Exclusive Benefits of Equity Release your way

May 28, 2013 at 8:23 am | Posted in Equity Release | Leave a comment
Tags: equity release, equity release scheme, mortgage policy, release equity from house, right of tenure, tax free income

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It’s a hard truth that most retired citizens are ignorant of right financial plans that can simplify their retirement. In spite of poverty in their life, most of them are either unwilling to opt for a beneficial plan or do not have adequate information on these plans.

Well, equity release is one such scheme that promises of a struggle-free retirement life. The equity release market has grown in leaps and bounds over the years. This scheme promises to fund the basic needs and requirements of yours in most sensible and rational manner.

Almost every one of you goes for a thorough research on the financial matters. Well, here too, you need to do proper home work before releasing equity on house.

Right of tenure with equity release

Most of you might be concerned about the need to move from property after taking a mortgage policy against your house. While majority of the mortgage policies ask you to vacant the house, once you have put your house on mortgage but equity release does not. Under this scheme, you are give the right of tenure that means you can live in the house for rest of your life.

No need of monthly repayments

Paying monthly interest is a burdensome task for a large number of pensioners. Most of the earned income is spent in repaying the monthly interests leaving the senior citizens in a fix situation. If you are one of them, who find it tough to make monthly interest payments, equity release is the right plan to go with.

Equity release plan offers certain flexibilities in the way you would like to repay the mortgage. While the basic remains constant, the initial owed amount is repaid at the end of term; monthly interest repayment is not required. As equity release is a lifelong affair, interest builds up over the loan term and added to the main amount, which is repaid after the death of customers or when the decide to move into long term care.

Tax free income

Another interesting thing about equity release is that you receive tax free income. Most of you are concerned about the taxes that you are liable to pay after taking investment plans or other pension plans. Unlike some of the other pension plans, equity release provides you tax free income from your house.

Investing equity release income

In the long list of equity release benefits, usage of income is next. Whether you want to invest it on personal lifestyle improvement or home renovations and repair, equity release is the right choice to go with.

Interest rate to fall in recent future

Last but not the least; many of you are concerned about the charged interest rates on the equity release products. Although given the kind of benefits, charged interest rates can be justified but there are some recent developments in the market suggesting that interest rates can fall further in coming months.

Equity release does not only provide you a well balanced life in retirement but it teaches you to be sensible and responsible for own life.