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 This scheme has now been withdrawn, however, Stonehaven offer an alternative to the Halifax Retirement Home Plan.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...)

Options are limited, but there are mortgage lenders that will still lend on an interest only basis in retirement. The problem is that most will only lend for a fixed term of years. This leaves the issue of what to do after this term expires as there are such limited options, post retirement.

Many lenders will only offer a term of up to age of 70 or 75 and usually with high street lenders this must be on a capital and repayments basis. For many this would be too expensive as the term will be short in order to pay off the amount borrowed, if they are already in retirement. However, a handful of lenders will lend and these are best sourced by finding an independent equity release adviser who specialises in retirement mortgages. Companies such as Compareequityrelease.com & Equity Release Supermarket are specialists in this market & do not be afraid to contact them on 0800 678 5159. However, there are exceptions to this rule, albeit not perfect criteria for all. A retirement mortgage with Leeds Building Society can be taken out until the age of 80, dependent upon retirement income and is only available via selective intermediaries.

Stonehavenequityrelease.org.uk is another resource where you can find information on the different equity release schemes available. Two of the most common equity release schemes are roll-up and interest only lifetime mortgages. In order to get an interest only lifetime mortgage, it is a good idea to speak with an independent equity release adviser as previously mentioned. (more...)

A UK lifetime mortgage is a kind of equity release aiming at unlocking finances from homeowners aged above 55. This form of supplementing a pension plan is expensive in most cases, and it is only wise to use it as a last resort. Additionally, it is always wise to use a lifetime mortgage calculator to get analysis of the different plans. There are two main forms of lifetime mortgage and these are the drawdown lifetime mortgage and the standard roll-up lifetime mortgage plan.

The standard lifetime mortgage allows you to get tax-free lump sum cash, which you can use to pay off any accumulated debts or for funding a grandchild’s schools fees. You can also use it to fund a holiday, use it on a home improvement project, or even buy a new car & debt consolidation.

Advantages of using lifetime mortgages (more...)

Making a decision to join the equity release schemes route to improve cash flow, is just the beginning of many more retirement decisions to be made. The question then arises, which equity release scheme to choose? Two major equity release schemes exist, however there are still decisions to be made before settling for the one that bests suits an individual.

Lifetime mortgage schemes involve taking a loan against the value of one’s property, without worrying about repaying the loan immediately. The repayment of the loan is effected upon death, sale of the property or a permanent move out of the property by the homeowner. Even after settling for this type of scheme, one still has to decide which equity release out of the whole of the equity release market to choose.

A choice still has to be made whether to choose the roll-up interest scheme whereby interest is rolled up and added to the principal debt, thereby increasing it. Alternatively there is the ordinary interest only lifetime mortgage scheme whereby one pays the interest monthly to keep the principal debt fixed, or lastly, the fixed repayment lifetime mortgage whereby you do not pay the interest, but parties agree beforehand to a fixed amount to be repaid which is quite high. It is therefore important to determine which equity release to choose by looking at how to repay the interest accumulated through the loan. (more...)

Are you in retirement and are looking for an additional source of income? Is your monthly income from your pension plan just enough to meet your daily living expenses? Do you want some extra cash to go on that dream vacation or to purchase your dream car? If you own a property of a certain value, you can use that property to obtain a lump-sum amount or a fixed monthly amount from an equity release provider.

What exactly is equity release? Equity release is schemes that allow retired home owners to obtain a lump-sum amount or a fixed monthly amount by releasing equity from their property. Lifetime mortgages are one of the most common equity release schemes . A lifetime mortgage is a mortgage or a loan that is offered to retired home owners using their property as collateral. The great thing about the lifetime mortgage is that the home owner is not required to make any payments for as long as he lives. Upon the death of the home owner, the property is sold and the equity release provider is repaid the capital loan amount as well as the accumulated interest.

An interest only lifetime mortgage is a special type of lifetime mortgage that gives home owners the choice to make monthly interest payments. The advantage of an interest only lifetime mortgage is that the amount that will eventually have to be repaid will not be so much. In most cases it will be equaled to the capital loan sum since that the interests will be paid on a monthly basis and will therefore not be allowed to build up and thus increase the amount that needs to be repaid. (more...)