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judah
Apprentice
Joined: 26 Jul 2006
Posts: 2
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 Posted: 03/02/08 - 11:01 Post subject: |
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| I'm looking forward to retire and finally live how I always wanted. Then I found out that I would need more money for my plans. That's why I'm considering Equity Release. I'm a home owner so it would be possible for me. What are advantages and disadvantages of this option? |
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dieter
Apprentice
Joined: 19 Oct 2007
Posts: 1
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| Posted: 03/31/08 - 23:19 Post subject: |
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| Equity release is borrowing against your property value. That means that you could take the money without moving from your house or selling it. It's a mortgage extension and you can take it with the same or even a different lender which is then considered as remortgage. When you take your tied up money you would have to pay for it like additional mortgage cost. So make sure that you are considering this option for right reasons. You can use this service even if you already paid off your mortgage. Since Equity Release schemes produce costs, in time your property would have higher value and it should be easier to repay. There are two ways to consider. One is Lifetime mortgage and it offers even 50 percent of the property value. When you leave the house for any reason it should be sold to repay the mortgage. Another is Home reversion plan but it's less convenient because it means that you sell a part of the house or whole and take the money as a lump sum or like a regular income. |
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