Tag Archives: Home Reversion

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.

Equity Release Financial Advice

After two years, the banking sector seems to have calmed down again, and whilst things have not returned to normal in regards to them lending money to home buyers, it is getting slightly better. In fact, there are now all manner of mortgages, loans and equity releasing deals becoming available. From things such as an interest only lifetime mortgage to endowments and more besides, the choice can be quite bewildering.

Therefore, it is a sensible idea to seek some form of financial advice from one or more sources. Everyone’s situation is different, and whilst re-mortgaging a home may be suitable for some people, it will be a bad idea for others.

There are many websites online which provide great, free impartial advice and these are a good place from which to do some initial groundwork. Martin Lewis over at Money Saving Expert has one such website, and it is visited by hundreds of thousands of people every week.

With the groundwork done, it is then time to get some independent advice before finally approaching a bank for a loan or other financial arrangement. An important thing to keep in mind, is that even though you may make a decision now on what scheme to use, you should really have one which gives the flexibility that it can be changed with little or no penalty.

The process is long for taking out a home equity release mortgage or reversion plan. It can take 6 to 12 weeks depending on which scheme you decide to enter into. Additionally, interest only lifetime mortgage is just one option open to you.

When you find financial advice you want to look at more than just one Internet blog, forum, or article website. It is helpful to get an idea of what you might enter into by speaking with retirees who have already gone through the process. It is also in your best interest to search around and see what myths might have appeared on various sites. In this way you can ask your adviser what is factually accurate and understand why there might be a little confusion over the entire matter.

When home reversion was first announced to the market a lot of misunderstandings appeared online. One of the biggest misunderstandings was about selling your home and then having to pay rent to the new owner just to remain in the home. Actually, what happens is that you sell a part or all of your home to an equity release provider and obtain a lifetime tenancy agreement in return stipulating no rent is required as long as you live in the house. It is only when you and anyone named in the contract move out that the house has to be sold.

As you can see from the above explanation, there is definitely cause for misunderstandings which leads to a definite need to seek proper financial advice. The interest only lifetime mortgage is an actual mortgage where the principle balance is due at your death or when you decide to move out of your home. This can mean your home has to be sold to cover the mortgage. The good news is you have paid interest towards the loan balance, so the only amount left at the time the house is sold is the principle.

Since you will have different steps to the home equity release process, you will want to have advice along the way. Here are some of the steps you might want advice on:

1. Post-groundwork advice when you have read all you can about equity release schemes and particularly about an interest only lifetime mortgage is beneficial. Advice clears up any points of worry you might have.
2. An application is required to determine if you qualify for any equity release option. It can be a good idea to explore the application with the help of an adviser to read through some of the legal jargon.
3. The next stage is even more imperative with regards to advice as it stipulates the true point of decision making. Once you are approved for a plan or plans, it is time to decide what your best option is for you and your remaining family. Here legal and financial advice on potential pitfalls can be golden.

Interest only lifetime mortgage plans are there to help you as a retiree to live your life in comfort with minimal worries. An adviser in this financial market ensures you go in with your eyes open before signing any contracts.