If your regular income is falling short of what you consider as sufficient to cover your monthly expenditure, you need to go for a financial scheme that can ensure you a good amount of cash every month. Say, you have some shopping plans such as buying a new car, financing holiday trips and you do not have enough cash in your hands. What do you do?
Equity release mortgage is the means by which you can convert your home equity into flowing cash into your hands, ready to fulfil your day-to-day needs and expenses. Financial problems can come rolling, especially in your old age, when you are retired and your pension is not enough to serve your needs, which may, in fact, increase during old age due to added expenses in health care. The money you get in this scheme helps you to supplement your monthly income and takes care of your expenditures.
Equity release mortgage is thus a scheme more feasible for the old people. The only important criterion to avail to this scheme is that you should have a home, from where you can release its equity. In this scheme, you are given an amount that is, in fact, part of your home. And the good thing is you do not have to pay that amount during your lifetime. The amount plus the applicable interest is repaid to the lender in the form of your property. In other words, the lender takes possession of the property insomuch as it equates the repayment amount.
There are many variants available in the scheme and you may require the services of a financial expert to guide you as to which scheme would suit you best. And if your wish to know, among the ones which people generally opt for is Home Reversion, Home Income Plan, Interest-Only Mortgage and a Lifetime Mortgage.
