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If you are a broke home owner above 55 years of age, an equity release plan could be perfect for you. Many pensioners got lots of home equity, significant properties with good value; but they are looking for ready money. Equity release has been touted as a suitable way of attaining pensioner mortgages. Using a reversion scheme or lifetime mortgage can provide you with a release of equity either in regular payments or a lump sum to add on your income.

Lifetime mortgages:  they are a good provision of cash for your retirement with no struggles of fulfilling regular repayments. This kind of equity release system presents you with a lump sum of cash now, or regular earnings for the rest of your being. You never have to be troubled about the monthly repayments.

Home reversion schemes: in this kind of system you will have to sell a section of your home in for an income or a lump sum of cash. You can still reside in your home for the rest or your being; though you will seize to be the owner. Some lenders may claim you pay rental fee. When you pass on and the home is traded the reversion dealer retains it’s allocate of the profits. However this system has been regulated by the Financial Services Authority.

Even though equity release is being appreciated as the suitable idea of getting a pensioner mortgage, it very important that you get legal and professional financial advice prior to closing any deal for equity release since it comes with some impact on your home.

Pros and cons

It is very beneficial to think cautiously before going for equity release; closing a deal for this system is such a brave step. As a homeowner you can take as much time as you can from the equity release inquiry step to actually settling on the deal. Weighing the pros and cons is evidently making sense.

Speak to an Adviser, both mortgage and equity release.

In any deal, many people want the assurance that they are closing a true deal; it is all the same with equity deals, considering a mortgage market with so many products to decide on. Often, a professional adviser could be the easiest and quickest way to the greatest deal. The expertise will spot your objectives and needs, explore the market and propose the product that ensembles your needs best. There are many advisers therefore you need to get the difference between them. All this makes sense since equity release can be difficult compared to residential mortgage, affecting the client's earnings until their demise, crashing on their inheritance tax plan and touching their state benefit right. If you settle on equity release you should truly embrace legal advice and also engage your family before any deals.

Reasons for seeking a mortgage/legal adviser

·         They have access to a collection of mortgage deals and can easily sort through thousands of products and get the best mortgage for you.

·         They are completely experienced and competent in their field; they are in a better position to clarify all the terms and conditions of every mortgage of your interest and respond to any query you may have.

·         They save your time. Advisers subscribe to the high tech that allows them to swiftly identify the best deals accessible to you.

·         They save your money. By getting you the most viable package fee and interest rate, they broker can save you thousands.

·         They can get you exclusives. Several lenders may suggest exclusive agreements through brokers with a less interest rate and or fewer fees compared to what a high street can propose directly.

·         Minimum loan amounts. Your home will possibly have to hit a specified minimum value.

·         Equity release lenders criteria for instance minimum age {normally age 55 or 60}. Your age determines the percentages of your home you can borrow e.g. the older you are, the more you can borrow.

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