When it comes to deciding which equity release plan is suitable can be difficult without the required knowledge. It is always best to seek independent financial advice to find out which plan is the best. When choosing a plan, consider if you are looking for a low interest rate, guaranteed inheritance for your children, or just the maximum lump sum.

Equity Release Supermarket is an online company that will show you which equity release plans to choose from. They provide a table of plans and products that will help make your search easier. The plans include drawdown, home reversion, lump sum, and interest only mortgages. In addition, they can provide an advisory service & have the facility to provide an appointment with a local adviser, either in the comfort of your own home or over the telephone, dependent upon which ever suits your requirements best.

A drawdown equity release is similar to a lifetime mortgage, except that you can take only the amount of money that you will need. That way you do not eliminate all of the equity in your home at one time. A lifetime mortgage allows you to receive the maximum amount that your home is worth at one time. A home reversion allows you to borrow any amount from the equity of your home by selling a proportion of the house value. For instance, by borrowing half you will allow your children to inherit a piece of the property when you pass away. (more...)

A lifetime mortgage is one of the options that allow homeowners over ge 55 to release capital from their home. It is a mortgage that is given to homeowners that are in their retirement period & is secured against their property. A lifetime mortgage differs from a typical mortgage that is offered to those that are not yet in their retirement period in that the amount borrowed is repaid when the policy holder dies. As with a typical mortgage, interest is applied to the initial amount borrowed; however, the type of lifetime mortgage will determine when and how the interest amount is repaid.

There are four main types of lifetime mortgages. The rolled-up interest lifetime mortgage calculates on the basis of compound interest, which means that interest is charged on top of interest annually. The borrowed amount is paid to the applicant immediately as a lump sum amount or is gradually paid over a period of time. The loan amount and the accumulated interest are normally paid when the policy holder dies or moves into long term care.

The interest only lifetime mortgage charges interest on a monthly basis. The interest amount has to be repaid every month. The interest only lifetime mortgage is normally offered to those who are over 55 years and are able usually able to prove that they can make the monthly payment. Again, the initial loan amount is normally paid when the policy holder dies. This type of lifetime mortgage allows homeowners to leave an inheritance for their children or grandchildren because once the property is sold, only the initial loan amount needs to be repaid. The remaining amount is normally left for the children or grandchildren. (more...)

The Stonehaven Interest Select Plan has been designed for pensioners who are conscious of their inheritance and their financial stability in their retirement years. Stonehaven is a reputable provider that is regulated by the policies of the Financial Services Authority (FSA) and is a member of the Safe Home Income Plans organization (SHIP).

The Stonehaven Interest Select Plan is in essence an interest only lifetime mortgage for people who are above 55 years of age. The Interest Select Plan and the alternative roll-up lifetime mortgage schemes are both offered by Stonehaven.

The Interest Select Plan has increased in popularity due to the fact that it does not keep adding interest to the initial loan amount resulting in a higher balance over time. The Interest Select Plan makes it possible for the interest amount to be paid every month thus keeping the balance level. With interest rates that are as low as 6.13%, Stonehaven offers the lowest equity release interest rates that are currently available. (more...)

A person who is over the age of 55 can receive money from their home to spend any way that he or she wants. There are two main equity release plans, which are home reversion and lifetime mortgage. Before choosing an equity release plan, always consult with an independent equity release adviser, so that he or she can help you pick the right plan.

An equity release adviser will tell you how to release equity from your home. The older that you wait to release equity, the more money you can get. The rationale is that the shorter your life expectancy has remaining, the less time it has for the interest to accrue over. Once the financial adviser chooses the best equity release plan, you can find the company over the Internet and apply.

The equity release adviser will initially conduct a factfind in order to gather all information regarding your current situation. They need to ensure that all bases are covered & any advice offered does not have an adverse impact on any other areas of financial planning such as means tested benefits. (more...)

Owning your own property is definitely something that most people in the UK aspire to. There are over 11.2 million mortgages in the UK 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.

An interest only lifetime mortgage is one type of mortgage that more elderly buyers are researching into so that they can have plenty of options available. The unique feature of these types of 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.

The nuts and bolts of interest only lifetime mortgages are simple to understand. Here is a sneak peek of what to expect if you decide to go down this route: (more...)

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 & have a minimum valuation of £60,000.

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. He 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. He should provide a Key Facts Illustration which is usually a ten page document explaining the 'ins & outs' of the recommended scheme such as the costs & charges & the rolled up balance in the future years. (more...)

Are you in your retirement period and worried that your pension or your retirement savings will not be sufficient to meet your daily needs? Or are you approaching retirement and worried about the stability of your financial future? Are you the owner of a property? If your answer to these questions is yes, you might want to consider equity release.

Equity release allows homeowners in their retirement period to release capital from their property which they can use to finance their daily needs. In order to obtain an estimation of how much money you can release from your property, you can use an equity release calculator which is available on the website of most if not all equity release providers.

Using an equity release calculator is free of charge. Based on your age and the value of your property, you can receive an estimation of how much money you can obtain from an equity release plan. An equity release calculator can be used for all type of equity release plans include lifetime mortgages and home reversion plans. (more...)

The fact is that equity release is not right for everyone. It is simply not an option for some even though they might be in need of an additional income or capital lump sum. What do these people do? Are there any alternatives to equity release that they can consider? The answer is yes. There are many other alternatives to equity release.

Some of the alternatives to equity release are as follows: -

Instead of seeking to release capital from your property, you can use any existing savings that you or your partner may have in the bank, building society or investment bonds. This can delay the uptake of equity release for a number of years during which time you will be saving interest. (more...)

It is now very easy to find ways to lend money. You do not have to go through difficult channels or procedures if you simply take time to visit one of the UK banking sites. These sites have easy, step by step guides that help people find the right kind of loans for what they need.There is lots of advice available regarding the various types of finance you can choose from. This includes what options will be best depending on what you need it for. Interest rates are quickly calculated without any hassle or fuss and easy terms can be arranged as well.

Loan application forms are found on the site as well and you can simply complete one of these and submit it. It’s really as simple as that. UK banking sites take a lot of the stress of obtaining finance out of the procedure that they adopt online. After submitting your application online, you will be contacted by phone or email regarding the success of your application.

Some institutions have systems available that are able to even pre-approve your loan so that you don’t have to wait for days before you find out if you have been successful. In most cases, the loan is approved within a matter of minutes or hours and the money will be in your account as quickly. (more...)