A Golden Opportunity You Should Not Miss

Is your home cash trapped? Of course it is; your house has been bought by you with a certain value and it still bears a value that is monetarily endorsable. For all these years life seemed uncertain so much so that you were literally forced to think of a way out to finance your retired days and then one of your friends had suggested you to release your property’s value to make way for an income flow. You were not much sure about releasing your property’s money worth; but then today, you have finally learnt what kind of a financing plan equity release really is.

Helping Seniors Find an Economic Route

Today seniors are suffering from pathetic finances and can surprisingly have their way out through equity release schemes. This financing solution comes to your rescue while you are on the brink of giving up your tries. You have had already started running out of cash with those huge long-term care bills and the grocery bills until you had realized that it was time for you to discover the money unlocked in your home; but your financial advisor had asked you to consider a plan from an authentic equity release provider.

Ideally today's market is flooded with three of the best equity release schemes the planet has ever seen; but it seems that not all of them can provide you with the benefits you had been looking for. Each of these schemes differed from one another in terms of their offerings and their conditions. While most of them are authentic some are not. So, it is important you look up for schemes that are industry approved. Moreover, a plan that reveals the Safe Home Income Plans logo is considered an authorized one.

A Look into the Schemes

Equity release schemes let you live a financially independent life while staying in your own property and not paying any extras on penalty charges. Wow!! Seems like a gem of an idea. Now, it is time you take a look below to understand the schemes available in the market:

Home Income Plans: This is basically a mortgage plan where you get financed for an annuity scheme you have bought, against your property’s worth. This annuity then, guarantees you a steady income flow. Interest on mortgage is calculated on the income you receive.

Lifetime Mortgage: This is a unique plan where you get money and don't pay anything for it. The interest is not charged separately; it is added with the loan. The loaned amount and the interest are secured by the equity release provider from the sales proceeds of your home.

Home Reversion Plan: this scheme entails you to sell your house in return of monthly income or a lump sum. It is like more of becoming the tenant of your own house. After your property is sold the equity release provider will secure the loaned amount.

A Promising Way to Secure your Future

It is evident that worries are bound to enter in one’s life right after their retirement. The only way to remove those worries is to be prepared. The equity release schemes can come highly useful to meet the post retirement financial crisis. The schemes are created after considering the needs of the retired people to help them financially.

An equity release generally helps a retired person with monetary benefits after releasing mortgage on his property. The biggest advantage of the equity release schemes is that the person doesn’t need to find another house to live in. The schemes allow him to stay at his property for the rest of his life.

The Equity Release Schemes

There are mainly two kinds of equity release plans, Lifetime Mortgage and Home Reversion Plan. This lifetime mortgage offers retired people steady monthly income in their retirement years. The retirees can either receive the money at a time or in monthly installments. The amount of money which a person will receive depends on the worth of his property. The amount of money generated by these schemes is non-taxable.

Home reversion plan is another equity release option which a retired person can consider. This scheme allows him to sell a part of his property. After the death of the person, the spouse can continue to live in the property. If both the owner dies, the insurance company will sell the house and get back its invested money. It is one of the most valuable equity release schemes and most affordable too.