Which is the Best Option Between an Equity Release and Interest Only Lifetime Mortgage Scheme?
- October 21, 2013
- Jasper Kent
- Comments Off on Which is the Best Option Between an Equity Release and Interest Only Lifetime Mortgage Scheme?
There are many options available to people looking for an interest only lifetime mortgage as a way to release equity in their retirement. These products are usually aimed specifically toward people looking for additional money out of their home investment while in their retirement.
The interest only lifetime mortgage is great for those who have a large lump expenditure that they wish to finance. This type of mortgage can provide them with a large sum of money out of the value of their home, allowing them to stay in their house.
Such a product is great for people looking to put on an extension to their house, or perhaps buy a boat to enjoy their retirement with. These kinds of large purchases don’t require complex and expensive loans, but rather an useful equity release product which can supply the money needed and still keep plenty of value in the house.
The interest only option is great for those who have a good pension or other source of income, so they can then keep the actual value released to a minimum. The interest only option means that the interest does not continue to eat into the value of the house.
Such products are an excellent way for people in retirement to fund large purchases in a financially efficient manner. Value is maintained in the home as an investment, but there is also the equity made available.