, only the interest charged is paid, no capital, thus resulting in the balance remaining the same. Read More...


How Does the Halifax Retirement Home Plan Mortgage Work in Practise?

In essence, the Halifax Retirement Home Plan is a conventional mortgage but with a twist for those who are interested in what it offers. Traditional mortgages finish once normal retirement age commences, but the Halifax Retirement home Plan comes to life. The question is, do you want to keep your home or will you need long term care a lot earlier than you think?




We can never assess what we might need as we look at financial products. Life changes quickly. One minute you feel you have all the time in the world to own your home and enjoy retirement and in the next you are already looking at long term care for a part of your family. This is why you need to consider the Halifax Retirement Home Plan with an eye towards potential life expectancy and inheritance for your beneficiaries. The interest-only lifetime mortgage is becoming scarce, making it harder for you to find one that will last until your death.




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Plan Ahead for Your Retirement with a Halifax Equity Release Scheme

Many people don’t plan for the future when it comes to their retirement. They subsequently find they are short of money to live life to the standard they have become accustomed to. An equity release from Halifax might be the answer to their problems. The aptly named Halifax Retirement Home Plan is becoming quite popular due to the following benefits it offers including the potential of gifting money to one's beneficiaries.




 




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Halifax Retirement Home Plan: An Equity Release Scheme to Safeguard Your Future

Do not be intimidated or confused by the name ‘Halifax Retirement Home Plan’. This is just an interest only equity release lifetime mortgage scheme that lets people make use of the equity that is tied up in their home. Halifax equity release is great for people who do wish to release tax free cash from their home and have good disposable income to cover the monthly payments. Plus, there is an added inheritance protection guarantee with certain plans.




The retirement home plan may be a better option for the kids as well. The plan is a good alternative to the conventional roll-up equity release schemes. If inheritance is an issue and concern for the beneficiaries, with the stability of the Halifax mortgage balance over the life of the loan it will provide inheritance protection guarantee for them. For some of the older generation whose attitude to risk is extremely low and averse to borrowing in the traditional sense then the Halifax Retirement Home Plan has proved to be an excellent measure.




Pensioner mortgages (found on this website) require a stable source of income from retirees in the later years of their life. The one advantage pensioners have in the realms of affordability is stability of income. Additionally more often than not is the amount of equity residing in their property. Given the majority of elderly people have lived in their properties for many years they would have paid what is in today's terms a meagre value for their main residence. Read More...


Equity Release Mortgages Boosted By Poor Health

There is one way in which the poor health of pensioners can be beneficial to them – equity release. Equity release schemes allow retired homeowners to release cash from their properties. Many equity release mortgages take into account the medical condition of the person or persons applying for the mortgage to determine how much money they can take out of their properties. These mortgages are commonly known as impaired life equity release schemes.




Many equity release providers including Aviva, More2life and Partnership realize that pensioners with poor health have different needs than pensioners with good health and will therefore need more money to sustain their needs and to enjoy their lives with their family and friends while they are physically still able to do so.




The general rule is that the worse the health of homeowners, the more money they will be able to take out of their properties. Common health issues that are taken into consideration and that might result in a homeowners qualifying for more money include: diabetes, strokes, angina, cancer, heart attacks and Parkinsons diseaseRead More...


The Virtues of Stonehaven Equity Release Plans Currently Available

Stonehaven Equity Release is a specialist website that advises on the various lifetime mortgage schemes they have available. There are predominantly two forms of equity release plans that Stonehaven has to offer, which are the roll-up and interest select plans. They are both two forms of lifetime mortgages. Roll-up equity release plans are where a capital lump sum is taken and no monthly payments are made. Consequently, the interest rolls up each year and compounds accordingly.




The Stonehaven Interest Select plan is effectively an interest only lifetime mortgage where the applicant makes a monthly mortgage payment that pays off the interest. There is also the facility where instead of paying off the whole interest charged, the borrower can elect to pay back just part of the interest starting from £25 per month. With this particular equity release scheme, the balance remains level throughout the term of the mortgage.




Stonehaven Equity Release has independent financial advisers who can discuss your options. For instance, if you want a relative to inherit the property, the adviser will tell you which lifetime mortgage is the best choice. Since they just lend to people age 55 and older, the minimum mortgage amount you can receive is just £10,000. The amount you can borrow is determined by how much your property is worth and the age of the youngest person on the deeds. Stonehaven currently has a minimum property value of £70,000. Read More...


Stonehaven Interest Select Scheme Allows Pensioners in Manchester to Purchase a House

Stonehaven Interest Select could be your answer to your current situation. Many people in Manchester are putting in extra hours at workplaces that grant them a chance to have extra finances for a slightly better life in their retirement. They spend a large part of their lives earning money and paying for material possessions; however, due to illness and disabilities, they may not be able to enjoy these things during their retirement. More specifically, disabled pensioners may not be able to fully utilize their property. For example, they may no longer be able to walk up the stairs. In such cases, they may need to purchase a new home – one that is better suited to their current physical state.




The problem, however, is that they may not have the finances to purchase a new property. Many of them do not even know that there are options available to pensioners in Manchester which can make it possible for them to purchase a house. This is where Stonehaven equity release schemes come in handy.




More specifically, Stonehaven Interest Select Scheme makes it possible for pensioners to obtain the funds they need to purchase a new home. The Stonehaven Interest Scheme can be seen as a unique education tool in that it provides information to pensioners who are looking to purchase a house in Manchester. Read More...


Available Equity Release Schemes

Equity release is the means of obtaining a fixed stream of income or a cash amount by using the value of your property while continuing the use of your property. Equity release is especially useful to retirees whose main focus is on maintaining their daily needs or enjoying their retirement to the fullest and not so much on leaving an inheritance for their children. The fact is that equity release schemes are normally repaid at a later stage. This is normally when the borrower and their partner dies.




There are several options available to elderly home owners when it comes to equity release. One of the most common options is the lifetime mortgage option in which a borrower obtains and secures a loan against his property. This loan is repaid through the sale of the property after the borrower and his partner dies or chooses to move into a care home. Compound interest is normally charged to the capital loan sum throughout the duration of the loan and is repaid together with the capital loan sum. During the duration of the loan, the borrower remains the owner of the property and is responsible for taking proper care of it.




Another common equity release scheme is the interest only lifetime mortgage which is very similar to the other forms of lifetime mortgages with the exception that the interest amounts are being paid on a monthly basis during the duration of the mortgage. There are several products under this heading of interest only lifetime mortgages. Some can be coupled with a roll-up scheme which is the standard lifetime release. You pay a portion of the interest and the rest is rolled up into the mortgage amount. The more interest you pay in a month the less that accrues onto the initial lump sum. It is wiser to go with an interest only amount you can afford and one that does not add to the initial capital sum. Read More...


Benefits of an Equity Release Mortgage

Many people are not aware that it is possible to get money from their homes without having to rent or sell them. This can be done by a procedure known as ‘equity release’ which helps people to get tax free funds without selling their home. After a person buys a property, the value of the home gradually increases over time, albeit can be cyclical and currently the property market is at the bottom of this cycle. This is why examining key retirement solutions is imperative to ensuring you have the right product for you.




When property prices do pick up this additional increase in value is known as 'equity' and a person can borrow money based on this added value.




The first and most important step is to seek advice from companies that specialize in this kind of arrangement by offering a range of key retirement solutions. One of the common reasons why people seek an equity release is being unable to cater for household maintenance costs. An equity release mortgage gives homeowners access to cash to keep their houses in good condition and thereby maintain their re-saleability. Read More...


Two Different Sides to an Equity Release Mortgage

Most people at the age of 55 and above are eligible to receive an untaxed lump sum for their property by a lender. This amount can be released in full or in stages according to the plan. However, with either way it has to amount to the valuation of the same property and it does not matter whether the value changes or not. The amount agreed during signing of contract by both parties stands fixed for the entire period of the equity release mortgage.




An equity release mortgage is classified in several sections depending on the lender and the age of the borrower. A borrower might be planning to use the amount received for their property to develop another property elsewhere or to facilitate another programme. In this case, full amount is paid up during start up where they will be required to vacate the premise after a certain period of time, or in most cases until death.




The reason why age of persons seeking equity release is prominent is because the lender wishes to cash in on the property at a time when its value remains similar or has appreciated with time. The value of property must be realised in full upon taking over of property ownership by the lender, whereby profit will be in terms of interest paid by the borrower to facilitate the mortgage. Read More...


Your Guide to Equity Release Mortgage

Have you been thinking of equity release mortgage plans lately? Well, it will be best to consider what your options are and also why you really need to make such an important move. What equity release schemes do is to enable home owners to get money from the present value of their homes but still give them the opportunity to live in their houses, some for some years and others till death.




Due to the increase in many homeowners considering equity release schemes, there have been many equity release plans introduced into the market that have been designed to make the process easier for all homeowners. Over the years, there have been many publications over the world that have considered equity release mortgage plans not necessary, but year in and out we have realized how important they are.




Whether you want the repayment mortgage type, interest only type of mortgage, the lifetime mortgage, the home reversion plan or the home income plan it will be best to have amounts calculated using the equity release calculator. It is best for every home owner that lives in home with family to make the family know what is going on and also to be aware about the scheme in order to prevent any surprises that might lead to some sort of arguments. Read More...


