Currently, DIY equity release schemes are becoming increasingly popular. But, what exactly are equity release schemes like those found at www.switchequityrelease.co.uk? If you are 55 years or older and are in need of extra finances, an equity release scheme will be very appealing to you as it allows you to release money that is tied up in your home. Some equity release schemes make it possible for you to obtain a lifetime mortgage that requires no monthly repayment, while others allow you to sell a part or all of your property while you still live in it.
The term DIY equity release scheme has a two pronged meaning. First of all, it refers to the fact that these days people are doing their own online research on equity release schemes instead of relying on others. There are more and more equity release websites such as www.equityrelease2go.co.uk on the internet that provide people with all the information that they need to make their own decision. They can decide on their own which equity scheme is suitable for them.
Although home owners can now independently obtain as much information as they need to make a decision, they still need to seek advice from advisers who are regulated by the Financial Conduct Authority or the FCA.
Another organization which is a trade body within the equity release market is the Equity Release Council and which equity release providers must be members. This organization protects the rights of the home owners and makes sure that they are not taken advantage of by the equity release provider; therefore, any home owner considering equity release must seek the advice of an FCA authorised consultant.
The money obtained through equity release can be used for a number of purposes; however, home owners can use the money for DIY projects especially home improvement projects such as building a new kitchen or bathroom. Many of them are using investing in reorganizing their homes in such a manner to meet their physical conditions. As home owners get older, many of them are faced with physical conditions that render them immobile so they may need to make some modifications to their homes.
The great thing about using money from equity release to invest in home improvements is that you will be taking money out of your property to invest back into it so in the end you will be increasing your property’s value. This can mean more equity can be released later on in your life. After all, if you take only a small lump sum now, you can restructure your lifetime mortgage for more money. You also have the option of moving house to downsize and take your mortgage with you. It just depends on the product you found at www.equityrelease2go.co.uk.
Lifetime mortgages are just one product. They are mortgages with interest that accrues. Instead of a regular mortgage you had for 30 years, you make no payment until you die or move out. Yet for some, leaving behind a mortgage is still not something they want to do.
If you do not want a mortgage but need equity funds you could downsize to a new home and use the larger house value to pay for your retirement. On the other hand you could consider a home reversion.
Home reversion is not a mortgage and you can remain in the same home you are currently living in for life rent free. Under home reversion you sell a part or your entire house. You gain a lifetime tenancy agreement ensuring free rent until you are ready to move on in death or to a retirement home.
Your family is not burdened with debt that has to be paid by the sale of your home. Instead, this option often leaves a guaranteed inheritance. This is because any unsold portion of your home left at the time you move or die is bought by the provider at slightly less than current market value. Once your home is sold on the real market for current market value the provider takes their money. They also give the inheritance payment to your family.
Financial Advice Needed
Do not make rash decisions. Instead, you should approach www.equityrelease2go.co.uk for answers regarding equity release options for retirees. You then need to speak with a qualified financial adviser well versed in equity release schemes. In this way you can choose the right solution for your needs as you age and wish to enjoy retirement. Your family will thank you for taking some time to decide.