Equity Release Mortgage is Designed for Old Folks

by : Derrick Adolfo

Equity release mortgage schemes are gaining popularity over the years. The fact is that over the years, returns from investment in property have been much higher than the stock market investments. Prices have as much as doubled over the years within a matter of a decade.

Equity release is an in-thing now, as more and more people are realising the profitability of this scheme and opting for it. This scheme is particularly good for the retired people who can cash in on the rising value of their property. There are many schemes in the market these days which work out fine. In fact, most of the equity release mortgage schemes are for the old retired folks who are above 55-70 years of age.

You need to consult financial experts before you avail to this scheme. This may not be suitable for every one. It is a special scheme for special needs. For example, you need to look into inheritance issues as well, such as how much property would you like to leave to your family, rather than exhausting its equity. You need to do a good amount of homework anyway before making any financial decision.

The scheme is primarily a loan based on the value of your property but here you pay in the form of your property and you do not have to do so in your lifetime. You receive the cash either on a monthly basis or as a lump sum. This amount is recovered by the lender as per mutually agreed terms and conditions after the death of the owner of the house, or else when when the owner moves out of the house. So as long as you are alive, you can stay in your house, without ever worrying about your monetary needs. This scheme will serve you without the headache of repayments in your lifetime.