Equity release schemes are a way of releasing equity that has built up in your property. If you own a property that is worth £200,000 and have an outstanding mortgage of only £30,000 in simple terms you have equity of £170,000 available in your property. Some or most of the equity can be used by you rather than being tied up in your property to be inherited by your children and grandchildren.
There are several forms of equity release schemes available. The most popular ones give you a small lump sum to go out and spend immediately plus a regular monthly, or annual income. There are many variations which means that most people can find a scheme to suit them and their personal circumstances.
Where to Find Equity ReleaseSschemes
Most banks and some building societies offer equity release schemes or will put you in touch with people that do offer them. You can also speak to friends and family about the release schemes they have used. Most of the companies that offer them advertise regularly in the local and national newspapers and have their own websites, so you can find them easily online.
However, before going out and buying an equity release scheme it is very important that you understand exactly what they are and the different types that are available. This means that you should seek independent financial advice to begin with. A member of the IFA will explain the various types of schemes to you. Giving you an overview which should enable you to know which is the best type of scheme for you. Once you have obtained independent financial advice and feel that you understand what you are buying you need to shop around for the best deal.
Comparing Equity Release Schemes
Shopping around means comparing each scheme and understanding how much income or cash you will get from each of them. The internet is probably the best place for doing this. However, trawling through individual sites is both time-consuming and unnecessary. The most efficient way of comparing schemes is to use a website that takes quotes from the biggest UK providers and either present you with those quotes or the lowest quote available for you.
Age Partnership monitors and compares equity release schemes from many of the UK's largest providers. By visiting their website you can find the scheme that offers the best value for you.