Benefits Of Using Equity Release

Equity release is proving to be a very popular choice for people wanting extra cash to spend as they wish during their retirement years. There are many reasons for people taking out an equity release scheme, including, home improvements, holiday and travel, or simply a way for them to release cash to relieve the stresses and strains of day to day personal finances.

There are currently three main types of equity release schemes: lifetime mortgages, drawdown lifetime mortgages and home reversion plans.

A lifetime mortgage allows you to take out a mortgage which is secured against your property and in return you receive a cash lump sum. No monthly interest repayments are needed to be made and you can continue to live in your home for life or when you decide to move out.

If you are a homeowner aged 55-95 then you may qualify for an equity release scheme. If equity release is something you are considering it is advised you speak to an independent equity release specialist who can offer you impartial advice on finding the best equity release scheme to suit your needs and requirements.

Through the use of an equity release calculator you can find out how much money you can release from your home. An equity release calculator works on the basis of your age, health and lifestyle, how much your house is worth and the kind of equity release scheme you choose.

Equity release at a glance:

• Receive a cash lump sum or income.

• No monthly repayments to make.

• Freedom to spend the money in any way.

• Stay in your home for life, or as long as you choose.

• Range of plans available.

• The value of your estate is reduced.

• Entitlement to state benefits may be affected.

It is highly important that you only choose an equity release scheme that is SHIP (Safe Home Income Plans) approved. This means that you will never fall into negative equity (i.e. you will never owe more than what your house is worth), you can stay in your home as long as you wish or move out if you choose (subject to criteria).

Releasing cash from your home could affect your family as it will reduce the value of your estate if you decide to go ahead. That is why you should involve your family through every step of the process so they can help you make a decision. There are many equity release schemes available which guarantee you can leave an inheritance to your family.

Find out how much money you could release today though a free easy to use equity release calculator.

By: Jason Cartham

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Jason Cartham is the author of this article on Equity Release. Find more information on Equity Release Calculator here.