How to choose your best equity release plan
Financial crisis may happen to any of us anytime. You need not to be poor to suffer from it. While you are doing some job, you can manage to deal this problem quite easily, but after you retire your life will never be the same. Before your retirement, you have some steady source of monthly income. But as you retire all the steady incomes are gone and now you have to live with your savings from your life earnings. Unless you had opt for some pension plans which will give you a few monthly allowances, you are bound to suffer from financial distress. But if you some property in your name, then you can give yourself some relief from this monetary problem. You can opt for some remortgage equity release plan that will help you to regain your financial status.
Now talking about remortgage equity release, first you have to know the basics of the scheme. you need to keep in mind that the rates offered in these schemes are immensely variable with time. So you need to consult a professional who will guide you in your investment. As there are two types of plan- Home Reversal and Lifetime Mortgage, you need to consider your plan according to your need. Lifetime mortgage plan will give you lump sum of money or a monthly installment against your property which will be legally transferred to the lender after your death. On the other hand, home reversal or the remortgage equity release plan will be like selling your property either fully or partially to the private lender. It should be noted that the money you receive is total tax free and the best part is you need not to move out your property. This way, you will retain your property and have some money in your pocket. Though there are many companies that offer this plan, it is advised to take some professional help to secure your financial safety by choosing the best equity release plan.
While choosing your best equity release plan, you need to consider some things. You may opt for some monthly installment scheme as it provides for an opportunity to collect an accumulated interest on the sum. You also need to consider the age factor as the higher your age is, the more you will be benefited. As industry suggests, the older people are generally die earlier, so the quicker the property will be taken over by the lender.
In short, your best equity release plan have to be chosen carefully considering your age, amount of property, interest rates and payment schemes.
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