Equity release is a special instrument which helps a person to get back some money. This requires him/her to receive the amount through mortgage of his home or other valuable assets. When these are sold, the amount is paid. An equity release calculator helps to calculate the asset value. find more info
There are various schemes in this form of debt. These are- Lifetime mortgages: this is a tax free cash receipt. There are no payments involved. The second one is called Drawdown lifetime mortgage which helps you to receive money at periodic intervals. The third one is called Home reversion plan which directly pays you in case you sell your house. The last one is called Enhanced lifetime mortgage which results to more cash depending on the lifestyle.
In case you are a fresher in this field and do not have any idea, consider an equity release calculator. This not only updates the current value of your house but gives valuable information regarding the different mortgages. Take help of an equity release consultant for achieving the correct value of your house as well.
While using these calculating machines make sure you do not give your personal details. Remember some of these are online and may extract all these important information. So be careful while choosing the type and look for the Safe Home Income Plan (SHIP) logo. This system launched in 1991 focuses on three items- negative equity, the right to remain in the personal house, freedom to move to another property.
Compare the various schemes that are on offer during your transactions. Various people have different needs and one should opt accordingly. Make sure you read all the instructions carefully as these change often. As more people are relying on them, a number of companies are offering the same. It is better to compare the interest rates, charges, fees etc. before proceeding.
Let’s concentrate on the equity release calculation, shall we? First the market value of the asset should be known. Research on your own and take the help of a real estate agent for this. Second: save a lot of cash before you proceed for the transaction. Remember this is a form of debt and you can lose money later. Third: select a company and go ahead with the transaction. No matter whatever you choose, make sure you know the exact value of your property through an equity release calculator.