General Advice on Equity Release Loans

Numerous people utilise equity release loans to finance a holiday of a lifetime, pay off bills, or simply to enjoy a more secure and comfortable retirement. Whilst this type of loan may not be suitable for everyone, for many homeowners it can be an easy way to unlock the value of their homes without having to stress about repayments.
With the majority of equity release loans you have the option to receive a tax-free lump sum or have it in installments so that you are provided with a regular income for the rest of your life. If it seems like a good way of funding your retirement then here are a few things worth your consideration.

1. Ensure your eligibility because you need to be 55 or over

2. Your state benefits and tax bracket may be affected

3. Discuss it with family before making any decision as it will undoubtedly affect their inheritance

4. Get your home valued. A minimum of £50,000 is usually applicable. This can vary but will always play a part in determining how much money you can release.

5. Ask your equity specialist for a personalised illustration so you can be aware of all the costs, features and risks involved.

Equity Release Loans should be SHIP protected

An equity release loan is a massive financial commitment and so it is crucial that you are protected. Make sure you use an independent specialist that follows the regulations set out by the Safe Home Income Plans (SHIP) organisation. This means that your loan will come with a set of guarantees. These include:

* The right to move your equity release loan to another property

* The right to live in your home for as long as you wish

* You will not fall into negative equity regardless of what happens to the housing market in the future

SHIP is dedicated to protecting homeowners who take out equity release loans. It was launched in 1991 and all participating brokers will have agreed to follow the SHIP code of practice to provide a fair, simple and complete presentation of their plans.
For more information consult an independent equity release specialist.
Equity release loans are available through Age Partnership - http://www.agepartnership.co.uk