Suffering from huge amount of debt is common now-a-days. People who thought about pursuing luxurious lifestyle ended up in knee deep debt. They took every kind of loan to satisfy their soul. In this way millions and millions of dollars are still pending. The failure of the people in clearing their debt has ignited the economic crisis. Many even predict that the number is likely to rise in the coming years.
There are numerous ways to pay the outstanding debt. The government offers consolidation, rehabilitation and other programs to benefit the borrowers. But if you tag yourself with defaulted loan status then it’s hard to receive governmental financial aids. Sometimes, the government departments size a portion of your income and restrict you to get tax benefits. These situations have made the debtors to start thinking about other ways to generate money.
How to receive Equity Release?
Equity release helps you to earn an additional monthly income. It allows the people over 55 years old to get some tax free money from the actual value of their property. It is a great way to generate extra income at the retired age. You can easily make choice of how to receive the money in this process. You can either have the money in lump some or in suitable monthly installments.
Equity Release Schemes
Lifetime Mortgage- this is one of the best equity release plans that allows people to get monetary benefits without any preliminary payments. The amount of money basically depends on your gender, age and the actual value of your property. This plan also provides you the freedom to live in your house for the rest of your life. This equity release plan never allows the lender to own your house. If you ever sell your house or move permanently, the lifetime mortgages have to be paid off. The interest rate in this scheme is based on the amount you borrow.
Home Reversion Plan- this home reversion plan permits you to sell a section of your house. In this process you get the market value of the part you sell and you continue to reside in that house for the rest of your life. The home reversion company will get a percentage of that sell.
Home Income Plan- This plan has been constructed to provide additional monetary benefits to maintain post retirement lifestyle. The wealth provided in this plan sometimes used in annuities. The equity release U.K provides all these plans to benefit the elders with monetary relief.
The writer,Jonathan, in this article has taken us with the profitable equity release plans that are very much important to help a retired person to meet his financial needs. The different plans are carefully created by equity release UK to provide useful benefits.