Retirement is undoubtedly a major turning point in our lives. Besides reminding you about getting older, it does put certain financial restrictions on you.
Reduced monthly income is one of the major problems faced by many retired individuals. In such a case, it can become difficult to manage monthly expenses & property maintenance issues.

So how can equity release schemes help?
Equity release schemes are specially designed for senior citizens particularly those aged 55 & over. By opting for equity release, retired individuals can get access to a lump sum or regular monthly income or even a combination of both from their property.
Moreover, an equity release scheme also allows you to continue residing in your home with no further monthly payments required. This is an important difference from any residential mortgage, as you cannot default on the monthly payments & thus risk having your house repossessed. It therefore alleviates any concerns of affecting your credit history & finding the cash to pay the mortgage which was probably the biggest financial & possibly stressful commitment during your working life!

The most popular type of equity release schemes are lifetime mortgages. Here ownership of your property remains solely in your name at the land registry, with no transfer of ownership. This provides you with the peace of mind of knowing that any alterations & improvements can be actioned with minimal fuss & confidence. (more...)

With the recent furore from the FSA (Financial Services Authority) regarding the sale & uptake of interest only mortgages, we take a look at how these controversial interest only mortgages work.

Firstly, interest only mortgages operate by requiring a monthly payment to be made to the mortgage lender. This payment made pays off the interest that the lender is charging on a monthly basis. This differs from a conventional repayment mortgage which pays off both capital & interest & which results in the mortgage balance reducing over the term. Therefore, this capital & repayment mortgage will guarantee the eventual repayment of the mortgage at a pre determined year in the future.

An interest only mortgage interest only mortgage has no capital repayment element & as such the balance on the mortgage will remain the same for the duration of the term. Therefore, to ensure eventual repayment a separate savings plan can be set up which with regular payments & investment growth. This provides a mortgage which establishes a long term repayment strategy. (more...)

Taking an interest only mortgage out may offer a cheaper way to purchase a property or even a remortgage of your current abode than with the conventional capital & repayment mortgage. The reason being is that borrowers are only paying off the interest charged & not the capital. An example of interest only mortgage calculations would be as follows - someone borrowing £150,000 at 5% interest rate over 25 years would cost them £624pm on an interest only basis, & £878pm on a capital & repayment mortgage.

However, come the eventual repayment of the mortgage at the end of the term then the interest only loan will have only paid off the interest charged which would still leave the original £150,000 outstanding. Additionally, this debt will still need to be repaid; hence a means of savings should have commenced many years ago to counter this. In comparison to this, as long as payments have been met then a repayment mortgage would have guaranteed to clear the debt.

Interest only mortgages have been around many years & have been very common in the heyday of low cost endowment policies policies predominantly during the 1980’s which were sold as repayment vehicles alongside them. (more...)

Paying off your mortgage before retirement may not be the best idea.
People strive through their working lives at attain their main financial goal – to have their mortgage repaid before they reach retirement age.

During one’s life, a mortgage will be the greatest financial outgoing each month & consequently is seen as a millstone around one’s neck. Hence, this is the reason to strive & eliminate this debt as soon as possible; the usual goal preferably before retirement.

According to the statistics, there are still approximately 12% of people carrying their mortgages through & into their retirement years with a substantial average balance of almost £60,000! (more...)

Extending your mortgage into retirement or even remortgaging for the over 55’s does not always need to involve the expensively equity release schemes. Other lifetime mortgages are available, although finding these schemes can be difficult.

While most lenders refuse to provide borrowers with a mortgage in retirement, with thorough research & a suitable independent financial intermediary, you can discover lifetime mortgage deals than run until age 75. However, there are a couple of lenders that will go beyond this age limit & this is where we begin...

The Halifax goes one step further than most mainstream lenders by offering their Halifax Retirement Home Plan which is an interest only mortgage for the over 65’s. This is a serious lifetime mortgage scheme which concentrates itself being solely on an interest only basis. It does not accept the basis of capital & repayment, although you can pay an additional 10% per annum without penalties during any early repayment charging period. The retirement home plan is NO equity release scheme in the conventional roll up lifetime mortgage sense, but has some similarities. (more...)

Come retirement age, many pensioners soon hit upon the realisation that cash is required more than ever. Being the longest holiday of one’s life & having more leisure time than ever, money can soon become in short supply. So what are the alternatives?

