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%
These can always be at the discretion of the Halifax underwriter, however with guidance from the Halifax affordability calculator these are the assumptions usually made & form the basis of the maximum amount that can be borrowed.
Thus, it is always better to choose a financial advisor who can give you all the details about this scheme. Being appropriately licensed in the field of lifetime mortgages, they can income assess your potential application & advise on what can be borrowed quite accurately; but as always this figure is subject to the individuals credit record.
