Equity release plans are perfect tools for elderly homeowners to generate additional income besides their pension. With these schemes, homeowners can sell their home (a part of it or in its entirety) to unlock cash. Moreover, this scheme also allows them to continue living in their home until they pass away.
Getting a lifetime mortgage
Home reversion schemes and lifetime mortgages are two of the different options available to those looking to release equity from their homes. With these schemes, there is no need to make monthly repayments. The interest on the loan amount keeps rolling up. After the death of the homeowner, the property is eventually sold and the mortgage amount is recovered.
The way an equity release plan works is completely opposite to the conventional mortgage. Traditional mortgage plans allow individuals to borrow money and use their property as security. On the other hand, with equity release schemes you will need to sell your property to an equity release provider. However, the equity release provider does not get possession of your home until you pass away.
Speak to a financial advisor and opt for an equity release scheme that suits your needs.
These are lifetime mortgages and home reversion plans. To understand their features and risks, ask for a personalised illustration.