Equity Release Providers
48How can I access the equity in my home?
More and more in this day in age, homeowners are beginning to tap in to the equity that they have built in their homes. Some people use Home Equity Lines of Credit to access cash from their built up capital to do things like make upgrades on their home, pay for school or maybe use in case of an emergency. Another generation of homeowners have been accessing their equity more and more to use as a means of monthly income.
Who uses their equity as income?
Retirees have been using the equity built up in their homes as a source of income for decades. It has become even more popular as of late due to shrinking savings account balances from the recession. The elderly gain access to their equity through an equity release. This can also be known as a reverse mortgage or a Lifetime Mortgage.
Who are equity release providers?
Equity release providers are typically insurance companies; however some banks also provide equity release loans. The lenders are the equity release providers. Usually the insurance company will give the borrower a lifetime annuity, or a fixed income for the rest of the borrower’s life as long as he still lives in the home. For many this is a great deal, it is essentially just borrowing money from yourself because it technically is your money, but you don’t have to sell your house to access the value. You do not have to pay it back until you die or leave the home. Basically you are living rent free in your home, receiving monthly annuity payments off of the equity.
Some other Useful Equity Release Links:
2) Best Equity Release Schemes
Is this for everybody?
It is important to research the details of the equity release. Some equity release providers may charge very high fees or very high interest rates in order to access your equity.
Equity Release Advice
