People who are over the age of sixty-five and who have applied for a mortgage have been rejected in the past; however, retirement mortgages are becoming very popular today. The main reasons for this is that many pensioners still receive a significant income during their retirement years, many pensioners are now planning better for their retirement, and many pensioners still have a long term mortgage and are looking for a way to obtain a better mortgage deal. This is where equity release mortgages provided by Stonehaven come into play. If pensioners want to increase their income during retirement, they can do so using the equity release which allows them to use a value of their property to receive a large amount of cash or monthly installments.
There are two main types of equity release available from Stonehaven for pensioners – the home reversion plan and the lifetime mortgages. The home reversion plan allows home owners to sell a part of their homes for a lump sum of cash in return. So when they die, they property is sold, and the lender gets back the agreed proportion regardless of whether the value of the property has increased or decreased during the years.
The lifetime mortgages available to pensioners allow them to take out a loan on their property so that they can generate cash to use for other purposes. The interest of this loan is paid at death though the sale of the property.
If you are a pensioner, you might be wondering to yourself if you meet the requirements of an equity release mortgage. Well, are you older than 55? Do you own a property that is worth at least £80,000? Do you want to stay in your home yet at the same time release capital? If your answers to these questions are yes, then an equity release mortgage is definitely for you.
Equity release mortgages are very beneficial to pensioners as well as non-pensioners, but they do have some risks. This is why you need to carefully consider all of your options before choosing an equity release mortgage unless it is really what you want.