A Unique Lifetime Mortgage from Stonehaven

Seekers of equity release plans have been having some real tough moments deciding on the most suitable plans as relayed by various lenders. The contest has been mainly on the interest part, where lenders have improvised self-sustaining equity calculators to facilitate their own financing through the valuation of assets brought forward by borrowers. Even though there are several equity release plans on offer, it has been difficult for borrowers to understand each one of them in detail, given how lenders are making hidden adjustments not pre-stipulated on the contract terms. Whether you look at Stonehaven interest only lifetime mortgage or a different company always keep in mind that you can speak with an adviser. 




Stonehaven interest only lifetime mortgage comes as a different kind of lender where borrowers have something to smile at last. They are in a position to safeguard savings for the generations to come through the tailor-made financing plan. Beneficiaries of this scheme have the option to decide on the amount they are willing to pay in interest, and also the period of paying.




Better still, borrowers can buy out part or the full interest paid by making payment using the same principal amount awarded for mortgage. This gives them full control of their equity as they will have to worry about other issues other than interest levies. The Stonehaven plan also gives the borrower the chance to make adjustments with progressive payments in case they have a flowing income which can sustain the monthly interest requirement. Read More...


Stonehaven Requires Some Form of Property Insurance

Stonehaven is an equity release company that provides a range of interest only lifetime mortgage schemes. A lifetime mortgage is a form of equity release that allows people who are over the age of 55 to take out a mortgage that is secured against their property and will last for their rest of their lives. Stonehaven Interest Select Plans are not for everyone, but they are something to consider when you are in need of funds during your retirement.




This is what it is known as a 'lifetime mortgage'. A lifetime mortgage is different than a conventional mortgage in that a conventional mortgage will only run for a set term and needs to be repaid at or before retirement. Conventional mortgages are 30 years in length; however, you can refinance or go with a shorter repayment term. The difference is how you repay both mortgages. In comparison the lifetime mortgage will run for life and be eventually repaid upon the sale of the property.




Conventional mortgages require repayment on a monthly basis where you pay interest and a part of the principle balance until the mortgage is paid off. Lifetime mortgages require no payment until the end of your life or you move to long-term care. You typically have to sell your home within 12 months of moving or your family repays it by sale with up to 12 months for the sale to go through. Your family could also pay off the mortgage and keep the home, but payment is required immediately rather than a grace period of 12 months for a sale to happen. Read More...


Are Stonehaven the Only Company Offering a Retirement Mortgage Plan?

Choosing to have another mortgage in the future might sound crazy to some people, but it still makes perfect sense. A mortgage is simply a loan that you use to secure a property for yourself and your family, and taking another mortgage on into retirement opens up a world of new, fresh opportunities that you may not have known about if you had not done so. The equity release market is one of many sectors that are increasing in the mortgage market, and retirement mortgage is a part of the vast array of equity release schemes that are available that pensioners are choosing in lieu of interest only mortgages.




A retirement mortgage is for people who want to create plenty of choice in the future and also lessen the load on their families. Retirement mortgages can also help your family avoid being taxed as heavily as they would in terms of inheritance tax. Stonehaven is one of the most popular companies for equity release but it is not the only one in the market, which is why it is important to shop around for the best deal.




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You Have the Capacity to Switch and Remortgage Equity Release Schemes

Older homeowners are able to get their wealth by getting what they have in equity release schemes which are also known as lifetime mortgages or home reversion schemes. These schemes are especially attractive to those who have equity, but need liquid cash. When an individual uses their savings, or the pension fails to deliver as per expectations, one can request and apply for equity release through the property they already own.




Reasons why the demand is increasing: -




Equity experts have seen more elderly people using equity release to ease their financial concerns, since many of them are not comfortable with their current income. The cost of living has gone up, and they need to dig deeper into their pockets to finance their daily living expenses, which include energy, fuel, and food costs. Read More...


The Concept of Equity Release Schemes

It is essential to know the whole concept of equity release schemes before you venture in to the unknown. One of the main issues is to ensure that the financial providers you plan to use are fully regulated and the products they provide are fully compliant with the equity release market standards. These equity release plans permit you to release equity or tax-free money from your home without having the hassles of any monthly repayments. Many equity schemes are available to cater to your specific needs. But, each one of them comes with pros and cons. You should be fully aware of these before you consider the best equity release scheme to go for.




People over 55 years of age have financial issues which can be taken care of by an equity release adviser who knows all about lifetime mortgage schemes. Financial crisis and the need for money to fund the retirement years are making people believe more so in lifetime mortgages. This scheme allows you to release tax free cash from your home to spend or fulfil your wishes, without having any worries to repay them. The accumulated interest on per month basis on the life time mortgage loan is repaid in one large amount when the borrower dies, enters long term care or by selling the property earlier.




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The more2life Interest Choice Plan Can Help Your Children in More Ways Than One

The Interest Choice Plan is also known as an interest only lifetime mortgage which provides you with greater flexibility than a traditional roll-up lifetime mortgage plan. It can provide you with more freedom in both how you release your tax free cash and how you intend to repay it back. More2life Interest Choice Plan as with all equity release schemes places no restrictions on you spending the money in whatever way you wish. 




More2life now provides you with the option to pay the interest off monthly, so that a portion or all of the interest can be covered. With an optional contribution amount starting from £25 per month, you can decide how much you wish to pay. If you wish to repay some or the whole amount of interest for your lifetime mortgage, it can help in decreasing the amount you owe when the time comes and your property will need to be sold.




As a result, you will be leaving more inheritance to your loved ones which can be beneficial compared to the standard type of lifetime mortgage whereby the interest will roll-up, thus reducing the net equity in your property. For even greater flexibility, the more2life Interest Choice Plan provides you with the option to take further release(s), even after taking the initial lump sum. This is commonly known as a drawdown lifetime mortgage. However, more2life plans are now the first equity release provider to actually offer a drawdown interest only lifetime mortgage scheme. Read More...


Interest Only Lifetime Mortgage Plans

Taking out the right equity release plan can be one of the most important decisions you make in your golden years. If the rates are too high you’ll end up being ripped off; if the rates are low but the equity release scheme doesn’t meet your needs, you’ll still end up wasting money. Getting the right balance is critical, so it is no wonder you are stressed about comparing and ultimately taking out an equity release plan. This article and website compares two Interest Only Lifetime Mortgage plans, the Holmesdale Building Society and the More2Life Interest Choice Plan, and gives the low-down on what makes each of them what they are in order to give you a better idea of how each plan could work in your favour for releasing equity.




An interest only lifetime mortgage is like any other mortgage but with two key differences - there is no maximum term and you don’t have to pay anything back towards the capital until the end of the agreement and are only expected to repay the interest. So, if you are able to afford the interest payments, you can keep the mortgage until you die. This makes it ideal for seniors who want to continue staying in their home whilst enjoying the quality of life that they have worked so hard for.




More2Life Interest Choice Plan: Read More...


Is the Halifax Retirement Home Plan Still Available?

If you are wondering if the Halifax Retirement Home Plan is still available, the answer is yes and no. This plan was withdrawn to new borrowers in the market on August 17th 2011. It was a very successful home equity release plan where older borrowers are concerned. Through this plan, older borrowers were given the opportunity to borrow money without having to make any repayments except for the monthly interest charged on the loan. The money borrowed would actually come from the home. The Halifax Retirement Home Plan was a lifetime plan in that it ran until the borrower died or left his home permanently.




The reason why this plan is no longer available to new borrowers is down to Halifax itself. The company did not view the plan as a core product. It was seen as a very small revenue stream. This was probably due to the fact that the company did not really understand the needs of the retired market which was the target market for the Retirement Home Plan.




Another issue that Halifax had with this plan was that it did not meet the requirements of SHIP which is the Safe Home Income Plan. All equity release providers need to be a member of SHIP if they want to win the trust of retired home owners. This organization protects the rights of home owners who engage in home equity release. One of the conditions that needed to be met in order to obtain SHIP membership is providing a no-negative equity plan. This simply means that the home owner should not be allowed to borrow more than the value of their property. Read More...


Interest Only Lifetime Mortgage Schemes

In August of 2011, the Halifax Retirement Home Plan was withdrawn from the market. This came as a surprise to many retired borrowers since it was one of the few borrowing options they had available. This plan was quite a success amongst the older borrowers because of its “lifetime” nature. It gave them the option of releasing money that was invested in their home without having to make any repayments except the monthly interest charged by the provider. You do not have to worry though because there are other options including the interest only lifetime mortgage.




Halifax withdrew this plan because, in their opinion, this plan only represented a very small part of their overall mortgage lending. They did not see it as a core product nor were they able to fully understand the needs of the retired market so they withdrew this plan. This was actually not a smart move because this plan was a success amongst retired borrowers.




Retired borrowers do have an option. The Stonehaven's Interest Select Lite is an alternative to the Halifax Retirement Home Plan. This interest only lifetime mortgage offers retired borrowers the option of repaying some or all of the charged interest. This way they can choose an amount that fits their personal budget. There is however a minimum payment amount of £25 per month. The advantage of this plan is what actually makes it unique. It is a non-verification plan or a self-cert plan which means that Stonehaven does not require proof of income. The age and the value of the property are sufficient to determine whether or not the home owner is eligible. Read More...


Retirement Magazines Offer a Wealth of Information on Equity Release Schemes

Equity release schemes are now one of the most popular post retirement products purchased by most of the retirees in the UK. Buying an equity release scheme helps retirees get some of the cash value of the equity held in their home. Additionally, they can remain living there without losing their right to live in their home as long as they are alive. The market is full of a wide range of equity release schemes launched by different financial service providers; see http://equityreleasesupermarket.com.




