Advice for Retiree

Archive for the tag “Equity Release”

Clarify Your Doubts before Signing Up For Equity Release

image courtesy: goo.gl/p8m2X

image courtesy: goo.gl/p8m2X

 Nothing comes with a 100 percent assurance unless you have verified the authenticity of a product. Such a notion is even applicable for equity release plans that are designed to benefit the senior community at large. Despite, being known as one of the most reliable and effective financing solutions of recent times equity release entails a prospective borrower to seek financial advice before a person signs up an application form.

There are certain questions that will typically arise when a person moves ahead to seek an equity release scheme. On clarifying such questions a consumer can proceed towards the right route. Most often people who are not wholly familiar with such kinds of financial schemes may ask more about the operating procedures of equity release and how they actually assist in solving financial problems.

Equity release unties the wealth tied to a property. These financing schemes can either release the whole value of a house or part of it either in installments or in lump sum.

Can a person, release equity on his property even after he has not paid the dues of his previous mortgage? Equity release schemes don’t allow a person to unlock the cash worth of his property if he has not yet paid his dues of a previous mortgage. The consumer will only be allowed to release cash after he settles his dues in full.

If your mind questions you as to “why should I release equity?” you can straight away look for financial advice from an authorized site dealing with equity release and its offerings. Furthermore, you may think if these financing schemes are best suited for your set of needs, or not. It is quite obvious if a person enquires on whether a particular scheme will appropriately tailor his needs. Most importantly, before a consumer opts for equity release, he has to ascertain the other options that are available. Since it is considered a lifetime commitment, consumers are recommended to consider the pros and cons entailed in such kind of financing schemes.

Image Courtesy: goo.gl/pS9Ex

Image Courtesy: goo.gl/pS9Ex

A lot of people think that these financing solutions are mostly rigid in nature. On the contrary there are also schemes offering flexible solutions to retired consumers who need instant financing solutions. No matter how complex a person’s financial need may be, there are long term financing plans under equity release that are meant to fit around the varying requirements of borrowers. In order to choose a perfect plan, people nowadays seek advice from authorized financial experts.

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Overcome Financial Worries Post Retirement with Equity Release

The abundance of the equity release products is regarded to be the most effective solution provider. If you wish to go for it you will need to go through certain criteria.

Your Home: Your Saviour

Your home can save you. Yes, it is true. If you do not have a great pension in your post retirement years then it will be difficult to make your ends meet. If you are a homeowner and an individual over the age of 55 years then you are eligible for equity release. Equity release plans are said to make every senior citizen financially happy. The equity release plans are especially designed for individuals above the age of 55 years. Equity release is the most reliable and one of the safest options that one can get in his post retired life to make financial conditions a lot better.

Image Courtesy: bit.ly/xFbbrJ

Image Courtesy: bit.ly/xFbbrJ

Equity Release Plans For 55 +

Throughout the United Kingdom home owners above the age of 55 are going for the viability of using equity release plans to raise the much needed cash. Equity release plans are extremely versatile. This is because the money that is being freed can be spent on just about anything. Two of the most popular equity release plans are home reversion plans and lifetime mortgages. To be eligible for these and the rest of the plans you need to be over 55 years of age as well. These are one of the most innovative ways to free up cash. It is also easy to find out whether you can qualify for an equity release plan through an equity release calculator. You need not have to leave the premises of your house in your lifetime if you apply for the equity release plans.

image courtesy: goo.gl/wr7g7

image courtesy: goo.gl/wr7g7

Modes of Payment

The payments that are received from the equity release plans can be primarily obtained in two modes. These two modes are lump sum amount or equal monthly instalment modes. Financial advisors however advise that you go for the latter. Going for the equity release schemes are one of the major decisions that one has to take about his post retirement life. It therefore is always advised to talk to your equity release guide before you make the plans.

Therefore, if you are more than 55 years and own a home in good condition by your name in UK then you can go for equity release. It is highly advantageous for individuals to go for the equity release plans to say goodbye to financial worries post retirement.

Amid Pension Rules’ Acceleration, Equity Release Remains a Driving Force

image courtesy: http://goo.gl/8gb6z

image courtesy: http://goo.gl/8gb6z

According to a study published by European Insurance and Occupational Pensions Authority (EIOPA), the new Pan-Europe pension deficits calculation rules can bring £150 billion funds in UK. This fund will be used to meet targets of defined benefit pension schemes in the country.

