Equity Release Calculator

Some Prospective Schemes Helpful for Retirees

What about retaining your property and at the same time using its value to receive an income for lifetime? Yes, it’s possible only with equity release. Presently, the retirees in the United Kingdom are considering this option to be the best. A sigh of relief has completely prevailed over the kingdom of the retired Britons and everyone seems to be happy with the terms and policies of the schemes. So, hats off to the equity release providers who came up with deep concerns for the tension tossed retirees in the United Kingdom.

Let’s have a look at the schemes one should go for:

Lifetime Mortgage – Lifetime mortgage or mortgage loan is said to be the loan secured on the claimant’s property. The interest compounded is added to the capital throughout the entire period of the loan which is repaid by selling the home as soon as the borrower dies or shifts elsewhere. Apart from retaining the property, the borrower gets back all ownership costs.

Home Reversion – The borrowers can sell the whole or a certain portion of the property to a third party or a reversion company. This indicates that a certain or the entire portion of the property will belong to some other person.

Shared Appreciation Mortgage – Here the lender provides the borrower a capital sum and in return the borrower provides a certain portion of the property value. The borrower holds the right to live in the property till his death. If the client is too old, the share to be received by the lender will be smaller.

Home Income Plan – It’s a sort of a lifetime mortgage plan where the capital serves as the income when an annuity is bought with the help of an insurance company.

So, whichever plan you are willing to opt, make sure you choose a reputed equity release agent and go for the appropriate scheme.