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Which Is The Best Scheme To Invest On: Equity Release
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We know that we need to be prepared in order to successful and it includes secure financial future for when we are old and retired. That’s why it is important to collect as much information as you can about equity scheme. It is an essential way in which you take big amount against your property. With these schemes, you do not have to repay your loan till when you move away.
In United Kingdom, many companies are working on equity release and provides best scheme which suits you. Equityreleasecompared is one leading company among them which serves best plan for their customers. There are various schemes available in UK equity release market including home reversion plan, home income plan, and lifetime mortgage. These all have their own pros and cons and it may be not beneficial for each and every home owner. so After suitability people can choose policies.
Lifetime Mortgage is one of the most popular types of equity release scheme. It is a loan which is secured against home and provides you large amount. Interest in this scheme is at fixed rate that is not repaid monthly like other mortgages this is its plus point but it is a loan type including compound interest is repaid from sale of your house when you move away or death.
It has two parts first is drawdown lifetime mortgage and second is interest only lifetime mortgage
Drawdown Lifetime Mortgage
It is just similar to lifetime mortgage, although some flexibility is added. In fact these policies provide you with cash reserve from which you can draw little amount. Main advantage of this scheme is that interest is charged only on balance which you withdrawn.
Interest Only Lifetime Mortgage
As a name implies, mortgage requires borrower to cover interest amount arising from capital. People who have good surplus income and want monthly payment, it is a sensible option for those.
Home Reversion Plan
It is one of plan of equity release which allows user to sell part or all of the value of your property and provides lump sum money, in this type of arrangement, you obtain guaranteed lifetime flexibility that allow you to live in your own property without rent. At the end property will be sold according to your agreement.
Home Income Plan
Home income plan is blend of lifetime mortgage and home reversion plan. Its aim to support retirees, by providing amount as a monthly income .Home income plan permits you to borrow money by re mortgaging your property. Income get from this scheme will depend upon size of capital sum, your age, annuity rate and gender. Currently annuity rates are low and this option for those people whose age 75 or more.
Therefore these are best scheme you can choose as per your requirement. Make sure that you should choose right way and for this family advise should be there. Right scheme may be your life more comfortable in retirement days.
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