The Different Types Of Equity Release Schemes

By Author: Dave Woods
Total Articles: 324
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Equity Release schemes are great way to live a happy retired life with monthly income in your retired life. This scheme is ideal for people above 60 and own some house or property. This scheme lend you loan against the value of your house. There are different Equity Release schemes introduced in market according to need of people. The known Home Equity Release schemes are as follow:



Life time Mortgage:



It is basic equity release scheme in which you can get loan against the value of your house. You can get this loan in lump sum amount or in form of monthly installments. The basic idea of this scheme is to let people live in their house until they die or leave the property. The loan is calculated with compound interest after selling the house.



Home Reversion Scheme:



This is also one the most popular scheme in which you can sell your house or part of it to capital provider. You can get handsome cash in this case. Also it is up to ...
... you that you want to take money in form of monthly installments or lump sum amount. Through this scheme you are capable to retain your house until you die all along with monthly income.



Interest Only Scheme:



In this scheme you can gain a lump sum amount of cash against value of your house. Then you can pay interest each month while you still have good amount of cash in hand. You can retain your house on condition that you want. The only dissimilarity is the actual; amount of loan will be repaid after selling house excluding interest.



Shared Appreciation mortgage:



This scheme is alike to that of interest only scheme as you received a total amount of cash against value of your house but you do not have to pay monthly interest. The total amount of loan with agreed upon percentage of interest is received by the company after the selling of house and death of owner.



Home income plan schemes:



This scheme is combination if mortgage and annuity. In this scheme you are provided with amount of cash against value of house but this cash will be used for buying an annuity. Through this annuity you will be able to receive monthly installments. The amount of interest will be deducted through amount of monthly installments paid by annuity. Through this you will be able to pay interest along with receiving monthly income. The actual amount is received by company only when house is sold after death of client. The only drawback is you will not receive a lump sum amount of cash through this scheme.



About the Author: Dave Woods writes about equity Release schemes. To know more, please visit http://www.mwgb.co.uk/.