Nowadays, retirement magazines are considered a primary source of information by a large group of prospective buyers who are planning to buy an equity release scheme. Most of the retirement magazines such as Saga magazine, Over 55, and others are now discussing more frequently the topic of equity release. These magazines have become the mainstream magazines for the retired population, although the growth of Internet has opened some more avenues that are now gaining acceptance amongst the prospective buyers. The growing market of Internet and online businesses has given birth to several retirement websites who are now providing good support on the subject matter of equity release.




Equity Release Supermarket is one of those retirement websites that is loaded with lots of useful and trusted information. The website of Equity Release Supermarket can be accessed by anyone by visiting the URL as follows - http://equityreleasesupermarket.com and then browsing through their wealth of informative pages. The quality of information helps the prospective buyers in framing their decision, so that they can buy the most suitable equity release that meets all their individual requirements. Read More...


How Equity Release Schemes Help Over 55s Improve Their Homes

The current level of inflation in the UK and the world in general has left many people struggling with the increased demand for money to improve their standards of living. Yet, they have just a little money at hand to put up with the same. Men and women above 55 years of age, the common retirement age gap, are more affected by this as they have less money coming in every month. In fact, the cost of living is increasing every day, homeowners want their premises to look more decent, and much more. Thus, the answer to compare equity release schemes so that you do not have to worry about your financial situation.




Equity release schemes have helped many over 55s access good amounts of equity that can help them improve the appearance of their homes by doing repairs, building extensions and generally improving the interiors and exteriors of their homes. Age doesn’t really mean that one should stop evolving in terms of lifestyle, so matching your living standards with the latest demands is really a key issue to consider.




It is a good idea therefore, to compare equity release schemes before you settle on a financial package that suitably benefits you. You can find a good equity scheme deal always with good interest rates and repayment terms. Depending on how much your home is worth, how old it is and how much it would cost you to get it into a better shape, you will fall perfectly into a deal that’s good for you.  Read More...


Statistics Show that Equity Release Schemes are Here to Stay

In 2008, equity release schemes were in their heyday. Yet, it was also this year that retirees grew wise and realised the products had some serious flaws which helped to bring about the mortgage crisis and the credit crunch that followed. It was a hard time after the recession when the whole economy was churned out but the equity release schemes are gaining back in value in the market once again. Today, the mainstream mortgage market is led by equity release schemes.




Equity release schemes allow people to release cash without moving out of their home. They have all the rights to live in their home as long as they are alive or plan to shift permanently to a long term care facility. Recent statistics have shown that there is a substantial increase in written equity release business. This statistic has also revealed that more and more people are willing to release the equity held in their property to live their post retired life in their own ways.




The equity release schemes are specially designed for people over an age of 55 years. It allows them to release the equity held in their property without moving out of it. Equity release schemes help old people to fulfil their unrealised dreams using the cash that is otherwise held idle in their property. Read More...


Variety Required for Equity Release Schemes to Find the Key to Market Success

A large section of the UK population is either retiring from work or close to their retirement age. They are looking for lump sum cash so that they could live their life in the way they like. Equity release schemes are one of the most feasible solutions that let them release the equity held in their property. New equity release schemes are coming to the fore and providing more flexible solutions for retirees. The key is to find the best equity release schemes that will work for you and your family.




Any good decision making process has its foundation in finding out as many alternatives as you can before choosing your best option. The same rule of decision making also applies when a prospective customer wants to find the best equity release schemes as a solution to release cash held in the equity of their property. Moreover, buying equity release schemes also allows them to stay in their home as long as they are alive or until they decide to permanently shift to a long term care home.




Innovation is the key behind the success to find the best equity release schemes and none of the equity release scheme providers have ever compromised in launching innovative products to lure the customers. The flexibility of options in their schemes acts as a catalyst in creating an increased demand from the customers. Looking at the history of equity release schemes, we found that most of the big successful market players have never failed to launch new and innovative products at a regular frequency. Read More...


Basic Understanding of Equity Release Schemes

The term equity release is used to refer to raising money in the way of capital or income against the value of a property. An equity release scheme enables a homeowner, mostly those aged between 55-95 who have paid off their mortgage or have just a very small amount left to pay, to exchange value in their home for tax free cash or income, without the option of repayment. There are basically three types of equity release schemes: lifetime mortgage, home reversion plans and drawdown lifetime mortgage. Usually, the UK property must be of standard construction e.g., brick or stone and have a minimum valuation of £60,000. To understand this fully, learn about compound interest calculator tools. The calculator helps you with the cost.




For those who qualify for equity release schemes, and are interested, then the first step to take is to calculate just how much capital you can release from your home, before deciding which of the schemes will suit you most. These calculations usually involve the use of a compound interest calculator to determine just how much your home can generate for you as income. You are however advised to seek the help of an expert, an equity release adviser to help you review your options and determine which scheme is best for you. The adviser will also help you with your calculations to this effect.




Your adviser will help you survey the market to search for the best option for you and return with feedback that he will discuss with you before you eventually make up your mind on which scheme to adopt and then proceed with the rest of the process. This person should provide a Key Facts Illustration which is usually a ten page document explaining the ’ins and outs’ of the recommended scheme such as the costs, charges and the rolled up balance in the future years. Read More...


Equity Release Schemes - Introduction to the Various Types

It's every person’s dream to have an enjoyable and financially secure life in their old age. Have you ever thought how it is possible to experience an enjoyable life after retirement? The biggest drawback is that old people cannot go out for work and earn their daily bread! Some try and maintain some form of employment, even charity work to keep them occupied and working that grey matter. This is why these people keep looking for a steady flow of income. Various equity release schemes, pension schemes, insurance plans or retirement schemes can assure them of a steady income in their retirement period.




However, investing time and money in other schemes and plans might not be enough. You need to have something more reliable. Equity schemes are an agreement that takes place between a mortgagee and the mortgagor. Such equity release schemes are best suited for people over age 55 who do not have too much concern as to the inheritance they are to leave their children from the eventual sale of their property.




There is a vast difference in principal between equity release schemes and normal bank loans. The amount originally released via an equity scheme will be repaid should the borrower either die or move into long term care such as a nursing home. Amongst all, the roll-up lifetime mortgage is one of the most common forms of an equity plan that assure repayment from your house value. As long as the borrower is alive, he still has full ownership on his property and can continue living there. Read More...


The Information Superhighway Now Empowers Equity Release Plans

Gone are the days when people had huge challenges in making financial decisions due to lack of information or knowledge. Today, thanks to technology, everybody can access all the information they want on the internet. They can learn, get entertained, and even do business using Information Technology. The retired population is even evaluating their financial future using this same technology, owing to a number of websites dedicating themselves to availing relevant support on finances. Simply click here to find out why.




Equity release has grown to become a household name today amongst retirees and other employees nearing retirement. Confusion surrounds which are the best equity plans and other financial options which have made a number of people think twice about the eventual steps to take. Resources have for long remained scarce and unreliable but today, that has changed significantly. For comparisons of the most suitable equity release schemes, click here.




After having worked all those years saving and investing in valuable property, the last thing you want is financial stress and hardship. This is why it is always advisable to get professional assistance about your next plan of action, more so when it comes to making plans for your future. As much as you’d want your finances to remain your own secret, it does no harm at all to learn a thing or two about what is best for you in relation to your current and future financial status. Read More...


How Much Equity Can Be Released with a Lifetime Mortgage

When considering equity release, one of the primary deciding factors for most people is how much equity could be released using a lifetime mortgage. There are a number of free online calculator tools which allow home owners to gain additional information about the equity release schemes which may be best suited to their needs. Many will advise the minimum or maximum amount of equity which could potentially be released, to allow home owners the information to make an informed choice.




 




How is an Equity Release Calculated? Read More...


Make the Most of a Lifetime Mortgage Calculator

Equity release can provide an excellent solution for a number of home owners with limited income and in need of a cash lump sum. However, the development of the equity release market has meant that there is now an amazing variety of different products and types of lifetime mortgage. Calculators are often provided on company websites to provide examples and figures to make your decisions easier. However, it is important that the calculators you are using offer the information for all your available choices.




 




Different Types of Equity Release Schemes Read More...


The Enduring Popularity of Compound Interest

Personal finance is a very popular area of financial services. There are numerous products and services available including equity release, which enable consumers to raise funds for a particular purchase, planning for the future or supplementing their lifestyle. The financial service industry is filled with service providers including accountants, brokers and financial advisers who are able to facilitate this type of finance. 




These products are regulated by the Financial Services Authority and designed to be beneficial through the use of compound interest. Compound interest is commonly used in a number of financial products from savings accounts through to equity release schemes, so it is important to understand the implications compound interest will have on your particular financial arrangement. An online compound interest calculator can be the easiest way to work this out.




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Equity Release Calculator

When considering equity release, many people will research familiar and established household names for product information from companies such as Aviva. Equity release calculator programs on these big company websites can provide accurate information but they may not necessarily provide the best option for you. Here are the top reasons why you should use an independent equity release calculator instead.




 




Independent means more choice: Unlike the Aviva equity release calculator, independent calculators will have access to a wider range of products. The Aviva calculator will only provide result information based on the Aviva product range. This is only a small portion of the whole market place and they may not offer the best possible deal for you. Read More...


