Equity release is a financial scheme that serves to obtain cash after the calculation of the value of your property, and that can be repaid after death, in the form of the property thus mortgaged. There are basically two types of equity release mortgage plans. One is home reversion and the other is lifetime mortgages.
But the common point is that all capital release plans basically serve the same concept: that is, release the equity tied up in your home, your property. What is being talked about is the cash you can get in exchange for your property.
Due to the nature of the financial plan, capital release is a more suitable scheme for the elderly and it is mainly people over the age of sixty who are eligible for it. You can use the cash you get through the equity release mortgage to help your retirement benefits. However, you should carefully consider some facts. You’re sure to get some welcome cash in your kitty, but then if you have heirs, you need to take care of what you leave behind. She may want to write a will for them and may not want to deprive them of what she would ideally like to leave them. Heredity is an important issue to consider. Another important thing to keep in mind is the negative equity balance. This means that your debts should also decrease, in case the market interest rate falls.
Since it is very much about what will happen in the future, you have to be careful what you decide in the present. All points must be carefully considered, all clauses weighed, preferably with the help of financial experts to decide what is best for you, and before going to the mortgage documents to sign the dotted line.