Baby Champ found nearly dead in a dog house in the valley..need help

How Do Equity Release Mortgages Work?

Now that mortgage providers are asking for such high deposits, the price of even the smallest starter home is now out of the reach of many first time buyers. That, plus the fact that house prices are now on the increase again, means that more and more parents are looking to equity release mortgages to provide the cash to give their children a helping hand onto the property market. If you are looking for a way to get your hands on the equity that is tied up in your home, here are the facts that you need to know.

What is an equity release mortgage?

An equity release mortgage unlocks the value that you have tied up in your property and turns it into cash, which can be used for any purpose you choose. Such arrangements are available to homeowners who are age 55 or over and they usually require no monthly repayment, they are repaid from the proceeds of the eventual sale of the property.

Why would you need to use an equity release mortgage?

Over the years, the price of houses has risen fairly steadily, which has led to many older people finding themselves in the situation of having money tied up in their property, but still being unable to afford to help their children buy a property or even pay for their own health care. An equity release plan enables them to realise that cash, but does not require them to move out of their home.

What types of plans are available?

Different providers offer different types of schemes and the main types are as follows. There are home reversion plans, where you sell the property, but you still have the right to live in it. Drawdown lifetime mortgages are schemes where you retain ownership of the property and borrow against the value of the property when you need to and, a simple lifetime mortgage, is one where you drawdown all the equity value in one go. In all cases, the value of the loan, plus the interest, is repaid when the property is sold.

Are there any downsides to equity release mortgages?

Equity release plans used to have a bad reputation because people didn't really understand what they were signing up for. Today, however, they are properly regulated and the terms are well documented by lenders. When you take out a mortgage release plan, you are borrowing money and there will be fees and interest payable. That means that are reducing the amount of money that your family will inherit and the family home will be sold to repay the loan. You should also make sure that any money you receive will not impact on your state benefit payments.

How do you find the best equity release mortgage for you?

As is the case with any type of mortgage, each lender has their own particular schemes with different terms, different fees and interest rates, and different degrees of flexibility. Most schemes will still be available to you even if you are not in the best of health and with many, you can still move home if you wish to. The best thing to do is talk to a financial advisor, tell them about your circumstances and your requirements, and they will be able to recommend the best equity release plan for you.

When you are in need of money, regardless of the reason, you might become rather frantic searching for options. Two of the most common options are equity release and taking out a mortgage. In most instances, deciding between the two is not just about comparing the numbers. It's also important to understand the qualifying criteria for each option. For instance, most equity release plans have a minimum age requirement of 50 years. Mortgages, on the other hand, have a minimum age requirement of 18 years and, in most cases, older applicants might not qualify.

Your regular mortgages are to be paid off over a pre-determined period of time. Equity release plans, on the other hand, will only need to be repaid when the homeowner passes away or moves into a long-term care facility. Once this occurs, the home will be sold to pay the outstanding amount.

There are certain equity release plans that require monthly instalments, but this is only to cover the interest rather than allowing it to accumulate. If you do not wish to make monthly payments, the interest can be added on to the amount due each year and paid upon sale of the property as a full sum.

Different options have their own list of advantages and disadvantages. Each of these needs to be compared carefully before signing on the dotted line. Being able to gain access to funds when you need it most is an important consideration to keep in the back of your mind. You never know when you might find yourself in a situation where your current financial situation is no longer adequate. In both cases, mortgage and equity release, you won't need to move from your current home.

There might also be minimum and maximum amounts applicable. In other words, some equity release providers have a policy in place that stipulates the minimum loan amount. In addition, when you access funds through an equity release, the provider will only give you a percentage of the current market value since they are paying now and will only receive repayment in the distant future. This equates to risk which is a determining factor when calculating the amount you can release.

One of the main disadvantages of a mortgage is the fact that you need to make repayments every month, or you might be liable for penalties. If you are no longer able to afford your mortgage, you could be in for a nasty surprise from your bank. It's important to consider other influencing factors like interest rates and set up appointments with at least three independent financial advisers. Let them analyse your financial situation before offering impartial advice on how you should proceed.

Get independent financial advice about home equity release.

