Equity Release: the Product to Finance your Old Age

by : Derrick Adolfo

Financial hardship is, frankly speaking, not-so-remote a likelihood of old age. This can happen due to a variety of reasons, but more especially as when the retirement amount is a little too small to take care of your needs in old age. If such a situation has gripped you, there is a scheme devised for you.

For the older ladies and gentlemen in the UK, who own a home in the UK, and are facing the risk of money-shortage, they can go in for the scheme called 'Equity Release'. The scope of this product covers your major financial requirements in old age, when you are no longer an active working-earning member. This means of securing one's 'second childhood' seems to be gaining ever-increasing popularity throughout the world, not just in the UK. And you too, can cash in on this booming market by availing to the benefits of this financial product.

Equity Release is a financial method based on the concept that the old homeowner, who is in need of cash, can be provided with a loan amount by a lender. And this loan amount need not actually be repaid during the lifetime of the old person. It can be repaid by way of the borrower's property after death, and also in the event of the borrower's movement out of his/her property. Bigger the loan amount, greater the financial security assured for the old homeowner in such a precarious time as the old age.

Another major benefit seen in financial scheme is the privilege of the homeowner-borrower to ask for lower interest rate, if the interest rate on loans falls in the loan market. One precaution to consider before applying for this scheme is to compare the the total loan amount you are approved to receive versus the estimated amount your family would inherit. Once this is decided, this scheme could be just the best answer to your old-age woes.