Use an Equity Release Mortgage Calculator Before You Buy

Many people are confident in their internet researching skills and feel that they can find the best deals available out there. While this may be true when making a retail purchase, the equity release market is filled with numerous schemes and products which can be a little difficult to compare. Deciding to go ahead with an equity release scheme is a big decision and it is important that you have all the relevant information to enable you to make an informed choice. The equity release mortgage calculator is a useful tool provided by a number of brokers and companies specialising in equity release. It can prove invaluable to those researching equity release and it is imperative that you make use of this free tool before you make any decisions to buy.




 




There are a number of benefits and reasons why you should use an equity release mortgage calculator before you make any final decisions. These include: Read More...


The Home Equity Mortgage is Coming to Town

If you are above the age of 55 and are a UK homeowner, you could benefit from a home equity mortgage where you get the money in the form of a monthly payment, lump sum or a combination of both. The good thing is that the money raised through equity release is all yours and what you do with the cash is totally up to you. Moreover, the money is tax-free and you can spend it on anything you like including going on holiday, home improvements, improving your lifestyle and also the chance to clear your mortgage among other financial worries.




 




Reasons to use Equity Mortgages Read More...


Equity Release Mortgage Set Up Costs

An equity release mortgage is a way for you to raise money against the value of your home, which is basically a loan with no regular repayments. The provider which loans you the money will be paid back when your property is eventually sold. Such equity release schemes can provide you with a lump sum of cash as agreed upon or you can opt for a plan that gives you regular payments for income such as a drawdown lifetime mortgage.




There are two main types of equity release mortgage plans out there that you can choose from. You can either go with a lifetime mortgage or a home reversion plan. A lifetime mortgage is when you take out a loan against the value of your property but you still have 100% ownership of the property. The second option, which is a home reversion plan, is where you sell off part, or all of your home to a home reversion company. With this option you will have to give up part of or full ownership of your property accordingly. 




You want to find an equity release plan that will allow you minimal set up costs but that will give you a maximum pay out. After all, most people want to get the most out of anything they do in life. As it is a long term financial plan, you need to make sure that an equity release is a good option for you. Remember that it is a big commitment and it will also reduce the inheritance you leave behind for your family as your home will be sold to pay the loan. Therefore, the golden rule is to obtain the maximum facility, but only take what you need initially. This will decelerate the roll-up effect of the interest. This method is opposed to taking the full amount immediately & seeing the future balance run away with itself. Always get independent advice on this area as this holds the key retirement solutions to a better inheritance for your beneficiaries. Read More...


Equity Release Mortgages Boosted by Poor Health

There is one way in which the poor health of pensioners can be beneficial to them – equity release. Equity release schemes allow retired homeowners to release cash from their properties. More commonly, equity release mortgages are starting to take into account the medical condition of the person (or persons) applying for the mortgage to determine how much money they can take out of their properties. These enhanced lifetime mortgages are also commonly known as impaired life equity release schemes.




Many equity release providers including Aviva, Just Retirement, More2life and Partnership realize that pensioners with poor health have different needs than pensioners with good health and will therefore need more money to sustain their needs and to enjoy their lives with their family and friends while they are physically still able to do so.




The general rule is that the worse the health of homeowners, the more money they will be able to take out of their properties. Common health issues that are taken into consideration and that might result in a homeowners qualifying for more money include: smoking, diabetes, stroke, angina, cancer, heart attacks and Parkinsons disease or even just a minor issue such as being on medication.  Read More...


The World of Equity Release Mortgages

One of the biggest commitments you will ever make is in taking out a mortgage and then striving to repay it, eventually reaching the pinnacle of complete home ownership. It is perhaps the biggest investment too from both financial and emotional angles. A lot has changed in recent years within the mortgage industry and the new trends and rules are a result of what happened to the global economy back in 2006. In the United States, things started to spiral downwards and as a result, many markets around the world were largely affected. The house owners could not afford their repayments and financial disasters struck almost everywhere. For older individuals struggling with the loss of their financial retirement plan a necessary change needed to happen in the form of an equity release mortgage.




 




The Continuation of Financial Hardship  Read More...


Benefits of an Equity Release Mortgage

Many people are not aware that it is possible to get money from their homes without having to rent or sell them. This can be done by a procedure known as ‘equity release’ which helps people to get tax-free funds without needing to sell their home. After a person buys a property, the value of the home will hopefully increase over time, although this can be cyclical and currently the property market is at the bottom of this cycle. For key retirement solutions it is important to know all of the financial products available no matter where the housing cycle is at the moment.




 




Defining Equity Read More...


Two Different Sides to an Equity Release Mortgage

Most people at the age of 55 and above are eligible to receive an untaxed lump sum for their property by a lender via an equity release mortgage. This amount can be released in full or in stages according to the type of equity release plan. However, with either way it all boils down to the valuation of the same property and it future value does not matter whether the value changes or not. The amount agreed as the interest rate during the signing of the contract by both parties stands fixed for the entire period from the release of equity.




An equity release mortgage is classified in several sections depending on the lender and the age of the borrower. A borrower might be planning to use the amount received for their property to develop another property elsewhere or to facilitate another property purchase. 




The reason why the age of persons seeking equity release is prominent is because the lender wishes to cash in on the property at a time when the last person has died or moved into long term care. Its value at that time of sale could remain similar or has appreciated with time. The value of property must be realized in full upon taking over of property ownership by the lender, whereby profit will be in terms of interest paid by the borrower to facilitate the mortgage. Read More...


Your Guide to an Equity Release Mortgage

Have you been thinking of taking out an equity release mortgage lately? Well, it will be best to consider what your options are and also why you really need to make such an important move. What an equity release schemes does is to enable home owners to get money from the present value of their homes but still giving them the opportunity to live in their houses for many years and until death or moving into a residential care home.




Due to the increase in many homeowners considering equity release schemes, there have been many equity release plans introduced into the market that have been designed to make the process easier for all homeowners. Over the years, there have been many publications in the UK that have considered equity release mortgage plans to become an essential of the kit bag for retirees. Lately, even the general press have now succumbed to the realization of how important they are in stimulating retirement for many. There is also the spin offs such equity release schemes have in helping local economies & tradesmen with the additional work they generate through home improvements & extensions.




Calculating your Choices Read More...


How Does a Home Equity Mortgage Work?

Home equity mortgages are gaining popularity and in this post-economic credit crunch, they are proving a safer bet for most homeowners. This would be for those who would like to make an additional borrowing application which may be for debt repayment or other financial emergencies. Reasons for raising extra cash may be as simple as home improvements such as a new kitchen, bathroom or eco-friendly car, which can save the family money over the longer term. However you look at a home equity mortgage, you must understand what it stands for and how it will live with you for a very long time. Therefore, you must ensure that the home equity loan selected fits in with your finances now, and is adaptable to meet your demands in the future.




A home equity mortgage can be beneficial whereby the borrower uses the equity in his or her home as collateral has become popular; however, it comes with certain requirements like having a good credit record, being over age 55 & own a property valuation of £70,000. These are 1st legal charges on the property and in most instances equity release lenders will not allow a second mortgages on the property.




While it is true that you can have money readily available for you through equity mortgage, the fact remains that there is a lender and you are the borrower. As a borrower, certain obligations fall on you to repay the money and in the event that the value of the property decreases, you incur a risk of having to pay the excess in the event that your equity on the property cannot cover your debt. Negative equity has risen again with recent property values falling. Interest may also be higher on the equity mortgages such as equity release schemes than on the initial mortgage. This would be due to the fact there is more risks associated with them and their interest rates are based on long term interest rates, rather than short. Read More...


An Equity Release Loan Can Pay Your Bills

The pending bills may be a reason behind your stressful life, especially after your retirement. After retirement, there is no regular source of income but the expenses remain the same. The bills against the daily expenses don’t stop piling up on account of your retirement and if you don’t pay your bills on time then the situation may worsen in the future. The source of income may have ceased but not the expenses. Thus you have to find a solution to your problem such as equity release loan choices.




Worsening the Situation




The situation worsens when the amount of your pending bills starts growing due to the interest levied by your creditors. Interest from the creditors on your pending bills may grow like a big monster carrying a high potential of claiming your complete estate one day. It is better to pay your pending bills before the situation slips out of your hand. Read More...


Equity Release Loans can Consolidate Your Debts

Are you cash poor, but asset rich and wish to do something about it? Equity release helps you tap into your property. Equity release can be a source of additional income or for you to do something useful out of the property which is not giving you any returns for now. Equity release is basically designed for people who have high value assets, but low incomes. This scheme is becoming very popular among pensioners. You can now safely release money from your property and spend it on all that you desire through equity release loans.




How can you use equity release money?




Now that you have the equity release money in your hand what all can you do with it. One of the most important uses of this money would be to clear all your debts. You can pay off your basic home-related bills and even settle all the different loans that you ever had. Rates on equity release loans currently average around 6%, which compared to credit card & personal loan rates is considerably lower. The other best use could be to help your grandkids with their study options. With the cost of education going sky high these days, using the money from an equity release would be one of the easiest ways to handle this problem. Read More...


Find the latest Lifetime Mortgage Deals

A lifetime mortgage works with the lender offering a lump sum or a monthly income or even both of these. The sum or income is based on the property value and the client's age. Interest is charged with the loan, however the customer is not required to pay it. What actually happens is the interest is compounded on the loan. Once the property is sold the interest that has accumulated and the loan are paid for. Understanding equity release deals is important in order to decide if they are truly the product for you. 




