No Financial Worry With Equity Release Mortgage

by : Derrick Adolfo

Equity release allows you to release the tied-up equity in your house, that is, the balance on your property, that is the actual monetary worth of your assets minus liabilities. Apart from the requirement that you need to be a legal homeowner in the UK, age is the primary eligibility criterion for equity release mortgage scheme.

You can avail to this mortgage to supplement a part of your retirement income.
Research shows that more people intend to avail to this scheme as much as to unlock the potential of their homes. In all instances, age is the primary factor in determining the percentage of the equity value of your home that can be released. A senior houseowner can release equity of higher percentage since they are likely to predecease those younger to them, which means lesser period for the provider in which to pay the equity release mortgage. Also as of now, applications are not usually granted to anyone under the age of sixty.

Availing to equity release involves complex calculations, where you have to balance your monthly mortgage payments with the net equity worth of what your heirs would inherit. In this light, it is important for you to consult financial experts who can advise you on the same. This service is available with the special equity release firms whom you can conveniently contact by visiting their websites on the Internet.

Another important thing to consider is negative equity guarantee which ensures that your debts should also decrease in the event of decrease of your property value. Secondly, it ensures that any outstanding debt, after the sale of your property, is not passed on to your nominated successor/s. thus eases your life after retirement since you pay in the form of property and do not have to worry about repayment in the remainder of your lifetime.