Equity Release Plans
What is an Equity release
plan? An equity release plan is where you take out equity
on your property allowing you to release money with a tax-free lump
sum and monthly payments as income. Basically an equity
release plan is a loan from your bank against your house.
Having that money in the later years of your life could be beneficial
to you as the increasing worry of pension shortfalls are growing
ever closer. Many people are now taking out such plans because of
the shortfalls in their pensions. Does this mean that these plans
will become increasingly more popular in the future? Many people
use the lump sum money for home improvements, to get that conservatory
that they wanted or a new kitchen or bathroom.
Would an equity release plan be the answer for you?
It is a huge decision to make when you are considering taking on
such a plan as there are many different types for you to choose
from. You have to take into consideration your family as what you
leave them will be less than before. You have to take into consideration
your state benefits and how they will be affected. Choosing the
right plan is essential for you as choosing the wrong one could
mean losing out on thousands of pounds as they all have different
terms and conditions and pay out different amounts of money.
What happens if you want to move house after taking out
an equity release plan? You can move house if you want
to when you have taken out an equity release plan and no matter
what happens in the future you can’t lose your home if take
out a plan with companies which are a member of
Safe home Income Plans,(SHIP). When looking at equity release
plans be sure that the company which you are considering is a member.
Seeking the advice of an independent financial advisor who will
guide and advise you is a good idea if you are at all in any doubt
whatsoever about the plan you are considering. Talking to your family
and getting their opinion will also be a good idea at helping you
make up your mind.
The Equity Release Information
Centre has devised a report in which it gives you information
related to equity release plans and gives you information on the
most frequently asked questions. Within the report people who have
already taken out an equity release plan give you their comments,
both good and bad, about their experiences.
If you are thinking about taking out a plan then there is lots
of information that you need to collect and also you need to find
out if you are a suitable candidate. You need to be aware of your
circumstances and your needs and which plan would best suit this.
Never forget that this is ultimately a secured loan on
your property and that the bank will own part of your home.
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