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.
From paying £2,000 for a bungalow in the North West in the mid 1960's, experience has shown that this can now have escalated in value to over £200,000. Assuming any mortgage has now been paid off prior to retirement; it clearly illustrates the amounts equity that has built up within those four walls. So after all the hard times & seeing the children successfully move on, now is the time to reap those deserved hard earned benefits. This is where the Halifax Retirement Home Plan enters the fray & helps pensioners release this built up equity in the home.
People can use the proceeds of the Halifax interest only lifetime mortgage on anything they want; be it home improvements, paying off debts or generally to support a lifestyle after retirement.
How much equity release is possible?
The Halifax Retirement Home Plan offers a minimum equity release of £15,000. If you are not really sure about the amount you can get, you can use an affordability calculator. These lifetime mortgage calculators will assess the exact amount that can be borrowed by collating information such as income, number of applicants, credit status and outstanding credit commitments.
A person can also take professional help from expert financial advisors who will be able to guide them through the whole process. The maximum equity release cannot however exceed more than seventy-five percent of the total value of the property. This is subject to income criteria & can only be based upon retirement income & additional state benefits that may be in payment.
It is always advisable to seek the guidance of an independent financial advisor if you have any doubts about equity release schemes.
