If you are edging slowly but surely closer to retirement, and you are concerned about whether or not your pension will provide you with adequate income, the chances are good that you are looking at alternative means by which to remain financially viable.
There are many financial products on the market that may help you; however, perhaps the most effective and efficient of these is something like the Stonehaven Interest Select plan an interest only lifetime mortgage in short, but one that works differently to any you may have previously had.
This variation differs from a conventional mortgage in several crucial ways and the most significant amongst these is simply that you do not make repayments on you loan. Because the scheme is designed to extend beyond your lifespan, the debt will simply be repaid by selling the house at a later date. (more...)
For many people, retirement is an issue that generates considerable anxiety. The prospect of a monthly income that is dramatically decreased is not inviting by any standards, and if you are struggling to work out how to make ends meet on your pension plan, you may well be looking into the possibility of equity release.
However, equity release schemes these days are not all about roll-up of interest. The latest innovations in the lifetime mortgage market now allow the repayment of interest, with a good example being the Stonehaven Interest Only Lifetime Mortgage scheme.
A further example is the Halifax equity release plan (and indeed all variations of this kind of financial product) allows you to get at the capital that you may have locked up in your residential property. You achieve this by taking out a loan and using the home to secure it. (more...)
If you are currently contemplating equity release schemes as a means by which to supplement your income during retirement, you will be aware by now that there is a lot of variation in this particular area of the market.
Indeed, equity release is something of an umbrella term, and there are several different types of policy included beneath it. However, while there are variations between each of these, there are also certain features that remain steadfast throughout.
Fundamentally, every equity release scheme allows you access to the capital that is locked up in your home, while at the same time ensuring that you can continue to live in the property as long as you need to. In addition, because the policy is designed to come to term at a time beyond your projected lifespan, you will not be required to make conventional monthly repayments. (more...)
If you are approaching retirement age, then you will be looking for ways to boost your current finances. This can be quite easily done through an interest only lifetime mortgage, also known as an equity release scheme when it comes to those in retirement age.
Whilst banks and finance providers will be more willing to give loans to the younger generation, older people are considered a greater risk in terms of longeviety, and thus they will find fewer options available to them. However, what is one option if you are over 55, is called an equity release scheme.
This simply allows you to get a continuous income based on the value of your house, whilst you are still able to live in your home. This can be beneficial, especially to those in retirement age, as it gives you a place to live whilst you can also have a form of income. (more...)
When it comes to retirement age, most of us are looking for a way to try and find some money in order to prop up a pension. Or, if you do not have a pension, to simply carry on and survive. This is where self cert mortgages such as the Stonehaven interest select come into their own.
Simply put, yes, there are self cert mortgages that exist for those in retirement age. These are more commonly known as equity release schemes, and allow you to gain a constant flow of income, usually per month, up to the value of your home, so that you can continue living after you have stopped working.
The downside to this, however, is that you are simply giving up your house. The money has to be paid back again, and it is assumed that you will simply give up your house in the long run to pay for it; hence you are only given money up to the value of your home. (more...)
With the current economic climate, more and more people are considering taking out what is known as an equity release scheme. This guide highlights some of the dangers involved, however, some of which are not always made clear.
1) An equity release is simply another way of getting into debt. You can take out money up to the value of your home, in order to secure a form of income, but it still carries the same risk as a mortgage, and it is certainly something you should not consider unless you are in retirement.
2) The equity release means that you are technically foregoing owning your property, meaning there is far less in the way of inheritance for any of your children or family. This is certainly something to consider when thinking about taking out an equity release scheme. (more...)
In the majority of cases, people who live with a mortgage all their life feel the need to try and get rid of it as soon as possible after retirement or even before. They feel if they can get rid of their mortgage by the time they retire then they will be able to live much more comfortably.
However, now, more and more of us are considering taking on a mortgage into retirement age. Why? Because there are several added benefits to doing so.
For example, if you spend your entire life simply trying to fight off debt, you will have no money left for enjoyment in your retirement. If, however, you have taken out an interest only mortgage, you can make the current financial situation work for you. (more...)
Equity release schemes have soared in popularity, as more mortgage owners consider how the housing market has grown in previous years and now want to release cash from their homes. If you are a mortgage owner who has already released equity from your home, remortgaging an old equity release plan is certainly an option.
You should therefore be aware you can switch plans and remortgage an equity release and take a look at the advantages of new equity release schemes that can be arranged to give you a better deal & certainly peace of mind. The reasons to consider switching equity release plans are as follows:-
More cash for important needs: As we get older, our priorities change. Sometimes giving our loved ones the peace of mind that we have always been thinking of them in the long run matters a lot especially when we are not around. Remortgaging your equity release scheme will give you the chance to have more cash for you or your family when times are tough. As the financial markets tighten and the Eurozone situation becomes more tense, being liquid with cash is absolutely critical.
