Gone are the days when people stopped living their life once they had retired. Today, retirees are exploring new opportunities to enhance their lifestyle, even after retirement although it is tough to manage finances once employment ceases. A new generation of older people is evolving and they don’t think or feel that the retirement is an end instead they consider it as a new beginning. Yet paying for that life is tough. There is an answer for your dreams to be met in equity release loans.
Pensioners have long list of dreams and desires that are not fulfilled during their busy hectic routine working life. The dreams are innumerable such as spending time going on long fun filled holidays, travelling around the world or even living a peaceful life in the best of the luxuries back at home. Reasons could be many but the objective is only one and that is to have a life of fulfilment.
This is one reason why equity release loans are turning out as one of the most feasible retirement solutions for the generation now retiring from work. It provides an opportunity to the retired population in releasing equity tied up in their home without losing the ownership during their lifetime. With the money released from these schemes, they are free to live their life as they had always desired.
As the mortgage market is tightening its lending criterion, the equity release loans market is accelerating with fresh applications from retired people wanting to fulfil their dreams. The reason behind such a boom is in the change of mindset of retired people. They don’t consider an end to their fun filled life after their retirement, instead the older generation is finding it as an opportunity to make the best out of their remaining life. One of the factors providing this age group with peace of mind with equity release schemes is a guarantee of no negative liability. This means your beneficiaries can never end up owing more than the property is worth.
Exploring the Specifics in a List
• Age requirement is 55
• Home ownership is a must, the lifetime mortgage can be taken out as a second mortgage; however, it is really a must to use the equity to pay off the remaining balance of the other mortgage if you wish to have a healthy retirement and end to your mortgages when you move.
• Health is a consideration
• Housing valuation is necessary
Having two mortgages on your home in which you pay a mortgage and then have one you do not pay until death makes for a harder situation. This is why it is really a “must” to pay off the existing mortgage with your new loan and use what is left over to make your retirement comfortable.
While you can access these loans at a young age remember they are for retirement. At 55 you still have several good years of working that could add to your pension fund and reduce the amount you will need to borrow in an equity release for your retirement. There is one reason you might wish to get a loan so early and that is health issues in which case you might qualify for the illness lifetime mortgage that allows you to get a larger lump sum with the thought it will be paid back quicker.
Housing values are going to change. If you are not in need of any funds right now and your house value has not returned due to the economic recessions consider waiting a little bit. This could provide you more equity to draw on in your retirement.
As you consider these products as a potential to fulfilling your lifetime dreams make certain you are aware of the compounding interest that could lead to the sale of your home. Also remember that the more equity you use now the smaller amount left for your family. Ask your family what they think too.
Equity release loans offer an easy finance option based on the equity build in home to people who have attained a minimum age of 55 years. The attitude of people regarding inheritance is also changing with time. They feel that retirement is not an end to life and they could have a better time post retirement, as there is no office and no work. It is good for their health as a healthy state of mind also helps in increasing the longevity of life. In essence – everyone’s a winner!