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.
Halifax retirement plans enable the borrower to pay whatever interest is charged from variable resources. The source of income can be a private or occupational pension, or state grants such as government pension, means tested benefits such as pension credit. They also accept other forms of income such as DLA (disability living allowance), Industrial injuries benefit and carer’s allowance. Finally, rental income is acceptable at the discretion of the underwriters providing a shorthold tenancy agreement is in place & the amount used for equity release calculation purposes is usually at 60%.
Halifax is among the best equity release providers and that is the reason why they are trusted and becoming used more than many other equity release service providers.
Contact us on 0800 321 3156 about the Halifax Retirement Home Plan today & see whether it can help with your retirement plans.
