Know Regarding the Specifications of the Equity Release Types

Know Regarding the Specifications of the Equity Release Types

At present equity release is perceived as a potential investment to spend the old age independently even after retirement till the last day.

Home Counties equity release equips you with generally two types of equity releases on a broader basis. They are home reversion and lifetime mortgage scheme.

Learn About the Different Specifications of Lifetime Mortgage and Home Reversion Scheme

  • The first and basic difference between the two is that even after taking up a lifetime mortgage, you still tend to continue as the owner of the house whereas, with home reversion scheme, you basically sell a part or whole of your house for a lump sum or regular income while still continuing to live in the house.
  • Secondly, you get a fixed interest rate with moderate lifetime plan in order to settle for a compound interest lasting over the years. While in-home reversion plan, there is no scene of interest, the amount that you are paid for the part or whole of your house represents the duration over which the company guesses the plan to last.
  • In lifetime mortgage, you don’t really need to make any kind of repayment during the validity of the mortgage plan. But in home reversion plan, the company bus the property for a promise of cash or regular payments. The amount that is fixed for the house will always be less than its market value, but you can still continue to live in the property without rent till you die.
  • The interest that is on the mortgage generally gets rolled up and ends up being added to the final mortgage. In case of the latter, the company pays you based on the share of the property sold and receives their sale proceedings of share respectively.

It can be clearly pointed out that they have both their significant plus and minus. The best of any of the equity release scheme comes out depending on the assessment of your personal situation or need.


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