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At equityreleasecompared.com, you will find an equity release calculator that will help you find out whether you qualify for equity release and if so, the maximum amount you can release. This calculator is fast and easy to use, and will guide you to the next step of choosing among the different schemes available. The world today is experiencing dramatic changes. As a result of better technology and medical breakthroughs, people are living longer. On the other hand, the cost of living is spiraling out of control, making it harder for retired individuals to live off their limited pension income. This has resulted in the adoption and popularity of home equity release schemes". These schemes have allowed retired homeowners to remain in their homes, and still have access to extra income. For those people with outstanding mortgages, the value of the mortgage is deducted from the total value of the home. Just like any other financial decision, you should seek the advice of qualified specialists before you decide to join a home equity release scheme. A specialist will be able to advise you on the best scheme to cater for your requirements. The wrong decision may lead to financial ruin, so great care should be exercised. Equityreleasecompared.com has all the information regarding the various schemes, as well as all the lenders in the market. There are two main types of equity release plan in the UK, the lifetime mortgage and the reversion plan. With the lifetime mortgage, you have the option of taking a lump sum or agreed periodic installments. With this plan, you keep ownership and live in the house for the rest of your life. The loan repayment and interest therefore accumulates against the property. This is the most popular type of scheme with many homeowners. The homeowner will be responsible for the upkeep of the house until death, or transfer to a rest home. When any of these events occur, the property is sold, and since debt cannot be more than the value of the property, no liability is carried over to other members of the family. With the reversion plan on the other hand, the ownership of the property is transferred to the home equity lender, but you may continue living in the house rent-free for the rest of your life. You may opt to receive a lump sum or monthly installments in return. With both plans, you get to enjoy needed income while staying in your house for the remainder of your life. Home equity release has given new lease of life to many pensioners who would otherwise not have survived comfortably on their pension. Through the Financial Services Authority, the UK government closely monitors the home equity release schemes in order to protect its senior citizens. You will find a list of lenders approved by the Financial Services Authority at equityreleasecompared.com. People engages in these schemes are advised to join the Safe Home Income Plans in order to safeguard their interests. It is important to note that before undertaking such a venture, you should carefully consider all the pros and cons. The advantages are that you will receive tax-free income, you will be protected against a slump in the housing market values, and reduce inheritance tax in the process. On the other hand, you will leave your family with less inheritance. The specialists at equityreleasecompared.com will give you advice and guide you through this process. With the online equity release calculator, you will be able to know exactly how much you qualify for, and this will help you make an informed decision.
About the Author For more information about home equity release, visit http://www.equityreleasecompared.com/
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