I’m wanting to make a trip to the valley this weekend. There are a couple of injured dogs that need to be picked up off the streets but cannot find anyone to do so. This is a 16 hour trip, without detours (which always happen due to the amount of dogs suffering in the street in these areas). This time im targeting the remote areas, which usually mean more dangerous and more strays.

I’m willing to go, but I really need help with gas and dog food. I’ve spent way too much on dogs this week to afford a trip like this. The cost is usually about $200 for gas and $150 for dog food to feed the strays. If you can donate, please do so to make this trip possible. Im targeting five injured dogs, and probably will have a few extras like always. 😩 Like always, rescues/fosters needed, tell me what you want off the streets!

Picture: baby Champ found nearly dead in a dog house in the valley as I was driving by.

Leslie Hennings

FB threat here
Is an Equity Release Cheaper Than Taking Out a Mortgage?

When comparing an equity release plan to a mortgage, you will notice that there are several differences. In most instances, deciding between these two is not quite as easy as simply comparing figures. You also need to establish whether you qualify. Mortgages have specific prerequisites while equity release plans have different rules and regulations. For instance, mortgages are often easier to obtain at a younger age while equity release plans usually require the homeowner to be at least 50 years old in order to qualify.

A standard mortgage is usually repaid over a predetermined period of time. Equity release plans, on the other hand, only need to be paid in full upon the sale of the home. So, if the homeowner passes away or needs to move into a long-term care facility, the agreed amount will need to be repaid. It is crucial to understand that, if you decide to sell your home within just a few years of agreeing to an equity release, you could be liable for early exit fees. These fees are documented in the agreement itself which is why it's always good to take your time to read through everything properly. It also wouldn't hurt to have a legal advisor look through the agreement before you sign.

While some plans do not require any kind of monthly payment, there are those that allow you to pay back the interest on a monthly basis. The remaining amount of the actual equity release will be repayable upon the sale of your house. A mortgage requires regular monthly payments and these need to be made no matter what.

Each option has its own set of advantages and disadvantages. Remember that there are several options like lifetime mortgages and home reversion plans to choose from but it's important to understand exactly how each of these could prove beneficial. Once you have analysed these options, you can then compare them to a regular mortgage and decide for yourself which financial decision is best for your needs. It should also be noted that equity release plans allow you to tap into the value of your home without forcing you to move out. So, you can get the money you need without having to downsize or move out.

Other factors that need to be contemplated include the value of your property and interest rates. This is why the help of an independent financial advisor is so important. Not only will they provide you with helpful information but, since they aren't associated with a specific financial institute, you will receive unbiased information.

Like any financial decision, choosing to release equity will mean that you are bound to be filled with questions. Since there are so many different options and everyone has their own individual needs, it's important to gain a complete understanding of equity release and all of the possibilities available.

By choosing an equity release plan, you can free up some much needed cash against the value of your home. Now, there are various clauses, prerequisites and restrictions depending on the type of plan you choose. Some don't charge you any interest until you have to leave your home and relocate to a long-term care facility or in the event of your death. Others allow you to make monthly payments in order to cover the overall interest and avoid having it accumulate.

For those who are struggling financially and their pension pot does not suffice, an equity release can be just what you need to cover your living expenses all the way throughout your retirement. Alternatively, if you wish to make some kind of a financial investment, you can access the cash you need through an equity release plan and then use the money to invest as you please. Many homeowners choose to purchase a second property and either use it as a holiday home or rent it out in order to earn an additional income. If you wish to relocate and make your second property your primary home, you can then sell your primary home to cover the equity release amount and live out your golden years in the home of your dreams!

An equity release plan makes financial independence a possibility for everyone. Even though you are retired and no longer earning the same salary you had grown accustomed to, there's no reason you cannot enjoy your life. By accessing the money you need in this way, you won't need to dig yourself into debt by taking out another credit card, loan or going through the embarrassment of asking your family for financial help. Credit cards and loans might sound simple in the short-term but, over time, they can end up costing you so much more due to interest rates.

An equity release plan is also safer than investing in the stock market. The stock market is known to fluctuate and, while you might experience some wonderful profits today, tomorrow could quite easily be a very different story. Use the money you have and invest it in something sound and secure like property in order to ensure a brighter future for yourself and your loved ones.

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