Risky Interest with No Negative Equity Guarantee




There is a risk that the interest and loan could be larger in price then the value of the property. However an incentive with most providers of lifetime mortgages is that they offer a no negative equity guarantee. This means that if the loan is larger than the property value it becomes the problem of the lender and not the problem of the home owner. This is a superb clause to have in your contract. If you do not see it you will want to ask for it so that you are not ultimately putting your family in a difficult position. In past years without the clause many companies came under fire from their clients enough that the government started taking notice and started to regulate this arm of mortgages a little better.  Read More...


The Best Equity Release Deals are Just One Click Away

A lifetime mortgage is a loan from an equity release providers, where you do not have to sell any portion of your house in return for a lump sum of money. The lifetime mortgage operates like a conventional mortgage with one major difference. You lend money against your property, interest is charged every month however you do not need to pay any of the interest back on your policy. Instead once your property is sold due to death or having to move into long term care, the loan is paid and the interest with the money generated from the sale of your house. Searching for the best equity release deals is helpful to ensuring you get the right product for your situation.




Interest Rates Assessment




The interest rates that are charged and the deals available will vary from provider to provider. This means that you will have to shop around for the best equity release deals that are around. However, you should never just go with the provider that is offering the best rates. You will need to look at the plan options and flexibility as well. This is because you will need to make sure that the equity release deal is suited to your needs and to check that there are no hidden costs. Read More...


Lifetime Mortgage Deals

Now that equity release is no longer a foreign term for us, we can start to look at all the different options available for elderly home owners. As you know equity release is done by borrowing from the value of your home. You cease monthly payments on your mortgage if you decide to repay it with any new lifetime mortgage deals.




It can be received as a one off lump sum, or via flexible withdrawals from a reserve facility, or a combination of both. The basic idea remains the same, as elderly couples can receive a capital lump sum and maintain ownership of their property. The only difference is when it comes to paying the loan amount back. This is not paid by the homeowner, but depending on the different equity release deals available, the amount left as an inheritance can differ greatly.




  Read More...


Getting the Real Deal on Equity Release

When it comes to calculating the real value of your property and the amount you can get from a lender, it can be quite confusing. There is no clear path to calculating the exact amount you can receive for your property even with the most modern calculators. What you can get is just a mere approximation which may sometimes disappoint you or favour you. Periodical valuation of property by markets makes it difficult to analyze the real amount worth a home or any property. This is extremely important when trying to find the maximum equity release lump sum from a lifetime mortgage. 




It is the dream of every home owner seeking equity release to get the maximum value for their property but attaining that fete can be quite a challenge. To obtain maximum equity release lump sum for a property is by luck rather than it is by calculation. Unless you are so good with anticipation and projection, home value keeps changing, appreciating and depreciating.




Methods for Getting Good Equity Read More...


Sourcing the Best Equity Release Deals

Most home owners whose monthly income may not be sufficient to meet their daily needs during their retirement are not aware that they can obtain or release equity or money that is tied up in their property. An equity release scheme makes it possible for them to do so which is why an equity release scheme can prove to be very beneficial to retirees. Their property, which is used as collateral, is the basis that a retiree uses to qualify for an equity release scheme. The home owner can obtain a loan against the property via a lifetime mortgage scheme, or they can also choose to sell the property with a home reversion plan, either way generating an income for themself. Continue to read or select the click here option to determine more information about certain plans. 




Using the Equity Release Sourcing Tool




There are many different equity release providers on the market which is why you need to be able to compare the pros and the cons of each one if you are to choose the best provider with the best scheme which will be able to meet your needs. Equity release sourcing tools are the way to go about doing this. Read More...


Youre on to a Winner With the Latest Equity Release Deals

Equity release is becoming a popular product for those who are planning their retirement. Equity release schemes are flexible and are there to provide either a lump sum of money or an extra income each month. Equity release schemes are aimed at the ages of 55 and over. Equity allows you to release the money that may be trapped in your home. You have the choice of a home reversion plan which is where you can sell part of your home in return for money. The money is recouped when you die or go into long term care and your house is sold. Compare equity release schemes to determine the best possible outcome for you and your situation as you have more than one option.




The other option is a lifetime mortgage. Money is given out as a loan and is paid back once your house sold. You also have the option of paying back some of the loan through your life depending on the type of lifetime mortgage that you choose. As equity release is popular providers are now offering special deals for you to take advantage of. 




Compare Equity Release Schemes  Read More...


Interest Only Mortgages for Individuals Over 55

Interest only mortgages can often prove to be the ideal financial solution for many individuals and couples over the age of 55. An interest only lifetime mortgage can be chosen to help stave off financial troubles, especially those related to increasing debts.




An interest only mortgage is part of a home equity scheme that enables the borrower to pay off only the interest accrued on the mortgage. There are a couple of things that are most important to keep in mind when considering an interest only mortgage. The two biggest things to take notice of are the interest rate and the total amount that is being borrowed. Because interest rates can be variable, they can often get somewhat out of control, leaving the payment much higher than originally anticipated.




The specific mortgage known as an interest only lifetime mortgage is often a great solution for those individuals and couples over the age of 55 or even in retirement. For these folks, an interest only mortgage is one that will factor in the age of the borrower(s). This kind of mortgage allows the borrower to take out an interest only lifetime mortgage to help release the capital that was previously invested in their property and unavailable as cash flow. This capital can then be used toward other debts, financial responsibilities or lifestyle changes. This kind of interest only mortgage can eventually impact the inheritance of the property, but this can often be controlled through very specific products, such as the Stonehaven Interest Select Plan. Read More...


Paying Off a Current Mortgage with an Interest Only Mortgage

We all hope to own a home someday, but sometimes we need products like interest only lifetime mortgage loans. Some of us are financially able to purchase a home while some of us need to take a mortgage out in order to acquire a home for us and our family. Some of us still are able to acquire a mortgage early in our lives and others acquire a mortgage later on in their lives.




The later we acquire a mortgage the more chances there are of us still having a mortgage to pay off in retirement. Paying off a mortgage in retirement can be really difficult, especially based on the fact that retirees no longer have a steady source of income. To these people, an interest only lifetime mortgage can offer a lifeline. An interest only mortgage can help them to repay their mortgage especially if they need to repay it at short notice. 




Research Indications on Mortgages Read More...


Equity Release Mortgage Set Up Costs

An equity release mortgage is a way for you to raise money against the value of your home, which is basically a loan with no regular repayments. The provider which loans you the money will be paid back when your property is sold. An equity mortgage can provide you with a lump sum of cash as agreed upon or you can opt for a plan that gives you monthly payments as a regular income.




There are two main types of equity release mortgage plans out there that you can choose from. You can either go with a lifetime mortgage or a home reversion plan. A lifetime mortgage is when you take out a loan against the value of your property but you still have ownership of the property. The second option, which is a home reversion plan, is where you sell off part of your home to a home reversion company. With this option you will have to give up part of or full ownership of your property. 




Consider the Costs Read More...


Benefiting From an Interest Only Mortgage After Age 60

An interest only mortgage is often a sound financial decision for many couples who are over the age of 60. This is a mortgage that can be taken out to help raise the amount of money a borrower needs, but only requires monthly payments that cover the interest element on the loan. This essentially means that the borrower is protecting the overall value of their home, while keeping a little extra money in their pocket each month. This money is often used to pay off debts or other financial obligations. The interest only mortgage for the over 60s is a sound way to make an investment on your future, but there are also different deals on the table. 




There are several benefits to an interest only mortgage for the over 60s. One of the most noteworthy of these benefits is that the capital value of the home is sustained and only interest is being repaid on the loan. Therefore, there can still be some inheritance left for family members. This is because once the couple or individual has passed away, it is not necessary to sell the house to meet the obligations of the loan. A second major benefit is that the home is still owned by the borrower. Therefore, the borrower(s) can still be away from the home for as long as they like.




Understanding the Repayment Read More...


A Look at Interest Only Mortgages

There are various types of equity release plans all of which come with different terms, sometimes only slightly. They are all modified for senior citizens especially retirees who have attained a certain age and own homes or assets which can be turned into equity. The idea is to obtain money from a lender in exchange for a home without vacating, with the projection that the lender will take title of the home after your death.




Plans range from lifetime mortgage, interest only mortgage, and income mortgage which all carry special revised terms. A borrower may opt for a plan which will give them a large amount of cash to use in exchange for the home in which they live, or may choose a plan which entitles them to a monthly income flow until their death. All these plans have one thing in common: they are all deemed complete in death, and that is the only time when a lender can claim a property.




Typical Lifetime Loan Terms Read More...


The pros and cons of an Interest Only Lifetime Mortgage

Thinking of getting an interest only lifetime mortgage can seem to be a good idea when you are trying to make the best of your retirement years. With interest-only lifetime mortgages, borrowers have the option to pay only the interest and not the whole capital amount back.




If you have chosen a plan that will still give an approval to the mortgage interest only equity release plan, you have the option of only paying interest to the lender for the full term of the loan, at the end of which you would owe exactly the amount you borrowed. Obviously to reach this goal of maintaining the same balance of 




The interest-only lifetime mortgage scheme contains many advantages such as people can now afford cheaper mortgage repayments in times of financial hardship. This loan is considered to be flexible enough in that it provides applicants with their own choice of repayment vehicle. There is an option of repaying the mortgage early any existing investments prove a success or could downsize in the future if their existing property becomes too much to manage. An interest only mortgage can be a cheaper option than selling up as an option and deciding instead to rent a high value property. Read More...


