The Halifax Retirement Home Plan - A Retirement Solution

By Author: alvinwillium
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If you have retired or about to retire you are probably thinking about many things, you have reached this point and still have a shortfall in income or capital requirements. After all, planning for retirement does not always go completely to plan.

If you are looking for some way of raising finance to help fund the capital expenditure or income then one suitable plan that might fit the bill is the Halifax Retirement Home Plan, which is an interest only mortgage, but qualifies as a lifetime mortgage under the Financial Services Authority (FSA) rules, the FSA is the watchdog for financial services firms.

The Halifax, one of Britain's best known financial institutions introduced the Halifax Retirement Home Plan in 1984 and it has since become a very popular product amongst UK retirees. The plan lends money as an interest only mortgage to retired borrowers, who pay interest on the outstanding balance of the loan. to offer lifetime mortgage advice.

Therefore, the responsibility for providing advice on the Halifax Retirement Home Plan was left completely with lifetime mortgage qualified advisers including independent ...
... specialists Equity Release Supermarket.

What is the Halifax Retirement Home Plan?

Even though the Halifax Home Retirement Plan is classified as an equity release product, lifetime mortgage to be exact, it is an interest only mortgage and the funds that are released from the property can be used for any purpose. Some of which could include:

Pay off an existing mortgage that is at a higher interest rate, remortgage.

Spend on a holiday of a lifetime

Improvements to the home or adaption of the home to cater for disability

Use an an investment to produce an monthly or annual income

Help children or grandchildren get onto the property ladder

The choices are many and each individual will have their own reasons for wanting capital in retirement.

How do I qualify for the Halifax Home Retirement Plan?

There are strict qualification rules for the Halifax Home Retirement Plan and these must be followed fully to be accepted. Firstly the rules only allow non-earned income to count in the affordability qualification calculation. So only income from pensions (State, Occupational or Personal) and State benefits count as income. If you were still working and drawing a salary from employment this income would not count.

Only those over age 65 qualify for the plan, although if you are fully retired and under age 65 then the Halifax will consider your application as long as the income is from pensions and State benefits.

The minimum release on the Halifax Home Retirement Home Plan is only £15,000. The maximum release is 75% of the valuation of the property to be mortgaged.

The Halifax Retirement Home Plan is available for existing Halifax customers or new customers; existing customers can simply transfer the rate of the current mortgage over to the plan. New customers after affordability and credit checking can select one of the many Halifax products available and there are tracker and fixed interest rates products available.

Overall the Halifax Retirement Home Plan is a flexible product that suits those that are retired and have the income from pensions and State benefits to support mortgage payments.

Get the retirement solution you deserve with the Halifax Retirement Home Plan.