The equity release schemes of Stonehaven make it possible for those who are older than 55 years to obtain an additional source of capital to support themselves in retirement by taking out a lifetime mortgage secured against their property. In exchange, the home owner needs to pay a certain amount of interest to Stonehaven each month until death or moves into long term care.
Stonehaven interest rates have been decreasing since 2011 due to the fact that the equity release market is becoming more competitive due to other providers such as Aviva and Just Retirement vying for the lowest interest rates.
However, the lowest interest only lifetime mortgage rate is offered by Stonehaven at 6.13% per month, which for a mortgage of £25,000 results in a monthly payment of just £128. Since the interest rates of Stonehaven are fixed for life, this will be a guaranteed monthly lifetime payment that a pensioner will have to pay for the rest of their days.
The product of Stonehaven that offers 6.13% interest per month is known as the Interest Select Lite and is available for homeowners who have good sources of income and are able to repay a certain amount of interest during their lifetime. Homeowners are allowed to choose how much of the interest amount they wish to pay and for how long. This is classed as a 'contribution' towards the payment & is unique in the mortgage industry. The minimum monthly repayment is just £25, with the maximum being the whole interest amount charged. (more...)
In 1965, the first equity release plan was introduced in Britain, which at that time had approximately 9.7 million people who were above 60 years of age. Retirees needed a simple way to obtain money to fund their daily expenses & provide a better lifestyle. Back then, equity release schemes were mostly utilized by homeowners who owned large and rich houses but were lacking in cash. They did not have a steady income stream and the plans were financially unstable.
Equity release has grown over the years into one of the largest industries for the retired population. Its growth brought along an entire industry of tools and marketing ideas to help homeowners. The age demographics has since changed & equity release now start from the age of 55. Previously, the proceeds from equity release were used for daily essentials, but today the proceeds of equity release are used to improve the lifestyle of homeowners. Equity release is used to fund vacations, dream cars, repay outstanding debt matters and home improvements. Equity release is now also beneficial to homeowners with deteriorating health. They can use the extra money these enhenced equity release schemes raise to pay to be cared for at home instead of having to move to a care home.
One of the most important tools that equity release introduced that is of great help to homeowners today is equity release calculators. Equity release calculators were first introduced over three years ago by the innovative Equity Release Supermarket website. This site has lead the way in advising clients easily and for free, on how much equity they can release from their property. (more...)
The best way to understand what equity release is all about is by looking at it as a way of providing financial liquidity. If the credit crunch crisis of 2008 taught us anything is that while fashionable investments may always come and go, cash is definitely king. Without cash you cannot do all the things that you want to do in your life because you do not have an immediate way of paying for your lifestyle. This is where the phrase, ‘asset-rich, cash-poor’ derives from.
The Equity Release Blog can be read so that you can get all the latest news and tips about the equity release market. In previous years, the Council of Mortgage Lenders found that the equity release market that includes lifetime mortgages was worth over £6bn. If you are curious about what equity release can do for you, it is important to read equity release material such as blogs and reports. Here are the benefits that blogs give you:
- Impartiality: When you are reading a blog, you are getting plenty of impartiality from it because the company that is writing the blog is giving you useful information that you can take advantage of. Impartiality is important so you do not feel like you are being given the hard sell.
Today, it is very hard for those in retirement to obtain a loan due to the fact that most of them do not have a fixed and stable source of income. In most cases, whatever income they do receive whether it is from a pension plan, annuity or some other form of retirement planning, it is sufficient to meet their daily needs. This makes it difficult for retirees to go on the dream vacation that they had always wanted to go on, to purchase their dream car, or to simply make necessary home improvements.
Retirees who are the proud owner of a property with a specific value do have one other option – equity release. Equity release allows retired home owners to obtain a loan secured against their property. Some equity release schemes allow retired home owners to sell a portion or all of their property. One of the main advantages of equity release schemes are that retired home owners are allowed to remain in their property for as long as they want even if they choose to sell a portion or all of their property. Another advantage is that no repayment is required during the lifetime of the home owner. This applies to most equity release schemes. After the home owner and his partner both die or move into a long-term caring facility, the property is sold and the equity release provider is repaid.
So how does one sign-up for an equity release scheme and is it possible to obtain an online equity release quote? It should be possible right? Today, almost everything is sold online so obtaining online quotes is as common can be. This however does not apply to equity release quotes. Although it sounds simple, the service of obtaining an online equity release quote cannot be offered by any equity release broker or provider. (more...)