What Options Do I Have to Pay off an Interest Only Mortgage?

Interest only mortgages are fast becoming one of the most popular news items in the tabloids. With daily updates from lenders amending their terms and conditions, the interest only loan is becoming a rare breed of mortgage lending. It all started with trouble in the 2000s with the banks and their mortgage practices. Things got worse due to misunderstandings and many people losing their homes. 




As the name suggests, an interest only mortgage will require you to pay only the interest part of the loan in monthly instalments. This will be for an agreed period of time. At the end of the term, you will have to pay the entire capital amount minus the interest. 




In an Interest Only Mortgage you only have to pay the interest of the loan, therefore, it will work out cheaper per month on this scheme as opposed to a usual mortgage where you would have to pay off the interest plus part of the capital per month. This is mostly preferred by people who can’t make the monthly payments of huge amounts but have an investment which will give them a large sum at the end of the agreement. Interest only mortgages are ideal for people who are absolutely sure that they can make the payment of the entire capital at the end of the loan period from their own means.  Read More...


What is an Interest Only Mortgage?

Mortgages have gained immense popularity among the people these days with the number of loan options they offer. The interest only mortgage loan is one of the best options in terms of mortgages. But what is an interest only mortgage. Here you will be paying only for the interest part of the loan for the initial few years. This will help in reducing the monthly payment of the mortgage for the first few months. However, it will be recovered by the lender during the later stages of the loan payment. 




Answering the Question in Detail




What is an interest only mortgage and why it is popular is one question in the mind of most people. As the name suggests, the interest only mortgage will involve the payment of the interest part only. This will help in reduction in the total monthly instalments to be paid initially. The later years will require you to pay a larger amount, this way the loan amount and the interest on the loan will be adjusted. In other words interest does not add onto the loan, yet the principle balance of the loan still remains at the end. Typically it takes 10 years. You pay interest for 10 years and then a balloon payment is made. Read More...


Interest Only Mortgages Help Us Finance Our Housing Dream

Owning your own property is definitely something that most people in the comparison aspire to. There are over 11.2 million loans at the moment, according to the Council of Mortgage Lenders. This means across these mortgages, there is £1.2 trillion invested in mortgages. It is clear that getting a mortgage is still popular among the UK population because it is not only a sign of financial stability but it creates a strong foundation for the future. With numerous options including interest only lifetime mortgage there is no shortage of products either.




An interest only lifetime mortgage is one compare that more elderly buyers are researching into so that they can have plenty of options available. The unique feature of these types of pensioner mortgages is the interest rates are fixed, which means they do not fluctuate. This is perfect for retired people who are on a tight budget and can only allocate a certain amount each month to paying back their mortgage. It should be mentioned that not all come with . You need to look for the term “lifetime” to ensure the interest only loan is a fixed interest rate.




The Particulars of Interest Only  Read More...


Why Arent More People Considering a Pensioner Mortgage?

People are still weighing up their options after the 50% tax levied on high income earners was revised, and bank base rates increased too with a few lenders such as Halifax. Everyone is literally looking for the best option to evade the tax man by assuring themselves a better future free of taxes. One ideal way of ensuring this happens is through early retirement, but the most commonly used trend is a pensioner mortgage. Experts are not very much for these plans but they remain popular options to some individuals due to the significant tax breaks they enjoy.




Pensioner mortgages are still available, albeit limited, to those in retirement and what better borrowers could a lender wants? They have more equity, better credit history and treat credit with respect. People under retirement age generally are not so careful, so why don’t lenders offer more options for someone who needs a equity release maybe? Definitely lenders will have their interests at heart before executing any  plan and that remains a fact.




Interest Only Pensioner Loan Read More...


Threat for Pension Mortgage Holders

The word Mortgage is often used to refer Mortgage Loan for buying a real estate item from a lender; mostly a bank. Here we will discuss pension mortgages which are a common interest-only mortgage type mostly common in United Kingdom.




A Pension Mortgage borrower is only subject to a payment of interest only throughout the lifetime of mortgage. Does not it sound too good to be true? The fact is that all pension mortgages can be backed with an additional investment plan in the form of borrower’s personal pension; a stock market based investment subject to tax exemption and tax relief at the end of the retirement. To be precise, a pensioner will gain two things at the end of his retirement. Firstly, a lump sum handsome and tax free amount called personal pension, which is mostly used to pay off the mortgage at the end of the retirement. Secondly, a monthly taxable income which the pensioner might use for his survival for whatsoever life he has left! However, since the 2014 budget, the compulsory nature of buying an annuity with the remaining 75% is under scrutiny. Particularly, the rules for personal pensions & occupational money purchase schemes have seen a sea change!




Maybe a resurgence in pension mortgage will now be seen given the fact that someone can take the whole pension now as a lump sum, but subject to taxation. Read More...


Do Halifax Still Offer Mortgages for People in Retirement

If you already have a mortgage taken out with Halifax before you retire, the company will take into consideration how you will afford the mortgage once you retire. All mortgages agreed to by Halifax must now end before you turn 75. However, the Halifax equity release retirement mortgages under the Halifax Retirement Home Plan have been withdrawn as of 17 August 2011. This means that Halifax now only provides interest only mortgages under their traditional mortgage book.




The Halifax Retirement Home Plan was a service provided for Halifax retirement mortgages schemes. This product was a form of lifetime mortgage specifically geared to retired people with sufficient pensionable income. Customers who have an existing Halifax Retirement Home Plan are still able to move homes under these Halifax retirement mortgages and are still able to borrow additional money if they meet the designated criteria. The difference now though is Halifax no longer providing advice on existing plans. This is now outsourced to Scottish Widows & their range of schemes which have left some customers frustrated.




As an alternative to the previous Halifax Retirement Home Plan, new customers can choose to take out Halifax retirement mortgages in the form of lifetime mortgage schemes with alternative lenders, which are very similar to the Halifax Retirement Home Plan. Such specialist lenders are sure to emerge on the back of the success of the Halifax's pensioner mortgage Read More...


Why Retirement Mortgages Look Good for the Future

Retirement mortgages have turned out to be one of the most popular trends in mortgage purchases because older people are logging online to research what is the best retirement package for them. There are many reasons why a retirement mortgage looks like good option for people who are focused on property. 




A retirement mortgage is essentially a mortgage taken out during retirement that a customer can opt for because of the benefits and advantages that it has. Here are some that we have highlighted below:




Inheritance tax: Getting a mortgage in retirement can help you if you want to leave your family something after you die. Retirement mortgages staunch the loss of equity that could come because of inheritance tax that your family or individuals you have named in your will could pay. A mortgage in retirement can help to take the pressure off inheritance tax which is something that many mortgage owners and their families think about. The reason why retirement mortgages stop the pressure is because on paper, they make the value of the property seem like it is worth less which means that the people you leave your home to pay less inheritance tax. This is ideal if your home is a family home that you or your loved ones do not want to sell in the near future.  Read More...


The Difficulties of Obtaining a Mortgage in Retirement

Obtaining a mortgage in retirement can be very difficult based on the fact that retirees have low income that may be just enough to finance their daily costs of living but not quite enough to repay a mortgage. Many lenders find it too risky to offer mortgages to retirees, more specifically to those who are sixty-five and older. 




There are however a few lenders who do offer a mortgage in retirement. However, there are a number of factors that these lenders consider before agreeing to offer a retiree a mortgage. Some of these factors include the income, the credit history, and cosigning possibilities. Many lenders will base their decision on whether or not the retiree has a fixed source of income such as from a social security or retirement plan that can be used to pay off the mortgage. Having just one source of income may not sufficient to qualify a retiree for a mortgage as that it may not be sufficient to finance his daily living expenses and to repay the mortgage which means that he will need additional sources of income if he wants to obtain a retirement mortgage. 




Most lenders will want to see a credit history of reliable payments made for recent debts. This will make it much easier for the mortgage to be approved. A guarantor is someone who takes over the responsibilities of a mortgage if a retiree can no longer make the payment. Lenders are more willing to offer mortgages to retirees who have a guarantor as that the risks are reduced.  Read More...


Mortgage in Retirement

There are a number of reasons which can justify a mortgage even before one attains retirement age, for example health related issues, problems with employment among others. Mortgages exceeding into the retirement period are sometimes complicated in that they are not clear about their affordability and their life spans. Lenders will in most cases reject mortgages which are likely to run beyond the age of 75, giving many willing borrowers a lot of headache. You may believe that retirement mortgage is impossible or not for you - read on and discover why it could be. 




The Answer to your Needs




What potential borrowers will wish to know is how they can be allowed to borrow even at their tired ages. Again, it all depends on how affordable it is and also how the mortgage will be managed. Some factors like retirement benefits as well as other available sources of income will be considered beforehand. Lenders fear that some borrowers cannot sustain retirement mortgage due to lack of resources, so they prefer not to take any risks. Read More...


Can a Pensioner Still Get a Retirement Mortgage?

Pensioners today are facing serious challenges when it comes to just remaining afloat in the current economy, while trying to get a retirement mortgage becomes even harder. Actually, thousands of pensioners on interest only mortgages risk losing their homes as they have no means to pay at the end of the term. With options reducing rapidly, financial experts warn that the UK may soon face another mortgage crisis. But where did it all start, let’s find out.




