Compare Rates on Equity Release Mortgages
Have you ever considered getting a mortgage to help pay for your retirement? This might seem like an unusual idea, but it is actually quite common in England. Equity release mortgage is one of the most popular ways for retirees to get access to their money and enjoy a higher quality of life as they age.
There are a few different types of equity release mortgages. One is called an annuity loan, and this one turns your property into income by using your home as collateral. The other type is known as lifetime mortgage, which you might also call reverse mortgage in the US. This basically converts the value of your house over time so that you only have to pay for it once when you die.
Both come with certain risks and disadvantages, but they are both excellent ways to make sure that you have the retirement in which you deserve.
For example, the annuity mortgage can be a risky idea if you need to take out loans to cover your living expenses. The lifetime mortgage, on the other hand, can mean that you will have less money for retirement because of all those years where it is compounding in value rather than getting paid off by monthly installments.
Also, if you need to take out loans to cover your living expenses, you will have a difficult time finding creditors who are willing to loan you money for the annuity mortgage.
Finally, with the lifetime mortgage, you might have to pay inheritance tax on your estate when you die.
Which one is the best for you depends on your personal situation. You should contact a professional to discuss all the options, to be able to make an informed decision.