In yet another announcement, Chancellor George Osborne has emphasised on the government’s commitment to speed up new and simple pension overtures. According to Osborne, critic-centred cap on social care cost is also set to introduce almost at the same time.

Single-tier pension plan and cap on social care cost is set to launch a year earlier

The UK government has decided to bring single-tier pension scheme a year earlier than the due date was announced previously. Talking benefits of this plan, Osborne has declared that single-tier pension plan will come into effect from 2016, it was set to launch, before, in 2017.

Cap on social care cost is also to be introduced at the same, though the cap has been reduced from £75,000 to £72,000.

Osborne was forthright in saying that one requires paying up £72,000 only once and state will bear the care cost of senior citizens for rest of life.

To level pension disparity, single-tier pension plan is set to introduce at £144 per week. The Chancellor was up-front with praises for this “generous” pension scheme and claimed it as a massive boost for retirees keen on retirement savings.

However, it’s to be seen how new pension plan and social care cap fares in future. For most retirees, accumulating huge sum of social care cost will be a challenge. But, certainly, it’s not end of the road for them, as equity release can help retirees recover from challenges and to pay up the care cost.

House of Lords committee suggests equity release as effective retirement solution

A House of Lords committee had a few weeks earlier, recommended equity release as an effective solution to sort out poverty issue from the life of pensioners. This committee has also suggested government to chalk out strategies and spread awareness, about equity release, amongst the citizens of UK. (News source: http://goo.gl/cOMi4)

With several virtues, equity release scheme offers UK citizens to withdraw equity from their houses in cash lump sum or as monthly income. Unlike other mortgage plans, equity release customers can retain the ownership right and live in the house for entire life span.

Equity release offers countless benefits to customers, one of the most interesting and beneficial facets of this scheme is that paying back equity release mortgage, prior to your death or decision to move out from house, does not amount to any penalties.

It’s because of such time and means tested benefits that equity release has constantly been up on the minds of retired citizens in UK. Equity release market is functioning with all the new hopes, acquired from the last year’s huge success, to parity the income gains in the life of retired UK citizens.

Turn Your Home into the Key to a Happy Retirement

image courtesy: http://goo.gl/HXM2L

image courtesy: http://goo.gl/HXM2L

Equity release has long been around and though it had a shaky start, the schemes are gaining popularity among the retirees now. The contribution of the Equity Release Council cannot be denied in this matter since they were the ones to regulate the plans and the schemes and to make them safer.

Retirement is a time that we want to spend in some material comfort considering our failing health and other conditions. So, even if the official retirement age has been abolished, it has not been possible to do away with the retirement planning. Like always it is still believed that the earlier you start planning the bigger will be your pension pot and the more secure will be retirement life.

What about those who just woke up?

image courtesy: http://goo.gl/dzwmS

image courtesy: http://goo.gl/dzwmS

Believe it or not, there are people who would wake up one fine morning realizing that they are going to retire very soon. So, they do not get the time to plan their retirement. But that does not mean that they have to spend their retirement in poverty. It is then that equity release comes in most handy. You can get the cash up front and therefore, you do not have to wait for the money. Turn your home into the pension pot that will make your retirement life easy financially.

Some more reasons to release equity on your home:

image courtesy: http://goo.gl/xcJHo

image courtesy: http://goo.gl/xcJHo

This is one plan that will not restrict you because you are too old. In fact, the older you are, the higher are the chance of getting good returns. If this is not reason enough for you, then look at the other benefits of releasing money on your home:

  • The right to live in your own house
  • Tax free money that can be used for any purpose
  • No negative equity and you can even leave a legacy in certain cases
  • Low interest rates

 

By releasing equity on your home you will not only be able to manage your daily finances but will also have enough to fulfil some of your wishes like buying another car or going for a tour.

You have maintained your independence throughout your working life and there is no reason to do otherwise now that you are retired. Even if you have not planned for your retirement yet, you can do it now with equity release. Talk to a financial advisor today and find out how much can be released on your home. Even if you have left the rat race, there is no reason why you have to make do with less cheese.

