It is important to find and explore options when it comes to financial planning during retirement. After all, correct planning is the only way to optimise our financial resources and make the most of time after we retire.

Equity release is a concept that has caught on quite rapidly in recent years. Many people have reservations about equity release schemes, particularly because more and more people are opting for it earlier in life. Critics also worry about the loss of value and inheritance and the disproportionate debt that can build up.

However, interest only lifetime mortgages can make financial sense, as they require only repayment of interest, and the balance remains constant throughout. The Halifax retirement home plan was an example of this type of scheme. This scheme has now been withdrawn, however, Stonehaven offer an alternative to the Halifax Retirement Home Plan. (more...)

If you are considering equity release schemes as an option for your retirement then you need to know that there are two main equity release plans and within those two plans there are multiple variations. Those variations will depend on your immediate needs and your provider will suggest what might be the best options for you.

For now though it is a good idea to get to grips with the two main plans available. One option is the lifetime mortgage. A lifetime mortgage is basically a particular kind of loan which is for people over the age of 55. It permits the release of equity from your home through a secured loan. Either you can pay the interest on the loan monthly which will limit your debt or you can let it accrue and pay it back upon sale.

Or there are home reversion plans. In this plan you would sell either all or a portion of the ownership of the property. (more...)

If you are 55 or older, of retirement age, and you are considering options to increase your finances then equity release is an interesting option to consider. You might be asking yourself, though, how does equity release work? Well here is a basic idea of how it works.

Equity release schemes are plans that allow you to raise money from your current home by releasing some or all of the equity. In an equity release scheme you would essentially take out a loan against the value of your home.

You and your partner or spouse, would retain the right to live at the property and the payment of the loan would come from the sale of the home upon the death of you and your partner, or when you both move out. (more...)

While equity realease schemes can be a good way of getting funds from your current property it is important to bear in mind that just as with everything else, a cost will be incurred. Equity release is in a sense a kind of loan and as with any loan there are evaluations and assessments that need to be done.

So when considering an equity release it is also important to consider the potential cost to you. The cost of an equity release scheme will depend on what kind of equity release scheme you choose, as well as the provider you choose and the value of the property.

In order to find out the exact amount it will cost you, you will need to speak directly with your provider, but here is a rough idea of where those costs might come from. Initially there will be an evaluation free, an expense incurred when the assessment of your property is done. (more...)

Deciding to go for an equity release scheme is understandably a big decision. At retirement age the thought of selling your home or taking out another mortgage is certainly not a happy thought and can bring many sleepless nights. The thought of a mortgage is a stress at any stage of life but when you mean to be relaxing into retirement this is hardly what you want to be thinking about.

An equity release scheme however will provide you with the extra funds you might need either to get through your retirement or make your retirement more comfortable. There are many reasons why an equity release scheme can help you through your retirement, but of course the idea of leveraging your home is never pleasant.

This is why if you are considering an equity release scheme it is imperative to find and speak with an independent equity release adviser. The question of course becomes where can one find such an independent adviser? (more...)

If you are of retirement age, over 60, and seeking to mortgage your home then there is an important option that you should consider. Instead of a traditional mortgage where you have to pay monthly instalments and interest there is another option. This option is tied to equity release schemes and is called a lifetime mortgage.

It is an interest only mortgage for the over 60s and the way it works is like this. With an equity release scheme you raise funds from your current property either as a monthly payment or as one big lump sum. You and your spouse or partner, retain the right to live there until both of you pass away or move out.

While the lifetime mortgage falls within the equity release scheme it is a variation. It is a particular type of loan for those who are over 60. (more...)

Retirement should be the time of life when you are able to relax after years of service and hard work. During our working years we save and invest in our retirement hoping that the sum will be enough to get us through. With the increase in the cost of living and the hard financial times we have fallen on, retirement funds are simply not holding on as they once did.

However, there are schemes available specifically to those over 55 which can help make your retirement more comfortable and secure. These are called equity release schemes and this lets you use the funds from a loan against your home as you wish. The loan is repayable when you and your partner pass away or move out.

There are two possible schemes available, home reversion and a lifetime mortgage. A lifetime mortgage is a good option if the idea of building up debt is a deterrent for you. With an only interest lifetime mortgage you only pay the monthly interest so that your debt doesn't grow. (more...)

Relative new comers to the equity release scheme market are the Landlord equity release schemes. This scheme as the name suggests is orientated towards landlords. It provides the applicant a cash lump sum that is tax free. The value of this lump sum is determined by the overall value of the property investment as well as how old the applicant is.

The start age for plans such as these is 55 and is applicable to a landlord of this age with a maximum of five rental properties. The landlord can raise funds from these properties. This system is called the buy to let mortgage market.

In this system there are no set dates of repayment nor are there monthly repayments as with a traditional mortgage. The loan that has been taken out against the property or properties is repayable upon the sale of the property which occurs when the borrower passes away or moves out. (more...)

In our current economic climate, many pensioners are in need of more than one source of income. Their pension plan or retirement funds are no longer sufficient to meet their daily needs. An interest only lifetime mortgage plan is a simple way for pensioners to obtain additional capital which can maybe also used to provide income if required. An interest only mortgage plan is available to people who are above age fifty-five.

The advantage of an interest only lifetime mortgage is that it helps to protect your inheritance. If you want to pass on your property to your children or grandchildren, but at the same time you want to release equity from your property while you are still alive, an interest only lifetime mortgage is the best option for you.

So how exactly does an interest only lifetime mortgage help you to protect your inheritance? (more...)