There are certain times and situations in life where all you need are money and mental strength, like a sudden hospitalization of a family member, a sudden accident that requires treatment and so on. While you are still employed you can easily face such situations by taking up loans, since you know you would be able to repay them with your monthly salary. But after your retirement, the condition becomes a little complicated. After the recession hit the market, the pension amount has been drastically reduced and some companies have stopped paying pension altogether. Hence all you can do is borrow, give up your savings, mortgage or sell your property. But all these options are extremely impractical instead you can opt for equity release plans, if only you have a property to your name.

An equity release loan is much like mortgage but there are differences too. the first difference is that by mortgaging your house, you can ask for a loan amount that you require but with equity release plans the loan amount you would receive would depend upon the valuation of your property, even if the amount is more or less than what you require. The second and probably the biggest difference is that with mortgage, if you are unable to repay your loan amount within the stipulated time, you would have to lose your property to the lender. But by taking an equity release loan against your property, you can call your house your own as long as you live even if you cannot repay your loan amount. Your property will be taken up by your lender only after your death, after paying the amount of money left from the valuation of your property, if any, to your beneficiaries. And this is probably the only disadvantage of equity release plans; you would not be able to leave anything for your beneficiaries.

This particular disadvantage is the reason that an equity release loan against the valuation of a property is more suited for people who do not have anyone to leave anything to. Even if you do not need money, you can opt for this plan and do whatever you want to with the money that you receive. After all, retirement should be filled with tension free relaxation and enjoyment, which you have missed all your life, working for your family and yourself. And you deserve it too.

Dorthy Williams is a professional author who writes articles on equity release plans and equity release loan. For more information he suggest to visit website .

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