Equity Release to Make a Difference in Retirement, Says House of Lords

Committee

Retirement plan that receives appreciations from all quarters is wise to go for. These noble words befit equity release scheme. By seeing numerous positive

responses from the end of retired households, now government has also been forced to take note of equity release scheme.

ARecently a House of Lords committee put forward a not in front of representatives in the house. The report was on based on retirement plans and how they are making a difference in the life of retired citizens in the UK.

It was not a surprise that the committee took the virtues of equity release scheme into notice. The report mentions about the role of equity release into the life of senior citizens. It goes on

Image source: http://goo.gl/8y2il

mentioning that equity release, in truth, makes, and is capable of making, a huge difference in the life of retirees in the UK.

It is not a secret that equity release plays a vital role in the retirement. Over the last many years, this scheme has been a key

solution for all the financial queries in the retirement age.

But, still, there are some clauses in equity release that prevents it from becoming the single major retirement solution. High interest rate is a cause of concern

for majority of the retired citizens. In the hindsight, if you dig deep into the scheme, up to 7 percent of interest rate can be justified but you should also keep in mind that people give verdict by the comparison of one with another plan.

In comparison with other mortgage plans, equity release interest rate might seem to be higher but it holds an upper hand in terms of benefits. You can enjoy certain time and means tested benefits with equity release scheme.

Image source: http://goo.gl/JxSSf

Ownership of the house: Only a few mortgage policies, including equity release, offer the right to retain ownership of mortgaged house. You can live in the house, rent-free, for entire life span. The loan amount is repaid by selling off your house to the third party, usually after the death of occupant. In case of the couple, the procedure takes place after the death of younger one.

No Monthly Repayment is required: Equity release scheme does not ask you to make monthly repayment. Entire interest builds on and added to the principal amount, which is paid at the end, usually by selling off your property.

Tax Free Income: Equity released income is does not amount to any tax cut.

Last but not the least; you have freedom to use the equity released money the way you want to. Most people use this money to go on holidays, home improvement or for improving personal lifestyle, while helping a family member in academics, marriage or businesses is also in trend.

Image source: http://goo.gl/3hXd0