If you want to secure money in your retired life, then one of the best ways to do this is with an equity release mortgage. What happens in retirement is that many people get a limited amount of money from their pension plans, which makes it virtually impossible to live a comfortable lifestyle. The other factor that is largely affecting pensions today is the increase in commodity prices and basic goods. Senior citizens therefore have to find an alternative way of earning additional income, and this is where equity release potnetially becomes very helpful.
On the other hand, it is imperative that you compare equity release criteria from the different schemes available before you settle on any. With websites setting up such as CompareEquityRelease.com, you can now analyze interest rates and deals available. It is also possible for one to check the amount of money that is available for them as they compare equity release using an equity release calculator often availed on the website.
Most of the companies offering this service have a web based calculator that one can use and get a rough idea of the amount of money that they will be getting, and the final figure will depend on ones age and health. One can compare the maximum amounts available for them using different rates, and even compare the interest rates from different companies. (more...)
Recently, there has been an increase in borrowers who are switching from interest only mortgages to repayment mortgages. In most cases, borrowers do not switch to repayment mortgages. They are forced into them. One of the most common reasons why they are forced into repayment mortgages is due to the fact that lenders are giving out loans that cannot be repaid by the borrowers and as a result, they force the borrowers to switch to repayment mortgages.
Switching to repayment mortgages has its advantages but it also has its disadvantage. First of all, repayment mortgages are more expensive than interest only mortgages. With interest only mortgages, borrowers do not have to pay back a lot of money on a monthly basis. They need to repay only interest . This is why these mortgages are known as interest only mortgages. Repayment mortgages on the other hand result in a higher monthly amount because they not only include the charged interest but also the initial loan sum.
Retirees are the people who benefit the most from interest only loans. Not having to repay the initial loan sum is an advantage because they normally do not have much other sources of income to do so. They however do need the extra money so being able to borrow it without having to repay it during their lifetime works for them. However, they are having to pay more each month because they now have to pay the interest rate and a percentage of the initial loan sum results in hundreds of pounds that they need to find on a monthly basis. (more...)
There are many home reversion plans on the market but none of them are as flexible as the Bridgewater Flexible Release Plan. This plan makes it possible for home owners to sell a part of their property in exchange for tax free cash, while still retaining the right to continue living in their home as long as they like. This plan has many benefits which is why they are the most flexible home reversion product on the market.
The main advantage of the Bridgewater Flexible Release Plan is the fact that it allows home owners to customize their plan in such a way that they can choose to release less than the maximum amount, that they are allowed to release. The amount that they should release is normally reflected in their initial spending plans for the first 12 months. The amount that they choose not to release is normally retained within the property and thus still providing an inheritance for their beneficiaries. However, the flexibility provided by Bridgewater is that you can release more money in the future by selling additional percentages to Bridgewater.
Other benefits of this plan are that it can help homeowners to purchase a new home. Most home owners as they get older may need to purchase a new house based on the fact that they may be suffering from physical disabilities and their current house may no longer be suitable for them. With the Bridgewater Flexible Release Plan, they can buy a new home and can transfer the plan if necessary since that the plan is transferable, subject to property type & value. (more...)
A drawdown mortgage is another variation of the regular lifetime mortgage. The main difference that is exerted between the two is the control over how the money is dispersed with a drawdown mortgage.
A lifetime mortgage drawdown plan permits you to set up what is called a maximum facility. This means you are able to take a small amount initially and then draw money as you need it from the maximum facility that has been created. The interest that is charged is also only charged on the money that you have withdrawn from the facility and not on the entire facility amount. This means that the debt does not build up as much as a normal lifetime mortgage where you get interest charged on the whole amount.
This means a drawdown mortgage gives you more control over your money, there will be less interest to pay and you can get your cash as and when you need it. However the facility is usually smaller than a lump sum, the facility is usually only available for a set number of years and further advances can carry administration fees. (more...)
An impaired equity release calculator is a tool that could be used to calculate the lump sum amount of cash that you are entitled to receive against releasing an equity built up in your house, all without loosing the ownership of your property. An impaired Equity Release calculator is also known as enhanced equity release calculator and is completely dependent on the health status of the person as well as the value of the property he/she holds under his/her name.
If you are a person with an age over 55 who is looking for a comfortable retirement solution then you must use an impaired equity release calculator to calculate the cash that could be released when buying an impaired equity release scheme. An impaired equity release scheme is helpful to you especially if you are suffering through some serious health ailment which have the effect of possibly reducing your life expectancy. In such cases, you are not only entitled to receive a larger sum of lump sum money but you are also entitled to get lower interest rate and that too without making any monthly payments!
Smoking, high alcoholism, several types of cancers, Parkinson's disease, diabetes, any serious ailment related to heart such as strokes, multiple sclerosis, underweight, overweight and many other disease comes under the approved list of health problems that could entitle you for an enhanced equity release scheme. Suffering from any of these implies that you have a lower life expectancy. (more...)