What is Equity Release?
Equity Release is the process of releasing money from a property. The money is given in a lump sum, frequent amounts or both. There are two different kinds of equity release plans offered, both have different terms. One is a lifetime mortgage which involves acquiring a fresh loan that’s secured on your house, the second is a home reversion that involves selling part or all of your home. Both will equally provide you with a lump sum payment or an income.
Who should apply for equity release schemes?
Equity release has become a rather influential part of retirement planning. Pensioners through the entire UK find equity release a welcome financial boost. Whether it’s for a dream trip, financial security or a new lifestyle, the schemes popularity is rising a great deal. Use a free of charge equity release calculator to find out how much cash you can release.
Disadvantages of equity release schemes
One of the main concerns when considering equity release is that you will be using any inheritance you could leave your children or loved ones. With this in mind you need to carefully consider your options before proceeding with any contract. There are numerous equity release experts who will be truthful with you. Your initial concern could be that you end up being forced into signing a legal contract you later regret. You must ensure you build a trusting relationship with an equity release professional before signing anything. Avoid sales representatives, instead spend some time and look for a genuine expert in equity release, only experts will answer your queries accurately.
Is Equity Release Secure?
The United Kingdom governments Financial Services Authority (FSA) closely regulate equity release schemes. If you take out a plan you’ll be substantially safeguarded. In addition in April 2007 the FSA regulated the home reversion plan industry, you can go to the FSA website for more information.