Equity Release

Using equity release to combat financial turmoil

2011-12-12T17:17:00.000Z

The current global financial crisis has affected everyone in many ways. For those who have retired or were planning to retire, the credit crunch and related crash in the markets have wiped £billions from pension funds. For many, savings and pensions that were once thought to provide a strong foundation for retirement have been compromised, and these people will need to supplement their pensions with other financial products.
X
A great option for these people is to look into an equity release scheme. A great place to start researching how best to conduct the release of equity from their property is to start with equity release calculators; also known as lifetime mortgage calculators. These online tools are very helpful for providing basic information to start a discussion over the potential options available for those looking for equity release schemes and products.
X
The equity release calculator, or lifetime mortgage calculator, is the first stop for many researching equity release schemes. The great thing about these easy-to-use online tools is that they provide an idea of what is possible. The popular online equity release calculator at www.theequityreleasebureau.co.uk/ does just that. This website will provide you with in depth equity release information.
X
The equity release calculator asks for the age of the youngest homeowner. This is important, as equity release schemes are only available to those over the age of 55, and age bears an important part of the value of equity release. The value of the property is also required, for obvious reason as equity release schemes are generally based on the principles of the interest only home mortgage.
If there is any other mortgage or loan that uses the property asset as collateral, the outstanding value of these should be included as well, as they affect the overall value of what is available in an equity release scheme. Therefore any existing security on the property such as a mortgage or secured MUST be paid off prior to completion. This is usually resolved by using monies from the equity release itself, as the process can be completed by a simultaneous transaction at the solicitors.
X
The first option presented through this equity release calculator is for the most common and standard plan. This is based on a person in good health, starting from age 55. For those who have suffered from ill health may be entitled to an enhanced lifetime mortgage programme. The total potential maximum amounts for each health option is listed for each. The equity release calculator provides a clear understanding of what the boundaries of the financial package will look like. Then it is a matter of discussing what the options for finance are within that value. The calculators will provide a maximum release of equity figure. Bear in mind this should not always be an indication of how much should be taken. Best advice would be to plump for the optimum amount based on your requirements instead.
X
Alternative options than roll-up equity release schemes could include an interest only home mortgage, or a more specialist Stonehaven interest only mortgage scheme. The equity release calculator is linked to an accredited financial institution, so it is possible to start discussing that figure right away with a financial expert. However, for those looking to shop around, the figures will be helpful in their research and lead you on the way to find the cheapest equity release plan and allow you to speakto an expert who can compare equity release plans for you.s.
X

Interest Only Equity Release

2011-12-02T14:35:00.000Z

What Interest Only Pensioner Mortgages Are Currently Available?
The aforementioned issues have arisen with the tightening of interest only criteria. Lenders will now insist on most mortgages expiring by age 75 & this will usually have to be on capital & repayment basis. More often than not this will result in the monthly cost being prohibitive, as paying off a mortgage of £50,000 over a short term of say 10 years can be out of most people’s affordability levels!
Nevertheless, a specialist firm like the Equity Release Bureau will compare equity release lender has analysed the situation better than most & hence we unveil the Stonehaven Interest Select Plan.
Offering SHIP security & choice as to the size of the monthly contribution, Stonehaven have covered all bases. This interest only lifetime mortgage provides lifetime fixed interest rates starting from just 6.13% thereby offering affordability now & into the future. With pension incomes rising over the years, but the monthly mortgage payments guaranteed to remain the same, the Stonehaven interest only equity release plan provides protection from future increases in interest rates.
However, it doesn’t end there because if financial difficulties do arise then there is always the option to switch it over to a roll-up equity release plan with Stonehaven. No further payments are then required & dependent upon whether the switch was planned ahead or not, will determine whether an extra 0.2% is added to the rate.

How can equity release help you?

2010-08-16T18:07:00.000+01:00

You may be looking for a way to earn extra money for your remaining life or you may want to financially help your kids or family members, go on a holiday, etc. In such situations, an equity release scheme could be the perfect solution for your problems.
Moreover, if you are looking for the best way to create a pension with annual payments while continuing to live in your property, an equity release scheme can also be an option. Irrespective of the reason, taking professional when gathering equity release information will make the entire process smooth.
With many people already enjoying the benefits of equity release schemes, it is certainly the best way to generate income after your retirement, but before chhosinga scheme compare equity release plans The loan that you take against your property will be paid off by selling your property after your death.

Determining whether or not equity release schemes suit you

2010-07-23T12:43:00.000+01:00

Determining whether or not equity release schemes suit you

The popularity of equity release schemes has risen a great deal in the last few years. The main reason for this is that they are geared towards meeting the needs of senior citizens. In addition to this, they can be attained quite easily. It is for this reason that more and more financial advisers are recommending equity release scheme to senior citizens so they can make ends meet for the future.
However, people can only be eligible for equity release schemes under certain circumstances. The following are some requirements for gaining equity release schemes.
Age
Most equity release schemes are available to those who are over 55 years. But there are other schemes that are applicable to those over 65 years. The age requirement is meant to provide additional financial stability and security for those who get a limited income through benefit payments or those reaching retirement. Age determines the amount you gain through these schemes.
Ownership
Another requirement to be eligible for equity release schemes is complete ownership of the home being used as equity. As the value of the home is the important factor in securing a loan, it also determines the amount that can be borrowed through equity release schemes. However, it is necessary for mortgages to be cleared before a scheme can be undertaken.
It is important to understand that different people have different requirements and that equity release schemes may not be suitable for everyone. For this reason, it is necessary to learn as much as you can about equity release schemes. You should also make sure that you get appropriate advice from a professional company offering independent equity release information.

