Retirees can receive an extra monthly income in conjunction with their pension to help meet their needs. There are equity release schemes available to them that allows them to borrow money from the equity accumulated on their property. Lenders expect the property to have a certain amount of equity accumulated on the home before the retiree can borrow. Also, with the right equity release scheme, the retiree may be able to live in his or her rent free.
Some of the equity release schemes include interest-only lifetime mortgages, roll up lifetime mortgages, and home reversions. With a roll up lifetime mortgage and home reversion, a retiree doesn't have to make any monthly payments. In fact, the interest will still accumulate, but once you leave the property permanently or move into a home care unit, the interest will be paid off. With an interest-only lifetime mortgage, the interest must be paid while living in the home.
Interest-only lifetime mortgages allow a retiree to keep their mortgage payments down. In fact, the retiree only pays the interest. Once the interest is repaid, then they can begin paying on the mortgage. By getting an interest-only lifetime mortgage, the property may be paid for before the person dies, so it will allow the property to be handed over to a loved one. (more...)