Other than the non financial options such as downsizing, using one’s savings or investments, claiming any means tested benefits means tested benefits due, asking relatives for financial assistance etc there are still two further means by which people can remain in their current home.

These options are either equity release schemes or interest only mortgages in retirement. An equity release scheme works by releasing a tax free lump sum from the property, dependent upon the age of the youngest property owner & the value of the property. The interest charged by the equity release providers is added to the balance of the original amount borrowed. Therefore the balance grows over time, almost doubling every 10-11 years. (more...)

The misconceptions that all lifetime mortgages will have a detrimental effect on the heirs to the estate are misguided. Due to adverse publicity sections of society have been inappropriately been led to believe that lifetime mortgage schemes are bad news. Given the right situation & scenario, the best lifetime mortgage plans can offer an olive branch that may change how retirement life can be enjoyed. Less financial pressure & the ability to chase dreams of their golden years are one of many justifiable reasons for the most common question ‘can I have a mortgage in retirement?’

As a general rule of thumb, mortgages are normally offered to applicants based on affordability calculations through their earned income. Consequently, the concept of mortgages has traditionally been for those individuals that are young enough to be in employment & expected to be so for the whole mortgage term. For example, a lender would expect someone taking out a 25 year mortgage to be under the age of 40 years, thus having the mortgage repaid by they have retired.

This does of course, makes perfect sense. However, lenders should now start taking note of age discrimination legislation as the case for retirement mortgages become stronger. Why should someone over the age of 65 not be able to take out a mortgage? (more...)

Do not be intimidated or confused by the name ‘Halifax Retirement Home Plan’. This is just an interest only equity release lifetime mortgage scheme, that lets people make use of the equity that is tied up in their home. Halifax equity release is great for people who do wish to release tax free cash from their home & have good disposable income to cover the monthly payments.

The retirement home plan maybe a better option for the kid’s aswell as the plan is a good alternative to the conventional roll-up equity release schemes. If inheritance is an issue & concern for the beneficiaries, with the stability of the Halifax mortgage balance over the life of the loan it will provide inheritance protection for them. For some of the older generation, whose attitude to risk is extremely low & averse to borrowing in the traditional sense, then the Halifax Retirement Home Plan has proved to be an excellent measure.

Pensioner mortgages require a stable source of income from retirees in the later years of their life. The one advantage pensioners have in the realms of affordability is stability of income. Additionally more often than not is the amount of equity residing in their properties. Given the majority of elderly people have lived in their properties for many years; they would have paid what is in today's terms a meagre value for their main residence. (more...)

After retirement, there are many adjustments individuals need to make to their lifestyle. Even though you may get a pension, the amount may not be sufficient enough to meet your monthly expenses. As the bills increase however, the money you have seems to decrease. This is especially true given that currently in May 2011 the level of inflation is running higher than average pay rises.

To overcome financial problems in your golden years, opting for roll-up equity release schemes or interest only lifetime mortgages such as the Halifax equity release scheme will be a wise decision. This particular equity release scheme offers a number of benefits to retired individuals. The size of the benefits can be assessed by use of an interest only mortgage calculator.

What you need to know about Halifax equity release schemes
Halifax equity release is basically an interest-based loan. Your property is the guaranteed asset to the equity release loan provider. This form of security will need to be assessed prior to completion. The condition & property type are an important factor.

With this scheme, you only need to pay the monthly interest. This is paid by direct debit on a date of your choice from your selected bank account. Once the property is eventually sold there is no need to make any further payments as the proceeds are primarily used to pay off the pensioner mortgage with the balance passing to the beneficiaries of choice. (more...)

Many people don’t plan for the future and when it comes to their retirement. They subsequently find they are short of money to live life to the standard they have become accustomed to. An equity release from Halifax might be the answer to their problems. The aptly named Halifax Retirement Home Plan is becoming quite popular due to the following benefits it offers.

What you should know about the Halifax Retirement Home Plan
The Halifax Retirement Home Plan is simply an interest only mortgage lifetime mortgage for retired individuals. This is a great equity release plan for those people who have a lot of equity tied up in their property. The money received can then be used for a number of reasons, ranging from anything like paying off credit card debts to supporting a certain lifestyle or even financially gifting money to the children.

The minimum age required for an individual to opt for this Halifax equity release scheme is 65 years. There is however provisions that can let a person apply for this scheme, even if they are below 65 years of age. Retirement income must be in place, as evidence of such will be required as proof upon application.

