It has become very important for everyone to review their finances otherwise it would be very difficult for us to cope up with the modern scenario. As we all know that inflation is rising day by day, therefore there is an urgent need for planning our finances so that we do not have to face any problems in the future because life after retirement is tougher. After retirement generally people face financial crises as the pension is not enough to meet their expenses. This is where equity release comes to rescue. Now we shall discuss about Equity Release Companies.
Equity release has recently gained so much popularity. About eight years ago there were only few Equity Release Companies which provided equity release schemes. But now the times have changed and there are more than twenty companies in this business. There is a tough competition among these companies. Due to this competition the inflexibility and high interest rates charged by the earlier companies have changed. The schemes provided by the present Equity Release Companies are more flexible and competitive. This has resulted in a healthy environment. Competition among the equity release companies have resulted development of new strategies of release equity and lower present rates of interests.
Due to increase in inflation it has become really difficult to fulfill even the basic needs. It becomes more difficult after retirement because the income reduces and the pension is not sufficient to fulfill the retired person’s needs. Therefore, Equity Release Plans are a good option for such people.
Release Equity allows the person to receive money in lieu of his or her house or property and also maintain the ownership of the house till death. They do not have to leave the house. There is also no need to repay the loan as it will be recovered by the sale proceeds of the property after the death of the borrower. They can receive the money either in lump sum or in regular installments. There are generally two types of Equity Release Plans: lifetime mortgage and home reversion plan. In lifetime mortgage people over 55 years of age who have their own home can receive cash against the mortgage of their home and are not required to leave the property or make any repayments. The loan will be recovered from the sale proceeds of the house after the death of the borrower. And in home reversion plan people generally sell their property to receive money either in lump sum or in installments and also maintain the ownership. This option is available for people of 65 years of age and above. But it is important to choose that one plan among various Equity Release Plans that suits you the best.
There are many Equity Release Companies and different Equity Release Plans. It is important for you to choose the best with proper advice from the professionals so that you are benefited the most and solve your financial problems. You can do your own research on the Internet to know about various plans in details.
