Equity release has certainly become popular among senior citizens in the UK. Equity release schemes are now a lot easier to understand and are more accessible, which has given older people a reason to cheer. Taking out a mortgage has always been complex for retirees. The long process and complicated regulations made it almost impossible for older people to apply for a mortgage without taking proper professional help. Older retirement plans did not always work, so equity release is becoming more preferred by older people who own a property. Mortgage lenders seem to be reluctant to grant mortgages to retirees beyond the age of 75 upon equity release examinations of current products.
Halifax equity release offers an easy and practical equity release service to its customers. It is often near-impossible for a retiree to get a loan sanctioned because of their age and unlikely ability to pay loans back. Halifax has broken this misconception by providing attractive equity release schemes to its customers.
There is a niche market for certain professionals to exhibit their skills and therefore the Halifax branch networks you will find are unable to offer advice. This fortunately is left to certain qualified intermediaries who have the appropriate Halifax equity release examinations, license to provide advice and guidance on this product. Therefore, safety and quality of advice should prevail.
The retirement home plan for seniors which is provided by Halifax is the first chapter of the story.
About the Halifax Retirement Home Plan
The Halifax retirement home plan is an interest only lifetime mortgage plan in which the outstanding balance remains unchanged until the end of the deal. The borrower has to pay a partial sum of interest to the lender every month. Previously, seniors with equity release schemes did not make any interest payments and so the loan amount kept increasing month after month. In short, by the time a borrower dies, he or she has a big debt over their head and even more concerning would be the inheritance left to the beneficiaries.
Halifax retirement plans enable the borrower to pay whatever interest is charged from variable resources. The source of income can be a private or occupational pension, or state grants such as government pension, or means tested benefits such as pension credit. They also accept other forms of income such as DLA (disability living allowance), Industrial injuries benefit and carer’s allowance. Finally, rental income is acceptable at the discretion of the underwriters providing a short hold tenancy agreement is in place and the amount used for equity release calculation purposes is at least 60%.
Halifax is among the best equity release providers and that is the reason why they are trusted and becoming used more than many other equity release service providers.
Other Choices on the Market
During the equity release examinations it was determined that more than one provider offers an interest-only lifetime mortgage such as Stonehaven. It is important that you consider all of your options not only with interest only loans, but with other equity release schemes. Stonehaven has more than one plan to ensure your retirement is as pleasant as possible.
The main thing to remember no matter which company you choose is that you need a plan that fits your income and ability to repay. It also needs to fit your beneficiaries if you intend on leaving something behind.
An interest-only lifetime mortgage plan from Halifax at least offers the option of leaving behind a little inheritance. This is due to the principle balance remaining after the scheme is over. It is dependent on whether you live past the age the scheme will end. Typically, this type of option is complete at 75 leaving you no choice but to sell the home to pay off the principle balance.
In this situation or with a sale after your death, you at least have money from the sale. Whatever is not going to the mortgage provider to pay off the principle loan amount is going to be yours or your beneficiaries.
When you conduct equity release examinations, speak with your family and a financial adviser. You want to speak with an independent adviser and not one offering a home retirement plan. In this way you can check the facts and validity of what you learn when you contact the supermarket about Halifax Retirement Home Plan choices and other products. Contact us on 0800 5159 678 about the Halifax Retirement Home Plan today & see whether it can help with your retirement plans.