Acceptable proofs of income & the amount that Halifax allocate would be: -

• State pension - 100%
• Company & private pensions - 100%
• Pension credit - 100%
• Rental income - 60%
• Disability Living Allowance (DLA) - 60%
• Industrial injuries - 100%
• Attendance allowance - 60%
• Investment income - 0%

In essence, the Halifax Retirement Home Plan is a conventional mortgage but with a twist.

Whereas, traditional mortgages finish once normal retirement age commences, the Halifax Retirement home Plan comes to life. This type of interest only lifetime mortgage is rare as only one other lender will offer lifetime mortgage deals on the following basis: -

1. NO repayment vehicle required e.g. ISA, endowment – therefore, you are safe in the knowledge that you can rely on the eventual sale of the property to repay the mortgage. Halifax do not insist on any savings plan or capital & repayment basis for this pensioner mortgage. The Halifax interest only mortgage is repaid on death, moving into long term care or even earlier sale of the property if downsizing. If either of the two former causes, then the Halifax Retirement Home Plan rules state the beneficiaries have 18 months in which to sell the property.

2. NO fixed term or end date – the Halifax Retirement Home Plan hasn't any rules over how long it can run. This makes it differ to a traditional mortgage as usually from onset they have a term of 25 years or below. Upon production of this Halifax retirement mortgage quote, mortality tables are used to estimate the term to repayment. If the current age of the applicant is already near to this then a term of 15 years is used. This is for guideline purposes only as the mortgage could last longer or shorter than this period.

3. Monthly payments required – as this is an interest only lifetime mortgage then monthly payments MUST be made in order to service the interest charged. The amount will depend on the interest rate charged & the cash lump sum borrowed. The effect of the monthly payments is that the mortgage balance will always remain level. This is in stark contrast to that of a roll-up equity release whereby the balance approximately doubles every 10 years. With the Halifax Retirement Home Plan balance remaining the same, beneficiaries are safe in the knowledge that their inheritance is thus protected & will know exactly how much is to be repaid back to Halifax mortgages.

4. Affordability based on income – while roll-up equity release calculators base the maximum release on property value & the age of the youngest applicant, the Halifax Retirement Home Plan uses an interest only mortgage calculation as its tool. Although Halifax doesn’t use a defined income multiple, their borrowing assessment is made on a series of questions using data such as type of income, existing debts, credit score & loan to value.

As with any financial commitment, major consideration must always be given to the longevity of the loan, particularly in the case of interest only mortgages for pensioners such as the Halifax Retirement Home Plan. Due to the nature of these plans, the interest only mortgage repayments are set to potentially run beyond the normal 25 year term of a conventional mortgage. Especially given the ages involved here, more thought should be placed upon mortgage protection as health issues are more likely to be prevalent.

However, as with most, there is no insistence placed by the Halifax Retirement Home Plan or from the remaining lifetime mortgage providers that any life cover be taken out. Nevertheless, common sense should prevail & in conjunction with your experienced financial adviser an overall strategy should be put in place. The Halifax Retirement Home Plan is no exception to this rule.

Should a person die on a jointly held mortgage, then the surviving partner still has the interest only mortgage to pay. If they are reliant on their partner’s pensions, then this could cause much heartache emotionally & financially; even more so given their long term partner is now deceased & not around.
The Halifax Retirement Home Plan still functions like a normal mortgage & as such the monthly payments must be maintained otherwise the standard procedures for repossession could be enforced by the lifetime mortgage lender. Herein lies the danger. (more...)

Mainly it would provide peace of mind, knowing that should the worst happen the mortgage can be repaid in full & thereafter NO monthly mortgage payments are required. The interest only mortgage lenders will let the surviving partner remain in the home for the rest of their life; this is part of the terms & conditions. Therefore, your tenancy cannot be curtailed, nor can you have your house repossessed as long as the monthly mortgage payments are kept up.

The life cover premiums for the over 65’s pro rata will certainly be higher than those of younger applicants. However, given the loan sizes are usually much smaller then the overall cost is marginalised. The payments are usually fixed from inception which is similar to having a fixed rate on the mortgage, in that payments are guaranteed for the duration & you can budget accordingly.

What types of life assurance plans are available?
The term of the plan is usually the key here as there are two options in the protection of an interest only lifetime mortgage. As the balance will remain level throughout, some form protection whereby the life insurance also remains level throughout is therefore recommended.

The best advice in this situation would therefore to opt for a whole of life assurance policy. This will provide a level amount of life assurance for the rest of your life. Therefore, it has to eventually pay out, once the first person has died. (more...)

