An equity release scheme can prove to be beneficial to you in many different ways. An equity release scheme allows you to obtain equity that is tied up in your property. Most home owners are not aware that they can release equity from their property especially in their retirement. There are many different types of equity release schemes. The basis of any equity release scheme is your property which you can use as collateral in obtaining a loan or which you can sell. An equity release sourcing wizard can help you learn more about the potential options available to you.
In order to choose the best equity release scheme to meet your needs and requirements, you need to be able to compare the advantages and disadvantages of each equity release scheme. An equity release sourcing wizard can be a very beneficial tool when comparing equity release schemes. The equity release wizard will help you to filter out the equity release schemes that are the most relevant to you. It will narrow down your search to the schemes that best apply to your circumstances. You will however have to provide the wizard with the necessary information that is needed for it to be able to filter out the equity release schemes that will best suit your needs and requirements.
Choosing Wisely Changes Retirement
Choosing the right equity release scheme can make your dream for your retirement a reality. Choosing the right equity release scheme by using the equity release sourcing wizard will supply you with extra capital which you can use to do all of the things you were not able to do during your working years.
It is very important to understand that the equity release wizard should not be seen as a substitute for financial advice. You will need professional advice from a qualified equity release adviser who will be able to help you to make the right decision; however, an equity release research tool can be a very helpful assistant in this process.
Gaining Some Knowledge Here
It is impossible to replace an adviser completely; however, a little information can be provided here to help you choose between the schemes you might come across using the wizard. Having some knowledge of lifetime mortgage & home reversion plans is ideal to at least get a grasp of how these plans work before receiving advice.
A lifetime mortgage is just one type of equity release scheme. It is a retirement loan because you can take out the mortgage without having a job or regular employment ncome. In fact you need to be 55 years old at least to obtain this financial product. The difference between traditional and lifetime mortgages is the repayment basis. There is no repayment during the life of the loan with a lifetime mortgage. The repayment is due in full as is any compounded interest at the end of the agreement. The end of the agreement may be due to homeowner death in which a joint ownership, married couple, dies or one dies and the other decides to move to a new home. A person might move to a care facility or just a new house that is smaller. In any event the home would need to be sold to repay the loan, unless life insurance covers it.
There are different options in terms of lifetime mortgages which are: drawdown, lump sum, interest only or enhanced schemes. These four are specialised products created to fit the needs of retirees. You will want to ask your adviser or use a sourcing tool to find out the differences between them.
The second type of equity release scheme is called a home reversion. In this option you actually sell your home before death. You sell a part of it or the entire home. It is up to you how much you decide to sell. Of the portion sold you will gain a percentage of its value based on the full market value of the home. The difference between this and lifetime mortgage is that you have no repayment or interest at the end. Instead, the remainder of the home is sold giving your beneficiaries cash. If you decide to sell before you die you would have cash to live on in a retirement community or new home.
The final recommendations should come from a professional and qualified equity release adviser who has sufficient knowledge and experience in the equity release industry rather than the equity release sourcing wizard. When considering equity release, make sure that you contact a professional adviser even if you are using an equity release sourcing wizard. One such independent company is CompareEquityRelease.com whom with their regulated advisers can source the best equity release scheme for you. Their freephone number to call is.