 

Equity Release Is a Pivotal Financial Contributor in Your Post Retirement Life

house-money

    image courtesy: http://goo.gl/g46Qu

The properties’ value in UK is on a rapid rise. A large number of Brits have significant value tied up in their properties. On the other hand, insufficient pension pot is inadequate to meet the basic standards of post retirement life. For them, who bank upon pension pot to live a comfortable life, it’s proving a nightmare.

It’s no surprise to see such a huge response to equity release scheme, the dastardly economic effects are compelling homeowners to draw out money from their properties. Into the last year, 2012, equity release market plunged forward, accomplishing new heights in the industry.

The governing body in equity release market, SHIP, is on the cloud nine by seeing a huge response from older homeowners. The growing needs amongst retirees and awareness about various plans under equity release are the causes behind such a huge uproar for this scheme.

Poor savings and insufficient investment returns have drenched retirees’ standard of living, economic slowdown is adding to their woes. With high inflation rates on all the essential commodities, living a substantial post retirement life is becoming impossible for many retired persons in UK.

Equity release can provide them all what they have ever dreamt of. With lowered interest rate and various flexible plans, equity release market has come of age and being driven by faith from customers.

However, like every coin has two sides, equity release, too, is having some positives and negatives. But, its virtues have the abilities to overlap negatives, which are only a few. In spite of some negative consequences, equity release scheme is far better than several interest only loans. One must not be in dubious mind, release equity on house and fund your retirement to start financially secured life afresh.

Let’s talk of some pros and cons, start with virtues of equity release scheme:

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pros cons

Pros

  • Tax free lump sum or monthly income
  • Usually, there is no requirement of monthly repayments
  • Spend the money as per your wishes
  • Full ownership of house for lifetime
  • No negative equity is guaranteed
  • Debts are not passed on to your family
  • Possibility to leave inheritance for dependants

Cons

  • Estate value might get reduced
  • Entitlement to state funded benefits might be affected
  • If you opt for a wrong plan, interest rates might be higher

Do not get driven by some of the negative aspects of equity release. Well, suppose, your estate value gets reduced but that is not sufficient to curtail you from living a comfortable life. If you have no heir or you do not intend to leave an inheritance, what your house is worth for after your death?

With the released money, you can fund your basic needs, as the money received is so high. It’s important to seek experts’ advice  as they can provide you exact information on various equity release schemes and which one is best suited to you.

Pay Less and Earn More in the Long Run from Equity Release

As per the existent market scenario, equity release schemes which have been helping millions of seniors achieve a desired flow of income from the cash value of their property, are now offering lesser rates, which means the elderly population can actually save a huge amount on whatever they pay. Nowadays anyone who has already opted for a scheme at surging rate can make a switch. Yes, retired home owners can now look for enticing deals on equity release and economically strengthen their future.

Reports of interest rates of equity release schemes experiencing a fall have become widespread. Stonehaven, a popular equity release provider has already curtailed the rates from 6.08 to around 5.98. It has also been seen that interest rates have fallen by a percent since last year. Though initially the change may seem trivial to our naked eyes, still it will help reap massive in the long run. Earning lump sum in the long run can really make a difference.

Equity release schemes are the most sought-after financial plans reigning over the retired community. The schemes are specially meant to access the tied up value of one’s property. One of the most popular schemes that have managed to reign over the market is the lifetime mortgage scheme. Under the lifetime mortgage scheme, the rate of interest remains fixed and the home owner earns a regular income till the time he dies or is shifted to long term care.

The interest is basically calculated as a rolled up sum; however borrowers can also opt for deals that allow a consumer to pay interests on a regular basis. The loaned amount is repaid from the sales proceed after the property is sold. However, recently experts have been suggesting the borrowers to make a move and opt for other lenders in the market. However, it is also important for them to ask financial experts about the dos and don’ts involved and to know if a switch may actually come to their rescue.

Additionally borrowers who are agreeing to such change should actually beware of any early repayment fees; such early repayment fees can actually deprive people from deriving any benefits. Nowadays home owners can avail these super beneficial financial schemes at 55 years or above. Furthermore an expert has recommended that unless a borrower has strong reasons to withdraw the cash at an earlier date, the person should wait till the time he/she steps into 60. To know more about retirement plan with equity release schemes one should rely on experts who have knowledge about the market.

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