Equity Release Mortgage Ensures That Lack Of Finance Does Not Stand In The Way

Category: Finance, Mortgages.

Entering into old age often brings in its wake, financial problems as well.

You may have old age plans, some expensive dreams you have reserved for the post- retirement phase. You are no longer earning, the pension benefits may not be sufficient, and the expenditures are high, nonetheless. Equity release mortgage ensures that lack of finance does not stand in the way. A home reversion scheme has provisions to make a sale of a percentage of your property in exchange for a lump sum or monthly income. Equity release schemes are generally available in two types of packages: home reversion scheme and lifetime mortgages. Lifetime mortgages allow for a percentage lending of your property s value, on which interest is charged. equity release mortgage ensures that your old age is devoid of any financial worries. You do not need to sacrifice your dreams and plans that you have for your old age.

It makes life in your twilight years easy. As your equity is calculated, you may be offered either a lump sum or a monthly instalment. And for the rest of your life, you can simply forget about shortage of cash and be free to spend as you are never required to repay it in your lifetime. Generally, it is the former. It is only after death or if you move your house that the lender takes over the part of your property as pledged by you. Since property prices are on the rise, it also brings along the realisation that the heirs would have much more to benefit now.

Of course, here you need to consult with the financial experts to take into account inheritance issues as well as take care of the negative equity guarantee clause. Therefore, when deciding upon equity release mortgage, you need to balance your present monetary requirements with that of the future of your heirs.

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