Unlock the money from your home with equity release

2010-07-09T10:29:00.000+01:00

July 2010

Equity release schemes - A source of income for the elderly

Friday, July 2nd, 2010

We all like to save money, but in today’s economic climate sometimes this can be difficult.
However, saving is actually a source of investment that proves to be helpful in times of financial trouble. And, the need to save and have an investment fund available is more important when people reach old age.
Equity release schemes are a good solution for older people to overcome their income problems if they do not have adequate savings. Current equity release schemes provide different means in which to provide peace of mind to elderly people so that they no longer need to support themselves with only a small pension.
X
Home reversion equity release schemes
With the help of a home reversion scheme, you can sell your home or a part of it to a reversion company in return for a monthly income or a lump sum or both. Technically, you will become a tenant of , although you continue to live in your home rent free. You receive a lifetime tenancy from the reversion company which gives the right to live in the property for the rest of your life.
When your property is eventually sold, generally after your death, the reversion company will get its payout. For instance, if you sell 50% of your property to a reversion company, they will get half the sale proceeds including any escalation in the property value. Just as importantly your beneficiaries will also receive a guaranteed 50% of the sale proceeds. If you sell 25% of your property, the reversion company will get 25% of the proceeds etc.
Additionally, the reversion company will also pay you a fraction of the present market value for the share of property it purchases from you. This is because you continue to live in the property till your death, and the reversion company will have to wait to get their return.
X
This illustrates one of the main advantages of home reversion schemes in that you can guarantee the percentage of the final property value that can be passed on.
This differs from ‘roll-up’ equity release schemes whereby there is no guarantee as to how much the beneficiaries will receive, if anything. Nevertheless, a no negative equity guarantee is included in all SHIP (Safe Home Income Plans) equity release schemes to provide the guarantee that no more than the final property value can be owed to the lender.
X
For further advice on Home Reversion schemes please ring The Equity Release Bureau on freephone 0800 9881289
X

Tags: CHEAPEST EQUITY RELEASE,COMPARE EQUITY RELEASE,EQUITY RELEASE INFORMATION.

Home & Capital Increase Lending on Home Reversion Plans

Friday, July 2nd, 2010

Good news is back in the equity release market as Home Reversion Plan provider Home & Capital increase on two fronts the amounts they will lend on their products.
X
Recently there has been a reduction in the number of equity release schemes available in the market which has resulted in fewer options for those in need of cash for their retirement plans.
Therefore news that Home & Capital are reversing this trend with its home reversion plans is excellent news.
X
The latest calculations now show that for a male aged 70 the home reversion rate has now increased from 43.25% to 47%. That’s a healthy increase on the amount Home & Capital will lend & represents a good increase on the equity release scheme funds clients will receive.
X
Secondly, all Home & Capital reversion plans have had an increased the ceiling on the maximum amount customers can raise.
This has now risen by over 41% from its previous maximum of £85,000 upto £120,000.
The maximum percentage of the property you can sell with Home & Capital home reversion plans is 95%.
Existing offers on the Home & Capital reversion plans will continue. This includes no arrangement fees & a special offer of a free valuation on all applications made before 31st July 2010.
The minimum age for the home reversion plans is 65+.
X
These increases come at a time when retired people who wish to consider equity release are being hit on most sides.
Lower interest rates on their savings coupled with the impending increase in VAT will all affect the elderly population greatly over the next 12 months & beyond.
Therefore, there is some light at the end of the tunnel for the elderly who need financial assistance & a supplement to their capital or to boost income.
X
With property values showing a steady, yet unspectacular increase since the start of 2010 many people in retirement can be sitting on a large amount of equity that can be utilised.
People are increasingly beginning to embrace the idea that their property is a legitimate asset that can be used to release equity - either via downsizing or via equity release schemes.

Releasing equity from your home

2010-07-03T13:05:00.000+01:00

Gone are the days when you were required to sell your property to unlock the money in it.

Instead, equity release enables you the privilege of staying in your home while financially benefiting from the capital tied up within it. You can use the value of your property as a means to receive tax free cash. You can receive this amount in the form of a lump-sum payment or as monthly instalments dependent upon which type of equity release scheme is most suitable for you.For a free equity release information guide or to compare equity release schemes call The Equity Release Bureau on freephone 0800 9881289.

Equity Release interest rates on the rise

2010-06-07T12:02:00.000+01:00

This week has seen one of the UK's largest equity release lenders announce increase rate rises across all of it's lifetime mortages to take place by the end of June.

This is another sign that what might be the best deal today may not be tommorrow. This underlines the importance to seek independent equity release advice so you can compare equity release in order to find the cheapest equity release deals from a constantly moving market place.The Equity Release Bureau provides independent equity release advice with a "best deal" guarantee.