Equity release is a way of turning property into cash and is becoming an increasingly attractive decision for older property holders. The schemes can help to pay for a new car, a holiday, home advancements or simply provide extra income.
As a result financial institutions have established packages to meet the requirements of the market through financing. For someone whose only asset is your home, there is the Equity Release Loan.
It is a way of unlocking the value of your property without having to sell it off. Equity Release Loan means releasing equity in a real estate property owned. When you have property, you have 100 per cent equity in that property.
What are the benefits?
The benefits are that you have access to liquidity, which will permit you to do a range of things like starting–up a business.
Held well, this may also be the starting point for you taking advantage of several mortgage options to grow your property portfolio.
Moreover, mortgages tend to have lengthier repayment periods and more friendly interest rates compared to those of or normal business loan products.
Mortgage or not?
A mortgage is a loan secured by a property/house and paid in installments over a set period of time. The mortgage secures your promise that the money borrowed will be refunded. For most of us, a mortgage is the prevalent and most serious financial obligation we ever make.
There are many different types of mortgages, each with its peculiar benefits and shortcomings, it is very important that you do your research. Remember that many people are impacted by predacious financiers and given mortgages that they cannot sustain.
Understanding the modifications in mortgages will assist you to decide on the right mortgage for your financial situation and housing goals. Be an educated consumer!
By Ssanyu Joan