| Equity Release Schemes and Lifetime Mortgages Offer Cash In Old Age |
| Articles - Mortgage |
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Pressures are increasing on our retired population. They depend on their life savings to financially assist them with their day to day living expenses. With interest rates decrease the value of their savings is falling.
Pressures are increasing on our retired population. They depend on their life savings to financially assist them with their day to day living expenses. With interest rates decrease the value of their savings is falling. Pension schemes have lost valuerecently in the stock market fall thus decreasing their value on drawdown. This will leave people nearing retirement with a gap in their retirement funds and seeking another stream of income. As Life long pension and investment values are falling pensioners are looking for new ways to fund their retirement. The rising prices of fuel and food are taking the toll on bank balances making it difficult to afford the lifestyle they have saved for. The key to making they right decision regarding Equity Release Schemes is research and good advice. Equity release schemes can help fund retirement but aren't suitable for everyone. Equity release allows you to only borrow a small percentage of the value of the property 35% -55%. The amount depends on variables like age, health and house value. Be careful if you are on means tested benefits or if you receive help to pay for your care, Equity release may remove your eligibility A negative equity guarantee is always a good idea with Equity release. This means even if the value of the house drops significantly you will never owe more than your house is worth. Use a provider who is a member of SHIP (Safe Home Income Providers) and well known or recommended. When considering Equity Release Schemes make sure you are aware of all the charges involved and check for early redemption penalties should you wish to exit the product as you never know when your situation will change. Equity Schemes should not be confused with Sale and Rent Back, they are completely different products. Sale and Rent Back is not regulated by the Financial Services Authority. You should always obtain independent legal advice before proceeding. Equity release can be complex. Make sure you have all the facts at hand to ensure you make an informed decision. Are Equity release schemes as good as they sound? Do they deliver? The answer is YES. You need to research them thoroughly and find yourself a specialist advisor who deals with them on a regular basis and is up to date with all the latest facts. We would expect to see a increase in the amount of people chosing to add equity release into their retirement planning. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Enable Finance Ltd the financial comparison website provides impartial access to personal finance and has prepared a free info pack on Equity Release Mortgages and life time mortgages. Enable Finance has been a recognised expert in the UK mortgage industry since 1997. |