From the heady mortgage years of the 1990’s & 2000’s many retired people are now finding themselves in a quandary...’how do I repay my interest only mortgage by age 75?’

Given the dilemmas & problems experienced by retirees in today’s changing world, this is probably one of the most financially challenging issues they face.
This is a property that could have been their initial marital home or even where their children were brought up & therefore hold many memorable attachments to show for their working lives. So now having to sell the property in retirement now to meet a decisional mistake from many years ago, could weigh heavily on one’s shoulders.

Unless these funds can be raised, pensioners will face the ultimate disruption to their lifestyle which could be the forced sale of their property. (more...)

With the recent FSA review of interest only mortgages in 2010, there are many people that have been unduly affected by the changes, some more serious than others – the pensioner mortgage. We have experienced an unprecedented period in mortgage lending; the resulting outcomes of which are a mixed bag. Over the longer term, the first time buyers who can get on the mortgage ladder will be protected more, however at the other end of the spectrum there are many retired persons who having taken out mortgages believing they were for life, are now facing harsh reality.

Lenders closing loopholes in interest only mortgage refinance, have forced out of their slumber a proportion of mortgagors who either had not planned correctly or whose plans have been left awry by changes in personal matters they experienced. These mortgage lending criteria changes can now lead to many people happily mortgaging through retirement having to possibly sell their home to redeem the mortgage or look at alternative lending proposals.
Many high street lenders insist now on mortgages being repaid by age 75, but why? Retirement income is usually more secure than employment income as it’s fixed & indexed usually for life. Pensioners cannot be made unemployed & if necessary can always seek additional part time work to secure additional income. So why does a pensioner mortgage seem to be persecuted by a mortgage lender when if affordability can be shown. Surely this is a more stable customer than many younger counterparts. We seek to address this later with further retirement information provided.

The problem for many is the question ‘can I still get a mortgage in retirement?’. The answer is yes, but subject to either income in retirement, property value & age. (more...)

The working of a traditional mortgage involved a borrower paying fully amortised monthly payments to the mortgage lender. This means that a borrower pays an equal amount every month. This is an amount determined on the basis of a calculation done. This calculation derives the amount to be paid every month by the borrower to pay-off the loan in full.

There is usually a specific term within which the loan has to be paid off. However, there are now interest only lifetime mortgage that can suit, depending upon one's financial demands.

Interest only mortgage loans differ from the traditional loan system because they do not require monthly amortised payment on behalf of the borrower. Therefore, only the interest charged is paid, no capital, thus resulting in the balance remaining the same. (more...)

Equity release has certainly become popular among senior citizens in UK. Equity release schemes are now a lot easier to understand and more accessible, which has given older people a reason to cheer. Taking out a mortgage has always been complex for retirees, the long process and complicated regulations made it almost impossible for older people to apply for a mortgage without taking proper professional help. Older retirement plans did not always work, so equity release is becoming more preferred by older people who own a property. Mortgage lenders seem to be reluctant to grant mortgages to retirees beyond the age of 75.

Halifax equity release offers an easy and practical equity release service to its customers. It is often near-impossible for a retiree to get a loan sanctioned because of their age and unlikeliness to pay loans back. Halifax has broken this misconception by providing attractive equity release schemes to its customers.

This is a niche market for certain professionals to exhibit their skills & therefore the Halifax branch network you will find are unable to offer advice. This fortunately is left to certain qualified intermediaries who have the appropriate Halifax equity release examinations & licence to provide advice & guidance on this product. Therefore, safety & quality of advice should prevail.
The retirement home plan for seniors which is provided by Halifax is the first chapter of the story.

About the Halifax retirement home plan
The Halifax retirement home plan is an interest only lifetime mortgage plan in which the outstanding balance remains unchanged until the end of the deal. The borrower has to pay a partial sum of interest to the lender every month. Previously, seniors with equity release schemes did not make any interest payments traditionally and so the loan amount kept increasing month after month. In short, by the time a borrower dies, he or she has a big debt over their head & even more concerning would be the inheritance left to the beneficiaries. (more...)

Owning a home is a dream come true; paying a capital & repayment mortgage in retirement however can be a nightmare for most pensioners. Certain organisations offer mortgage plans where you only pay interest, which makes it easier for you as a home owner to make the monthly payments. Pensioner mortgages are therefore becoming increasingly popular and the interest only lifetime mortgage route seems to be the key.

