Uploaded on

As a market continues to grow, people expect to see other lenders follow the lead of pure retirement. That will not only improve customer choice but also encourage healthy level of competition.

As a market continues to grow, people expect to see other lenders follow the lead of pure retirement. That will not only improve customer choice but also encourage healthy level of competition.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
323
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Equity Release is Financial Tool for Older Homeowner Submitted by Pamela thomas 1
  • 2. Equity release is a process though which people can take lump sum amount after retirement. Taking out an equity release is a very important decision. So it is necessary for you to take much information as possible. Equity release compared provides you information about what is available in whole of UK equity release market and also gives you equity calculator to calculate your equity. 2
  • 3. How does it work? Equity release is a financial vehicle by which people who are exact 55 and above can use the equity schemes. There are numerous schemes are available in the market. So you will have to take an advice before which one you would like to go with. 3
  • 4. Equity Release Schemes There are two types of equity release schemes and these both are different. 4
  • 5. Lifetime Mortgage With this schemes you can release equity from your property, either lump sum or drawdown arrangement. You won’t have to repay monthly to your lender. Your interest is rolled up and is payable on sale of your home when you die or move. Moreover most deals come with “no negative equity” guarantee. 5
  • 6. Home Reversion Plan In home reversion plan, you can sell all or part of your property and in return you receive tax free regular income. You can continue to live in your home as long as you wish. Percentage you decide to keep in your property stay the same. 6
  • 7. Take Advice Advice is necessary for those considering an equity release plan they are more complex than standard mortgage. It is important that you could understand what you are signing for; it is always advisable to do some research before contact with any lenders. It is essential to choose financial adviser that have experience in dealing with equity release product. Since people need an up to date information and knowledge of full range of product. 7
  • 8. Pros of Equity Release •Security point of view: stay with your property for life time or until you move into long term care. •Access your amount: get your hand on equity and take a lump sum or regular income •No monthly repayment: Interest on a lifetime mortgage is paid on your death. •Always positive approach: you and your estate will never owe more than the value of your home 8
  • 9. Cons of Equity Release •Inheritance: it may decrease the amount of money your family will inherit after your death. • Expensive: it is more expensive then selling the property to equity. •Area benefit: equity release can affect your eligibility for certain state and have tax applied. •It may impact any means-tested benefits that borrower may be entitled to. 9
  • 10. Conclusion As a market continues to grow, people expect to see other lenders follow the lead of pure retirement. That will not only improve customer choice but also encourage healthy level of competition. 10