Tag Archives: Interest Only Lifetime Mortgages

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.

Why is Stonehaven Becoming Such a Dominant Equity Release Provider?

The Halifax Retirement Home Plan allowed those over 65 years to borrow a maximum of 75% of the value of their home. They were required to only pay the interest. The amount borrowed was repaid when the property was sold after their death. Halifax however stopped this plan due to the fact that it was just a small percentage of its intermediary business. Since Halifax withdrew their Retirement Home Plan, a massive void has been created for pensioners who are seeking interest only lifetime mortgages. Some pensioners are still searching online for the Halifax Retirement Home Plan. There is now an answer in Stonehaven equity release plans.

Stonehaven equity release plans have been able to fill this void. The equity release schemes offered by Stonehaven are very similar to the Halifax Retirement Home Plan; however, these plans are available to those who are over 55 years. Stonehaven is currently one of the most popular equity release providers due to the benefits it provides to home owners. The amount they lend on interest only is solely based on age and property value. NO income requirement is made; therefore, it could be classed as a self cert mortgage, rare in today’s times.

First of all, Stonehaven guarantees no negative equity. This means that your property will be sold for the best price obtainable to repay the initial loan amount. However, if the amount obtained for the property is not sufficient to repay the initial loan amount and the solicitor’s fee, Stonehaven will not ask your beneficiaries to pay the extra costs. You are therefore guaranteed to never have to pay more than the value of your property, a major relief for your beneficiaries.

Stonehaven also guarantees portability which means that if you move to a new property which meets the requirements of Stonehaven equity release plans, your existing equity release plan with the same terms and conditions can be transferred to your new property. If your new property is lower in value compared to your previous property, you will have to repay a portion of the loan. However, if your new property is higher in value than your previous property, you can choose to increase your loan.

Other benefits the equity release schemes of Stonehaven are:

• One fixed interest rate for the entire duration of the loan
• Repayment is only required after your death or after you have moved into long-term care
• You retain full ownership of your property until it is sold

Stonehaven is not the only mortgage provider for equity release schemes. You have a variety of other options; however, they may not offer these same benefits. The fact that they have an interest only mortgage where other companies may not makes them an interesting party in the lifetime mortgage industry.

Stonehaven certainly filled a void in the interest only sphere. In most cases when you come across an interest only mortgage you have to pay the interest back with disposable income. It means unless you can prove you have extra income that you can use towards the mortgage you may be denied for the plan.

In the event you find some worrying disadvantages with the Stonehaven plan or you do not like the interest only option, you have other plans to choose from. Stonehaven equity release plans provide you a myriad of choices from standard equity releases for retirees to drawdown plans. With these options you either take a lump sum paying no interest until the end of your life or removal to a care facility, or you take money as needed with the same benefit of paying after death with the sale of your home or when you move out to a long term care location.

As you shop around, compare, and search for the plan that seems most helpful to your situation, consider the inheritance you will leave for families. Your family may want to keep the family home or they may appreciate cash upon your demise. If your family is really attached to your home they may not appreciate you selling it for a retirement mortgage like the Stonehaven equity release plans in discussion here. They may want to move in with you or supply you with funds during your retirement to ensure your home remains in the family.

These options might not be open to you and your family. It is still a good idea to discuss what you might do financially to ensure they understand the potential burden they will face. Speak with a financial adviser at Stonehaven too as a way of finding out more about Stonehaven equity release plans.