Features of the interest only mortgage Money lenders assign a period of years for an interest only mortgage plan. You as a borrower are required to make monthly payments on the interest over the estimated term on your loan. The term is estimated as the plan will continue for the remainder of one's life & as yet no one can accurately judge what life expectancy is for anyone!

This basically means that you do not have to pay any money off the principle amount; nevertheless you are repaying the interest generated by the charge levied on the capital each month. This ensures the capital element will always remain constant, providing payments are maintained. (more...)

Well if one wishes to retain their home, urgency & review of their interest only mortgage would be the key. The interest only mortgage customers have two main options which are an equity release to clear the mortgage; however there is the disadvantage of the interest roll-up scenario & consequential ever increasing mortgage balance. The better alternative if one wishes to maintain a UK interest only mortgage is to look at lifetime mortgages with an interest only option.

Who can provide an interest only lifetime mortgage?
These are provided by the likes of Halifax with their Halifax Retirement Home Plan which is only available via selective authorised brokers such as Equity Release Supermarket. The branch network has had their lifetime mortgage licences revoked some time ago hence they are unable to offer advice or the product themselves. Therefore FSA authorised brokers such as Equity Release Supermarket who have the CeRER & CeMap qualifications can provide best advice for your requirements.

Affordability is based on retirement income alone, hence there is no acceptance of any employment, self employment or investment income. The Halifax Retirement Home Plan has an interest only mortgage calculator provided to authorised brokers such as Equity Release Supermarket who can then calculate how much can be borrowed.

The second option is the Stonehaven Interest Select product which is a hybrid equity release scheme with the option to make a 'contribution' towards the interest. This contribution can either be a minimum of £25pm or the full interest that is charged on a monthly basis. Therefore, you have the option to either completely repay the interest & maintain the balance at the same level; or make a payment that meets one's affordability levels with an element of roll-up, albeit lower compares to complete roll-up equity release schemes. (more...)

An endowment mortgage is a special type of interest only mortgage that is accompanied by an endowment policy which uses stock market investments as a means of repaying a mortgage. In recent years many consumers have found that their endowment policies are simply unable to repay the mortgage. These endowment shortfalls have lead to mortgages into retirement.

It is possible to get mortgages which are specifically for retired individuals and these are often suitable where an endowment policy has failed to repay a mortgage. One such scheme is the Halifax retirement mortgage which is essentially the same as an interest only mortgage in that monthly contributions are made to cover any interest.

This is beneficial in that the balance owed does not grow unlike with an equity release scheme in which interest is essentially rolled into the outstanding amount owed and continues to grow. (more...)

As you approach retirement age you may find you have some savings aside. You may wonder whether or not you should pay off your mortgage or instead carry your mortgage into retirement and invest the money in more high-yielding stock options.

There are pros and cons of both options and it is important that you analyse fully the possible outcomes before making any decisions. It is indeed true that investing can bring much greater financial gains and mortgage interest rates are actually quite low. Therefore investments seem like a more beneficial option in the long-term.

However, it is impossible to put a price on peace of mind and this is one thing you will have if you own your home outright. Very little beats having a roof over your head come what may. (more...)

Safe Home Income Plans (SHIP) are one way of protecting equity release customers. The SHIP code of conduct means that any organisations that work with SHIP in offering equity release schemes must abide by a series of rules which ultimately protect equity release customers. Therefore for any individual or couples who are considering committing to an equity release scheme, it is important they deal with scheme providers who abide by these rules.

Equity release allows people to access some of the equity within their home without having to sell their property. This is ideal for retired people who wish to have access to some of their equity and yet retain their own property.

A key part of the SHIP rules state that home owners must have a lifetime residence guarantee for their property. This gives the customer the peace of mind that they will always have a roof over their heads. (more...)

Equity is the value of the home minus any outstanding charges or mortgages against the property. The equity you hold in your home is often considered to be tied up in that you are unable to access it without selling your property.

Using an equity release scheme, an individual can unlock some of this equity in order to gain a lump sum of money or ongoing financial income from their property.

If you are reaching retirement age or even in retirement age and you are thinking about ways to increase your financial income, or perhaps would benefit from a large lump sum of money then you may ask yourself how much can I borrow? The great thing about an equity release calculator tool is that you can find out how much equity you would be able to release from your home without actually signing any contracts or taking on any commitment. (more...)