History of Trouble




About 5 years ago, mortgage lenders were willing to offer loans to retirees. However, new rules meant to avert another financial crisis have seen mortgages for pensioners virtually disappear. Most of these retirees are well educated and well-informed people with clean credit history, but their circumstances dictate that they have to borrow for another couple of years before they can call it done. Read More...


How to Find a Mortgage for Someone Aged 60 Plus

Finding a mortgage for older people in or approaching retirement was a near impossibility until very recently. However, thanks to a change in the social and economic climate the situation has changed enormously. Today, it is possible to find a pensioner mortgage to suit a range of clients. So what has brought about this change? And how can we go about finding the most suitable retirement and pensioner mortgages?




Discovering Mortgages




With the growing situation in which retirees do not have enough cash there are a host of online websites springing up for comparison tools that make it easier to plan for your retirement. You can begin by looking at independent comparison sites to help you discover mortgages as a pensioner.  Read More...


Where Can I Obtain a Pensioner Mortgage to Help Purchase My New Retirement Home?

As you enter your retirement you might be considering spending a portion of every year away from the harsh British winters enjoying winter sunshine in a destination such as the Canary Islands or possibly even further afield in Florida. Retirement is a stage of your life to enjoy to the fullest and ensuring financial security will allow you to do this to the fullest. You have many options such as the interest only lifetime mortgage scheme that provides funds for your fun.




One way that you may be able to realise your dream of buying a retirement property overseas is by taking out a retirement mortgage on your existing property in the UK or even equity release scheme which would allow you to access a cash sum from the equity within your own home.




Reputable Traders of Lifetime Plans Read More...


Factors to Consider before Taking a Mortgage into Retirement

Having a mortgage in retirement can be very strenuous when it comes to final repayment because in most cases there is a drop in income when retirement arrives. This is the major reason why most people consider repayment of mortgages before their retirement to avoid battling with financial matters when they are supposed to be relaxed. However, even in light of the above, these mortgages are still a big possibility especially now when financial institutions are constricting their sale due to FCA intervention.




Planning Retirement and Mortgages 




When you are considering taking a mortgage in retirement or at least having it paid off before retirement, there are a few questions that you will need to evaluate. The first thing you should think about is how the mortgage will help you in terms of benefits. The interest rate that you are likely to receive by securing the mortgage should dictate the entire process, because failing to plan may come with irregularities. Read More...


The Scary Term: Mortgage in Retirement!

If the three words mortgage in retirement send a chilling shudder right down the length of your spine, it may well be worth your while to read this article and find out how this can actually be a very welcome idea for people that have gone past the age of retirement.




You see, when we say mortgage in retirement, we do not mean that you will still be paying off the cost of your property when you get past the age of 65. No, instead, we mean that you could actually benefit from some income and this is borrowed against the equity that you hold in your property.




So, now that you are starting to relax a little more - read on to find out how this works. The proper term for this type of equity plan is a lifetime mortgage. This basically means that you can borrow a certain percentage of the equity of your property (varying with age) and not have to worry about it until the unfortunate time of your death. Read More...


Surely I Cannot Have a Mortgage in Retirement?

This question lingers in many people’s minds, especially those closing on the 55 year mark, as many people at this age are only worried about owning a house. Having a mortgage during your retirement comes with variable advantages and disadvantages. This is the reason why you need to evaluate your options well before you retire on when to clear your mortgage. Here are a few points to consider before you can make a solid decision on mortgage repayment or gaining a new mortgage in retirement. 




Benefits and Cons of Mortgages for Retirees




The benefit of having a mortgage in retirement is clear. The first benefit is that, during your retirement years, you have fewer expenses to handle. This means paying for your mortgage will be easier. However, this is greatly dictated by the amount of money you have in your bank account, or on our pension income. If you have enough cash in your bank accounts, it will be safe and easy for you to pay off the mortgage at retirement.  Read More...


The Value in Mortgages for Pensioners

If you have reached the age where you can retire or you are planning for your retirement, it is crucial to think about what mortgage platform can be right for you. Mortgages for pensioners have specific advantages among some of which include the following:-




Added choice: The Council of Mortgage Lenders, the trade association for mortgages in the UK found that at the start of 2012, there were more than 25,000 remortgage loans being taken out. Remortgages are one type of mortgage that pensioners can choose because they give people more choice over how to use cash raised from the mortgage deal. This is ideal if pensioners are looking for ways to increase cash in their financial portfolios, or if pensioners want to help to create some sort of liquidity for their family members. 




Repayment clause: The golden question you should be asking yourself is does the mortgage lender want repayment? Pensioners need to look for good deals on repayment or even some mortgage deals do not have repayment included in them, in which case this is something to seek out with the help of a financial adviser.  Read More...


Advantages of Remortgaging Your Old Equity Release Plan




The world is changing fast and so do the prices that we pay. It would have been nice if our salaries grew accordingly, but sadly this is not the case. Just imagine if you could get more money from the things financial firms  and services that you sold or provided in the past! Well, the good news is that you can actually do that with your property. With a normal equity release plan, you can actually still squeeze a considerable sum of money from your existing property on top of what you already received or are scheduled to get. You also have equity release remortgage, which is available for individuals that already have a mortgage and wish to pay off with a new loan.




Studying the Terms of Remortgage

Despite all the obvious pros of re-mortgaging your property at more advantageous terms you shouldn’t get all starry-eyed. Study the offered contract, look for hidden catches in the wording and make sure to calculate whether the whole deal will turn out more profitable in the long run - let’s say in 5-10 years from now as that intricate percent calculations may even leave you penniless and with debts up to your neck. As a result, you might become homeless instead. Consider the new set up costs and any potential early repayment charges from your existing equity release company.  Read More...


Market Review of the Stonehaven Interest Select Lite Plan

Equity release plans have been on the market for many years now and have proven to be a good solution particularly for many people that want to ensure the safety of their last days. The protection of inheritance can sometimes be tricky so always be sure you know what decision you’re making in the case of mortgages. A Stonehaven Interest Select Lite Equity Release Plan may be the best answer to your problems, seeing it is effective, while also providing for all the customer care you may need.




Stonehaven offers four options on its interest only lifetime mortgage products; the Stonehaven Interest Select Lite and the Interest Select, the Interest Select Plus and the Interest Select Max.




Stonehaven Plans Read More...


Consider an Interest-only Lifetime Mortgage

An interest only lifetime mortgage is like a regular lifetime mortgage, except that you will have to make monthly payments. Once you pass away the loan is paid in full. In order to find out if you can get an interest-only equity release, contact lenders such as Stonehaven




Finding and Applying for Help




When it comes to applying for an interest only lifetime mortgage it may be difficult as a lot of lenders do not offer them to retired people. By finding the right lender, you may become fortunate enough to find one. One way to find an interest-only lifetime equity release is by searching over the Internet. Locate an equity release website that allows you to compare schemes from several companies.  Read More...


Interest Only Lifetime Mortgage Inheritance Protection

The moment you enter into a lifetime mortgage plan, the amount of inheritance you can leave behind for your beneficiaries will be reduced. A mortgage provider gives you money based on the agreement that once you die or permanently move out of your home, it will be sold to repay your debt. Based on the amount that you owe the supplier, the sales proceeds from your home may only be sufficient to pay the provider leaving nothing left over for your beneficiaries.




So if you are concerned that your lifetime mortgage plan will prevent you from leaving an inheritance for your loved ones, you should look for a provider who offers an inheritance guarantee. Equity release providers who offer inheritance guarantee are guaranteeing you that when your home is sold, a portion of the sales proceeds will go to your beneficiaries.




The Specifics of the Guarantee Read More...


All Lifetime Mortgages Explained

Equity release allows elderly individuals or couples who have retired and own a property to use the value of their property to receive a monthly income or a large tax-free lump sum of cash without selling them. Many elderly individuals are in the plight of living with a very low income in spite of owning properties of much higher value, equity release helps in providing them with the cost of their property without actually selling it. The company providing the service takes away the property only after the individuals die or they move in to care. These kinds of plans are beneficial for some people while others feel it as an inconvenient compare car insurance. The following is lifetime mortgages explained in detail to help you make the right decision.




Lifetime mortgage is a form of equity release which is the most popular product as this scheme allows the property holder to stay in the property until he wants to leave or until he passes away. This scheme provides the individual with a lump sum of money equivalent to the value of the mortgage calculator or else provides a regular source of monthly income. The company offering the service charges interest on the money that they are lending and it is added up as a compound interest and only repaid once the owner has died, so no monthly payments are required. 




Alternatives to Lump Sum Payments Read More...


A Lifetime Mortgage for Retirement

The fact is that there are many retired people who live their lives with insufficient pension. Due to the fact that they have a minimum amount equity release of savings, they are unable to fulfil their realistic likelihoods. This can be really annoying and frustrating for a retired person. They can be more stressed out if they have funds tied up and they fail to produce greater benefits in their pocket. A lifetime mortgage can be the solution. It is a way to release some of the capital that is tied up in the property of a retired person. An equity release mortgage is one of the best ways to borrow without having to repay immediately. 




How it Works and How to Use It




For many people, a lifetime mortgage is the best way to release equity from their property by obtaining a loan from an equity release provider. Basically, that money is released from the property to help them to improve their standard and quality of life. The funds released from the mortgage may make it possible for a retired person to afford a brand new motor vehicle, to make home improvements, to go on a vacation of a lifetime or to make house alterations. The released funds can also support the children of the retired person with her or his first house. The needs and demands for the released funds can be limitless.  Read More...


