Equity release is not just for the over 55s

By: Amanda Gillman
Submitted: 2008-08-21 14:00:34
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

If you are struggling to accumulate a decent pension and starting to worry about how you are going to fund your retirement, you may have considered an equity release scheme.

Providing you have a property and are over 55, you could qualify for an equity release scheme in the form of a lifetime mortgage or a home reversion plan. Both are pretty straight forward in theory in the way that you borrow money against your house on the premise that you will pay it back in payments or through sale of the house after your death.

If the sound of an equity release scheme is confusing to you, then you could do what hundreds of other baffled people are doing and get your children to look into it for you. According to the big names in equity release, more and more people under the required age of 55 are making enquiries about equity release schemes on behalf of their parents.

So, if like so many people, you are property rich but cash poor, you could turn to your property in retirement with the help of your younger, computer minded off-spring. However, don't forget that taking out an equity release scheme could resort in your children losing out on inheriting the family home, so tread carefully!

Nowadays the quickest and easiest way to compare financial products such as equity release schemes is through various internet websites that do most of the comparing for you. This is probably what has spurred this latest trend of people under 55 enquiring into equity release schemes, as children agree to help their parents out with the technical and at times complicated processes involved.

Just in case you aren't lucky enough to have kids wiling to do the equity release shopping for you, here are a few tips:

  • Find out as much as you can – typing 'equity release' into an internet search engine, returns a wealth of information, including about Safe Home Income Plans (SHIPs) that come with guarantees that are aimed at  protecting you
  • Speak to an equity release adviser who will be able to take your individual situation into account
  • Even if your family are not willing to do the research for you, make sure they are involved and not left shocked at the prospect of never inheriting the family home
  • If you decide to go ahead with a scheme, use a solicitor, like you would for a normal mortgage to help you fully understand what you are signing up for
  • Take your time – this is your house remember, so don't act lightly
Read more on equity release.

Article source: Expert Articles

Most Recent Articles in Mortgage Refinance category

  • How to Fight Countrywide Loans - By: Kevin Levonas
    Foreclosure Case Law: Tina vs. Countrywide Home Loans Pt.1 An interesting case was decided recently in California: The Tinas fell behind on the mortgage payments and Countrywide foreclosed. the Tina's decided to fight for their homes.
  • H4H program... Hope or Hopeless? - By: Kevin Levonas
    Article on the new H4H program and its current effect
  • Myths and Facts about Lenders' Assistance to Homeowners - By: Katherine Marfal
    About Lenders' Assistance to Homeowners. Debunking some common myths to benefit the home owner.
  • Practical Guide To Prosessing Your Own Home Loan Modification - By: Kevin Levonas
    A mortgage loan modification, when completed succesfully may be the best option benefitting both the bank as well as the home owner. This article helps you in the processes of preparing for and processing your own home loan modiification.
  • Now's the time for First time home buyers to buy their first home - By: Alice Shown
    Realtors are saying that this is a great time for first time home buyers to buy a home.
  • Mortgage plan expected to ease rates pressure - By: Paul Sharp
    The federal government has been planning to boost the mortgage sector to meet the increased interest rates among much expectation. However, lenders apart from the bank have been banned because the funds provided by them have been dried up due to the global disaster.
  • Pros and Cons of Reverse Mortgage - By: Paul Sharp
    Reverse mortgages is used to help aged people who have reached the age of sixty two years and above to secure financially by providing them secure housing and repairs to their damaged property. There are both advantages and disadvantages of reverse mortgages. This article gives an analysis view of reverse mortgages.
  • Dyer Beech: No Complaints From Clients When It Comes To Fighting Mortgage Fraud - By: Felicia Newman
    Dyer Beech has been in the business for some time, and by simply looking at the feedback of clients and other organizations, it is known to afford the best possible level of service to its customers, with no complaints whatsoever.
  • Refinancing Risks and Rewards - By: Lisa Gray
    The costs associated with a refinance should be taken into consideration. The first is interest. Mortgage amortization works on the principle that you pay the majority of the interest early in the payment schedule. If you refinance early in the game, you are trading equity for a (possibly) lower payment.
  • Benefits of Second Mortgages - By: Davi db
    Second mortgages have become a common term in today's time. It is basically heard in the context of a home loan. In this article, we will tell you as to what do we exactly mean by saying second mortgage and also we will bring forth its benefits to the loan seeker.