As you enter into your retirement years often it can seem frustrating that you are unable to tap into the equity within your own home. In many ways you can end up being "asset rich, cash poor". The retirement years should be an enjoyable time of life and not one in which scrimping and saving is a daily necessity. If you own your own home then there is a way to tap into the equity within your home and release some of it at a time when you either need to or would like to, in order to enrich your twilight years.

Equity release schemes offer this and there are literally hundreds of equity release companies across the UK. Therefore the options are plentiful. In order to find the best equity release scheme for your individual needs then it is recommended that you follow a number of key steps.

The first thing to do is shop around. You can either do this yourself or use one of the comparison websites available. If you are less internet-savvy then it is always a good idea to approach reputable financial institutions and enquire about what they offer. A number of reputable financial institutions offer equity release schemes. (more...)

For many people, an equity release mortgage is a good solution to cash flow issues later in life. This kind of financial scheme allows you to stake your valuable assets – such as your property – to secure a loan, and to retain use of these in your everyday life as well.

There are several varieties of equity release scheme; some involve simply taking out a loan, while in others, the third party actually buys your property from you and delivers payments in small chunks that are deposited monthly and which become your regular income.

If you are keen to take on this kind of scheme, you will want to ensure that you have plenty of advice and support in order to make sure that you avoid hidden costs and get the best possible deal. Solicitors who are members of ERSA will be able to help you here. (more...)

If you are worried about the state of your retirement fund and keen to bolster your cash-flow during your senior years, you may well be considering a home equity mortgage. This kind of financial plan comes with a variety of benefits that can help you to stay solvent for longer.

Basically, your typical home equity scheme allows you to secure a regular income loan to the value of your house. Either the bank or other lending third party will buy the property from you and pay you out in a series of instalments, or you take out a loan for the value of your home to be repaid at a later date.

There are one or two pitfalls involved in home equity release. For example, if you already have an existing mortgage, you will ordinarily only be able to take a loan out to the value of the difference between the amount owed and the worth of your property. (more...)

If you are considering releasing equity from your home, and you are finding that the labyrinth of financial jargon and dense, technical policy descriptions are difficult to navigate, it is important that you look for solid independent financial advice.

Unless you are experienced in this field, you might be a little anxious about choosing the right professional to help you to make your decision. However, with a little common sense, some research and a few sound, fundamental guidelines to help you, you should be able to source precisely the right advisor for your needs.

To begin with, you should search specifically for professionals who have passed their CeRER examinations. This qualification certifies that the holder has specialist knowledge of equity release schemes and will be able to give you the full benefit of his or her expertise in the field. (more...)

For a lot of people, equity release is the answer to insolvency during the later years of life. Once the land registry has been duly notified, an equity release scheme allows you to retain occupancy of your home, and to receive monthly loan payments which help you to cover the costs of day to day living.

In most cases, the equity release scheme extends beyond the lifetime of the borrowers and this makes the issue of repayment fairly unproblematic: the bank or other lending third party simply sells the property as a deceased estate and thus reclaims the debt.

However, there are some disadvantages to the conventional equity release scheme. To begin with, you will need to consider the fact that the inheritance you leave to your family will be significantly reduced. While it is possible to borrow only part of the value of your property, the accumulation of interest will invariably sap money from the remaining worth. (more...)

Home reversion is a variation of the conventional equity release scheme. After a regulation property survey conducted by a third part lender, it allows you either to sell all of your property outright, or to release equity from a portion of it, and at the same time to retain occupancy of your home.

This kind of policy is becoming increasingly popular in the current financial climate. However, while some methods of releasing equity from your home might potentially close during your lifetime, home reversion schemes ordinarily prevent the bank from selling your property and reclaiming the debt while you and your spouse are alive and living in the home.

In this sense, the home reversion policy has some advantage over its competitors. Unlike some schemes, it cannot saddle you with an un-payable debt or expose you to the risk of losing your home. (more...)

If you are of the baby boomer generation you may well be considering going into retirement in the next few years. If you are anxious that your pension policy may not cover all of your costs or afford you the financial security that you require, you might be keen to look into equity release and home reversion schemes as means by which to remain solvent.

Typically, people of your particular generation are likely to have a good deal of equity secured in houses and land. This is a result of the property boom that you will have experienced earlier in your life. The good news is that you can now begin to use these assets to your advantage.

Equity release schemes are widely varied however, basically, each one involves using your property, or a portion thereof, to secure either a lump sum payment from a third part lender, or a series of smaller monthly instalments. (more...)