Discover the truth behind the equity release mortgages
Here are some interesting facts about the equity release mortgages just for you and the other retired home owners. There are several methods available for the equity release plans and that includes the releasing of partial equity on the property as well as complete release of the equity on home. There are also various options of getting the equity amount, for example you can opt for the amount in one lump sum, or opt for the drawdown facility or can also opt for the equal instalment in the payment over a fixed period of time.
There are mainly two types of equity release mortgages available in the market. They are the home reversion schemes as well as the life time mortgages. Both these schemes are available for home owners who have a sizable equity on their property. The lifetime mortgage is a plan in which a mortgage is secured on the home after all the finances have been redeemed. The equity release in this case also can be obtained either by a lump sum amount or fixed equal instalments or with the help of the drawdown facility. In this kind of plan, there is no payable interest during the term of the mortgage. Instead the equity release interest rates will be rolled over into the balance of the loan.
The balance of the loan is to be repaid when the property is sold or when the home owner moves into the long term care. In case of the home reversion scheme, you must sell the entire property to the equity lender in exchange of a lump sum amount or in exchange of a fixed instalment amount. But you can continue to stay at the home premises while paying a nominal amount as rent. When the property is sold eventually, the scheme lender will take his share of the proceeds and pay the balance amount to you.
The equity market is growing with each passing day and it can be expected to reach a new height in the coming few years. This also implies that the equity release interest rates are also going to go up considerably. Thus it is a good idea to opt for the equity release mortgage schemes for your home in order to secure a good financial future for yourself and your family. It is thus a good idea to get in touch with the equity experts from the equity market and get going with such great schemes.
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