Relax In Your Retired Life With Equity Release Schemes Uk

By Author: Jimwright
Total Articles: 100
Comment this article

Releasing equity is one of the most popular ways of securing your retirement life in UK. With the amount of pension that senior people draw and with the increasing expenses, it is very difficult to sustain. This investing in various equity release schemes UK is a good option. Within various types of equity property release schemes, you can choose the one that suits you best. There are also many financial consultants available who can guide you through the schemes in case you have difficulties in understanding things.


The basic concept of equity release is that you take money against your property but you do not have to move from your house. In equity property release, you just unlock the valuation of your property. Only people over the age of 55 years can opt for the various equity release schemes UK and get maximum benefit out of it. The money that is provided against the property can be taken one time in a lump sum or it can be taken on a monthly basis. This depends entirely on the owner of the property as what mode of payment he feels best.


There are basically different types of equity ...
... release schemes UK. Here are some of them, which are the well known ones. All the schemes have positives and negative elements. Choose the one that seems OK to you.

Interest only mortgages – In this equity release scheme UK, you are at the liberty of borrowing a bulk amount of money against the valuation of your property. You can pay the interest monthly or quarterly as suits you. However, this will enable you to have lump sum money with you and you can plan many things with the money. The best part about this equity property release is that the amount that is to be payed back is fixed and the rate of borrowing is also fixed.


Home Reversion Schemes – This is one of the most availed equity release schemes UK. In this scheme a portion of the property or the total property is sold to a reversion company. In return you are either paid a lump sum amount or on monthly basis. You can live in the same property till your death, but after your death the property will be sold out and the reversion company will get the payout. The reversion company will also give a certain percentage of the current market value on the valuation of the property or the portion of the property that was sold.


Lifetime mortgages – Lifetime mortgages is one of the most popular equity release schemes UK. In this equity property release scheme, the interest on the property keeps on rolling in the form of a loan. The lender gives the owner of the property a bulk amount of money or promises to pay the money on monthly or quarterly basis. The interest amount and the amount borrowed is repaid after the property is sold after the death of the owner of the property.