Understanding a Lifetime Mortgage or also known as a Reverse Mortgage

A lifetime mortgage is also known as a reverse mortgage in some countries and is available to those who are in retirement and who own a property. It is a loan that is obtained against the property and is paid to the borrower as one large payment or multiple payments for the rest of their life. The terms and conditions of a mortgage are quite interesting in that the borrower equity release does not repay the loan during their lifetime.




Repayment of the Mortgage Product




The loan is repaid on two conditions – when the borrower and his partner die or when they decide to leave their home and move into a care home or with relatives. Their home is then sold to repay the lifetime mortgage provider.  Read More...


Releasing Equity for Mobility with Lifetime Mortgages

People who own a property with little or no mortgage have what is termed as ’equity’. Equity can be calculated by subtracting the mortgage amount from the value of the property. If there is no mortgage on the property, the total amount of equity that the homeowner has is equivalent to the value of the property. This equity is tied up in the property and can be accessed through the process of equity release. Consider releasing equity for a stair lift or other important need you have. 




Common Equity Release




One of the most common forms of equity release is the lifetime mortgage. The lifetime mortgage is a loan that is secured against a property. This mortgage does not require any repayments during the lifetime of the homeowner. It is normally repaid when the homeowner dies or is no longer capable of remaining in the property. The property is then sold to repay the initial loan amount and the accumulated interest. Read More...


The Definition and Types of Lifetime Mortgages

There are many things that you can use a lifetime mortgage for but first you must know what is a lifetime mortgage. A lifetime mortgage is a home equity loan whose main purpose is to unlock cash for homeowners to spend as they wish. It is usually provided to people over the age of 55. It is a complicated financing option and should be taken with proper advice of a qualified, independent financial expert.




The question “what is a lifetime mortgage" is common among equity release people who are looking for a steady source of financing over long periods of time. There are several types of lifetime mortgages which people may choose from. The first type is known as a standard lifetime mortgage. In this type of mortgage you are given a tax-free amount of money in lump sum. The uses of this money are completely up to you.




The main features of this type of mortgage:  Read More...


Lifetime Mortgage Explained

Equity release is a relatively new term in some countries, but it has been very successful in the UK and some other countries over the last fifteen years. It is intended mainly for people or couples that are retired and do not wish to leave all their property as part of an inheritance. Elderly home owners are opting for equity release on lifetime mortgage as a means of maintaining their property and getting a monthly income when they can no longer afford to pay their mortgage.




Describing Lifetime Loans




Sounds simple, but what exactly does a lifetime mortgage entail? The simplest way to explain it is you take out a loan on the value of your house. This money can be paid out to you as a lump sum or as smaller ad-hoc withdrawals whenever money is required. In most cases a lump sum is paid out, followed by cash withdrawals from a cash reserve facility created when the equity release plans was initially set up.  Read More...


Dont Be Afraid to Ask a Question about Your Lifetime Mortgage!

Many property owners who are of retirement age may consider an equity release scheme because it will allow them to have a steady flow of income or regular capital coming into their home. It may sound too good to be true, but there are a few things you should know before taking the step into a release of equity release from your property. The first thing you should do is speak with an equity release adviser to enquire about equity release schemes currently available on the market. The market can change and limit what is available to you. 




What an Adviser Does




The equity release adviser will come to your home or talk to you over the phone when you enquire about equity release schemes that may be right for you. The equity release adviser will go over all of the equity release schemes available and the pros and cons of each one.  Read More...


Time for a Lifetime Mortgage Review

Most people are afraid of losing their home ownership with a lifetime mortgage. The truth is that there is nothing to be afraid of. However, there are many factors to consider when deciding between a mortgage with lifetime parameters and a Home Reversion Scheme.




The Financial Services Authority (now the FCA or financial conduct authority) strictly governs both of the equity release scheme providers so you need to do your homework and choose the one you’re most comfortable with. In short, you retain full ownership of your property with a lifetime mortgage until either you or your spouse (or partner) dies the surviving partner keeps living in the house, or you move into long term care. The loan is repaid from the proceeds of the sale of the property and the balance, should there be one, will be paid into your estate in accordance with the wishes of your Will.




Minimum Borrow Amounts for Equity Release Read More...


A Lifetime Mortgage to Release Equity

A lifetime mortgage is just like a normal mortgage in that it is taken against a property and interest is calculated on it. However, it differs in that it does not have a fixed duration in that it lasts for the rest of your life. Hence the term lifetime! In order to apply and qualify for a lifetime loan, you need to be at least 55 years. It is also equity release possible to apply for a joint lifetime loan; however, the youngest person applying for this product needs to be at least 55 years old.




Exploring Lifetime Equity Releases




The lifetime mortgage differs from a normal mortgage in that you do not need to make a monthly repayment. A normal mortgage calculates a monthly amount based on the initial loan amount and the interest. However, a lifetime equity release does not calculate any monthly amount with the exception of the interest only lifetime loan. The different loans are assessed: Read More...


How Your Health Can Affect a Lifetime Mortgage

Not many years ago, the word commercialisation was little known to people and it was hard to form a relationship between health and business. Today, people are far more aware of their health and how it affects their daily lifestyles, pleasure and business. The concept of health and business has also brought new products on the market where a health and lifestyle questionnaire is very important.




Health and Lifetime Mortgages




Property and equity release schemes have been a topic of hot discussion in the last few years especially after the housing boom of the past. As a house owner or even an avid reader, you probably know that equity release plans now allow customers to have a lump sum amount over and beyond the usual maximum limit. However, this is largely dependent on the age of the homeowner(s) and the property value in question. However by now answering a health and lifestyle questionnaire lenders can now recalculate the maximum advance available. Read More...


Which is the Best Lifetime Mortgage product?

When it comes to retirement planning, there are quite a few options available to you. However, equity release is considered to be among the most preferred lifetime mortgage products. Equity release has been around for quite some time now however, it is gaining wide popularity in recent times as an effective tool for retirement planning. This is a much regulated scheme of lifetime mortgage wherein both the providers and the advisers are regulated under the Financial Conduct Authority. This is perhaps considered to be the best lifetime mortgage product as it offers quite a lot of benefits to the elderly who are seeking long term care.




How it Works




In its simplest meaning, equity release offers a scheme that essentially provides a mechanism under which the value of the equity tied up to your home is released. This means that you can release a certain percentage or amount of value of your home during the time of retirement when you need it the most. The best aspect about this scheme is that you don’t have to sell or move out of your home. This is an ideal scheme for retired people who find it difficult to meet their ends with the limited pension they receive.  Read More...


Get the Latest Lifetime Mortgage Rates Now

Lifetime mortgages are the most popular retirement schemes available today. Many people have found lifetime mortgages to be very helpful for the fact that they are able to enjoy their retirement life like never before. By receiving money from this scheme clients can start to compensate for the way that state pensions are used to fund their long term care or to even help their children’s future; the lifetime mortgages are easy, convenient and beneficial at old age. However, it is important to bear in mind that the lifetime mortgage rates are quite volatile.




The lifetime mortgage rates change depending upon the current economy. There can also be a change depending upon your financial past. So, when you are looking at finding the best mortgage rates, you need to understand the influence of these aspects. The best thing to do is to keep yourself updated with the latest information about the lifetime mortgage interest rate changes. 




Finding Information on Rates Read More...


Why Should You Choose an Equity Release Lifetime Mortgage

When you are choosing to release equity from your home, you generally have two options. Those being the home reversion scheme and the lifetime mortgage scheme. The lifetime mortgage scheme is becoming more popular than the home reversion. This is due to the flexibility that the equity release lifetime mortgage equity release scheme offers.




Lifetime Mortgage Specifics




The equity release lifetime mortgage scheme allows you to release money that is tax free, but you will still own your entire house, unlike a home reversion. There are generally three types of lifetime mortgage plans, the roll up, interest only mortgages and the drawdown lifetime mortgage. The roll up lifetime mortgage is where instead of paying interest each month, the interest gets compounded. Once the house is sold the loan and any built up interest is paid back from the money raised by selling the house. The interest only lifetime mortgage is generally the same, but allows you to pay the interest each month. This is to avoid any debt that may build up with the interest. Read More...


Will UK House Prices Fall Because of Brexit?




Brexit comes with a myriad of consequences, top among the speculations being the crashing of property prices. As is the case with everything else, there are two schools of thought; one that believes the property market is as solid as it can be while the other believes it is in imminent danger of being unprofitable. 




Domestic property owners are in a state of panic, which has made them dispose off their property after the vote determined the imminent exit of England from European Union.  Contrary to expectations that the market will drop due to the pull out, it is now flooded as foreign investors rush in to . Read More...


What is a Financial Introducer?

The finance industry can be easy or hard to navigate depending on what you know and how you use that information. Every business owner knows that the secret to success is in the relationships and partnerships built over time. Customers, both internal and external, are the cornerstone of every successful venture. It is for this reason that many companies seek to create and maintain vital professional relations. One such relation is with professional introducers.




Who Is a Financial Introducer?




This is mostly a professional financial adviser who introduces clients to preferred service providers. They work as intermediaries between clients and service providers. Their work is to recommend specific financial solutions that fit your current circumstances and link you with service providers offering what you need. It is a simple and straightforward relationship that is built on mutual trust, dependability and loads of professional relations built over the years. Read More...


Drawdown Equity Release

Equity release plans are financial options offered to people above 55 years old. In most cases, those who cannot access other financial facilities such