Retirement can be the greatest concern of your life, because this comes with too many difficulties, such as no payment, little pension amount, scanty savings and poor health condition. Well, this condition is obviously troublesome for the retirees and holds back them from getting the mental peace and rest in their post-retirement life. Well, if you want to get rid of this situation, go for applying to the home equity release plans, because it helps you to live a better and easier life without any financial issues. read this article
In this age, where gaining financial freedom is a concern of all, knowing about equity release mortgage is really a common matter. However, most of them possess some wrong conception about the financial plans. Well, if you are looking for details about these equity release schemes, here is what you can look up for.
Is a home equity release plan safe to borrow?
This is the common question ask by the people, when they go for applying to this retirement scheme. Yes, equity release schemes are totally safe to go with because you get to make a genuine deal based upon your property.
You set the deal upon your property with the equity release providers and get a good amount of money without selling it. Yes, you get to retain all your rights upon the property till you live and after that the lenders sell the property to get back the amount.
There are different types of equity release schemes available, such as:
This home equity release scheme allows you to borrow a good sum of amount without letting you make any repayments. Even, you get to live in your own property retaining all your rights as it is. The amount of money you get in this scheme, depends upon your age and the value of the property in which you are living.
With this home equity release plan, you don’t sell your home. The deal, which lent you the amount, is set upon a fixed plan, where it is decided that the amount you get, will be taken back after your death by selling your property.
The amount you get by setting the deal of lifetime mortgages is charged with interest and the longer this equity release mortgage scheme lasts, the more you get to pay back.
Lifetime mortgages are of two types, such as:
-Fixed rate lifetime mortgages
In these plans the interest rate remains fixed.
-Variable rate lifetime mortgages
The rate of interest in these plans differs according to the market condition.
Home reversion schemes
In these home reversion schemes, you get to sell a part of your property. In this way, you get to earn a good amount of money, without selling your total property and retain all your rights intact upon a part of the property.
The amount you release using this home equity release scheme depends upon your age and the value of the property. However, you don’t get to return the amount because you sell a part of the property to get the amount.
So, go for applying to this equity release mortgage schemes now, because these home equity release plans give you a better and safer life to live ahead.