Tag Archives: Home Reversion Plans

Latest News from the Equity Release Market

In the recent past, the Equity Release market has been significantly earning popularity. Going by the latest trends in the market, there are signs that it is going to even grow massively in the years to come based on the increasing demand by a number of retirees. In order for you to find out more on why this product is becoming very popular in the market today, keep reading and click here for further details.

Equity Release as a product is gaining so much love from many people today since it offers home owners an essential way of tapping into the value of their homes or property without having to put them up for sale. It gives retirees who own homes the accessibility of the equity in those homes in the form of cash that they can use while in need. You can click here for further details and learn more about what these schemes can offer. It is a great tool that enables home owners to optimise the value of their homes.

Reasons for Increased Popularity

1. Equity release plans are gaining in popularity mainly due to the availability of such plans.
2. The Internet and commercials help bring these plans to the forefront engaging retirees.
3. The more recent recessions have also made it difficult to live solely on one’s pension, so retirees are seeking alternative options they might not have considered before.
4. People are also living longer, which in turn means more income is necessary and statistics from The Guardian, BBC, and other newspapers show most retirees have insufficient pension plans for their longer life.
5. Popularity is also due to the increase in the number of retirees. The generation coming up for retirement is one of the biggest generations in terms of population meaning there are currently more retirees than the last generation and even the generations to come. It is a result of WWII, when many men returned home to start their families.

Exploring Types of Equity Release

Over the period that Equity Release has been in existence, there are several types that have been designed. As a result of this, retirees are offered the freedom of choosing the ideal type that can suit their personal interests. All these types are flexible and have got different merits such that home owners can always get the best plans for themselves. The two main types available in the market today include Home Reversion plans and Lifetime mortgages.

The re-launch of a special buy-to-let equity release plan is among those statistics that you can rely on in order to know that indeed, the Equity Release market is growing by the day. The plan known as Landlord Lifetime Mortgage has been designed to enable home owners to release equity from the portfolios of their buy-to-let property. Landlords do not need to sell their homes in order to raise the cash.

Extension of the theme of the 2nd property equity release to cover holiday cottages and holiday homes is yet another statistic indicating that the product is gaining demand in the market. The extension covers those cottages and homes for holidays that are used by families. All these types enhance the strength, variation and flexibility in the mortgage market for retirees.

While these newer products to the market and resurgence of the buy-to-let concept are gaining in popularity the other traditional home equity release options are still as popular as ever.

Home reversion allows a homeowner to remain in their property under a lifetime tenancy agreement. In this situation there is no need to repay mortgage costs or interests. It is the original concept of home equity release. Homeowners are given an out to remain in their beloved home, while enjoying extra funds for their daily lives.

With lifetime mortgages there are also options from drawdown that gives you a chance to take money out as you need it to interest only lifetime mortgages where you pay the interest as you go, lessening the amount owed later on.

Click here for further details about the various home equity release schemes. Always keep up to date about what might be changing or coming into the market too. You never know when a better plan might enter the market. Financial markets like equity release are ever-changing to ensure the product works for retirees who might need a little help. With the latest news from the market you will be armed with ideas for what to do next as you approach retirement age or an age in which you need some extra capital.

Advantages of Equity Release Calculator

Choosing to opt for an equity release scheme can be a big decision. Many people over the age of fifty-five are facing the prospect of spending their retirement years struggling on an income which is insufficient for their needs. Equity release can provide a way to release the money which is tied up in your property without the need to sell your home and move elsewhere. When contemplating equity release, many people prefer to research their options independently and an equity release calculator can assist with this.

What is an Equity Release Calculator?

An equity release calculator is a free online tool which assesses your circumstances to qualify for equity release schemes. They are simple to use and take a format similar to an online questionnaire. You supply basic details such as your gender and age, and financial details including the balance of your current mortgage and value of your home and the calculator will compute whether you would qualify for an equity release scheme and the amount of release sum you could anticipate.

The Advantages of an Equity Release Calculator

There are numerous advantages associated with using an equity release calculator. These include:

Instant qualification information: Equity release is not available for everyone and an equity release calculator can check that you meet the requirement criteria and inform you instantly if this is not an available option for you. For example, the minimum age for equity release is fifty-five years old. However, in cases of joint applications, it is the age of the youngest applicant which determines if the age criteria is met. This would mean that a couple aged fifty nine and fifty four would be unable to participate in an equity release scheme until the younger partner has reached fifty-five years of age.

Highlights other options: There are actually a number of different plans and products available for equity release. Many people limit their research to only one aspect of equity release, when in reality another type of product may be better suited to their needs. For example, draw down mortgages are a good idea for those who do not require a large initial lump sum. They allow for a draw down limit to be placed on a facility to call off funds as and when required. This can save paying interest on funds only to have them sat in a bank account earning a fraction of a per cent interest. Additionally, it can provide some confidence that additional money is available when you need it. Another example is home reversion plans. These are an uncommon type of equity release which allows a home owner to sell a portion of their home to the company. Although they retain residency rights, they know exactly how much of their property has been sold and they need not be concerned about interest rates or inheritance being affected.

Calculates a maximum lump sum: For many people, the amount of lump sum will determine whether they wish to proceed with equity release. An equity release calculator can provide an accurate figure of how much the maximum release would be and you are then free to decide whether this would be sufficient for your plans.

No pressure information: Many people worry about speaking to a broker and feeling pressured to make a decision. Although professional brokers will allow you plenty of time to go through the paperwork, many people enjoy the anonymity of using an equity release calculator. They can research through the information provided in their own time and take their time making a decision about whether they wish to move forward.

Using an Equity Release Calculator Effectively

In order to make the best use of an equity release calculator, there are several points which should be considered. These include:

Check the accuracy of your information: The figures offered by the calculator are only as accurate as the information you supplied. Over or under estimating the balance of your mortgage or the value of your property can dramatically affect the amount of maximum equity release possible. Therefore, you should take a little time to check your information.

Use more than one calculator: Each equity release calculator is linked to a specific range of products and schemes. Calculators on equity release companies websites will only have information related to that specific company’s product range. In order to gain the optimum information, you should use a number of different calculators. Ideally your chosen calculator should be linked to an independent broker who has greater access to a wider range of schemes and plans. This will increase the likelihood of finding the best possible deal.