How to Find the Equity Release Schemes with the Best Interest Rates
Equity release UK is something that interests many retirement property owners. The design of equity release loans is simple. It’s basically a lifetime mortgage that homeowners can obtain that allows them to draw a lump sum of money or monthly income payments from the equity in their home. The reason that equity release UK has become so attractive is that the loan most often does not need to be repaid until the property sells; the borrower is deceased or moves into long term care. Equity release schemes are designed for senior’s age 55 years and older.
These lifetime mortgages are a wonderful solution to financial problems, as often the seniors have settled down in their existing property for life, and repayment of the loan will never need to concern them as they will not be around to repay! These types of home equity loans can be obtained for whatever reason, whether to consolidate debts, pay for a start-up business, or help a grandchild with university tuition or deposit on their first house.
Equity release UK is easily discovered over the internet and this is where more & more over 55’s are conducting their research. In fact, the internet is one of the best sources for equity release information, advice and quotes, and a property owner needs only to browse the various websites to get an idea of the best interest rates on the market. How is this possible? It is possible through the various tools, information and free quotes that the sites provide. An excellent source of free information on equity release rates & deals is from the Equity Release Supermarket website which contains all the latest products & tools.
Beneficial tools contained on such websites are the equity release calculators. These provide a means to help property owners to determine the maximum equity release mortgage they can generate. Based on age, property valuation & history of health the equity release calculators are useful and easy to use. The homeowner must also know the details of their existing loan, such as their mortgage amount, their interest rate and once they have added these details with a bit of contact information, the homeowner will receive a free and no-obligation quote.
It is essential that when the homeowner receives the Key Facts Illustration (quote), that they are receiving quotes on loans from companies that are FSA accredited. The FSA regulates equity release loans which includes both lifetime mortgages & home reversion schemes. Obtaining a loan from a company that has been FSA trained and accredited ensures that the company follows FSA guidelines and regulations and that the loan is safe and fair. Another check that should be made regarding the equity release company is that they are a member of SHIP (Safe Home Income Plans). This is the equity release trade body set up in 1991 to provide consumer protection by ensuring that lenders met relevant criteria.
The homeowner has the advantage to shop around and compare the various quotes prior to making a decision as to the best loan for them. However, before choosing the best loan, it is important to work with a company that will guide and advise you and be there to answer all your concerns and questions. Always obtain independent equity release advice from a reputable brokerage who can search the whole of the equity release market for you.
If you would like more information on how to compare equity release companies bonded with Ship as well as how to seek professional independent equity release advice be sure to check out the links above.