As we all increasingly live longer and enjoy a more active lifestyle in our later years, many people have started to explore ways to raise capital to secure their future. One of the more popular options is a lifetime mortgage, a secured loan against your property which allows you to retain ownership and which gets repaid (along with any accrued interest) once the plan-holder either passes away or enters into long-term care.“Open to those aged over 55, lifetime mortgages come in a variety of plans which allow you to access the equity tied up in your home in either a lump sum, a series of smaller amounts, or a combination of both,” explains Paul Carter, chief executive of Leeds-based mortgage lender Pure Retirement.“Lifetime mortgages typically don’t require you to make repayments, though some plans now allow you to make optional monthly repayments to service the interest and capital – nonetheless, it’s worth considering that over the course of the … [Read more...] about Do you want to access the equity tied up in your home?
Releasing equity from your home
Dozens of hopeful homeowners are crowded around a stall, excitedly clutching hand-drawn plans for their dream properties. A team of experienced builders is hosting an 'ask the expert' session and those queuing are desperate for help getting projects off the ground. They are among 30,000 budding DIY housebuilders who have descended on The Homebuilding & Renovating Show at Birmingham's National Exhibition Centre. Inspired by hit TV shows such as Kevin McCloud's Grand Designs, they are hoping to pursue the dream of building their own home. House proud: Designing and building your own home is a booming business. Last year, so-called self-builders made around 15,000 homes The atmosphere is buzzing. There are a handful of families and young couples, but most visitors are in their 50s and 60s. Hundreds of stalls are selling Scandinavian and Alpine lodge-style homes, design and building services and renewable energy heating. There are workshops on everything from finding land and applying … [Read more...] about Could YOU be a Grand Designer? How to build your own home
Holly Johnson, provided by Published 7:40 am CDT, Tuesday, March 12, 2019 Shutterstock Home equity loans and HELOCs — both of which are commonly called a second mortgage — allow you to borrow against the value of your home. Many people use home equity products to pay for remodeling projects or to consolidate high interest debts. Home equity loans come with a fixed interest rate, fixed monthly payment, and fixed repayment timeline. This makes them a predictable option for borrowers who don't like surprises. HELOCs, on the other hand, come with variable rates and let you borrow as you need. In fact, they function a lot like a credit card, the main difference being that you're using your home as collateral. Even if you have no desire to prolong your mortgage payment or add to the debts you have, there are plenty of good reasons to borrow against the equity in your home — commonly called a second mortgage. Interest rates are typically much lower than … [Read more...] about A second mortgage can be a low-cost option for homeowners in need of cash, but they have 2 options to choose from
PUBLISHED: 10:28 25 January 2019 Peter Sharkey The post-Christmas credit card bill could be arriving now for millions of people around the country. Picture: Getty Images Mark Bowden Older homeowners have a solution for credit card quandary, says our financial columnist Peter Sharkey. Unless you bank online, that worryingly dull thud you’ve heard frequently in the porch recently is, quite possibly, written confirmation of your festive season expenditure. If you happen to bank online, the same information is usually accompanied by a jolly ‘ding-dong’, though the detail attached to the incoming email is equally unwelcome. Yes, it’s that time again: mountains of credit card bills have started arriving in homes across the land, each detailing seasonal generosity in a series of glaring, unforgiving statements. Did you really buy that expensive [insert purchase details] item for [insert name] and receive just a bottle of cheap white wine … [Read more...] about How to solve your credit card anxieties
Homeowners using equity release are still taking out loans that could leave them on the hook for tens of thousands of pounds in charges and exit penalties should they ever wish to move home. Releasing cash from property is proving increasingly attractive to older homeowners. Data published by Key, an equity release broker, estimated that 47,081 new plans were taken out during 2017, an increase of 21pc compared with the previous year. Equity release mortgages are taken out on the basis that customers will hold the loan until they die or go into long-term care. However, many customers subsequently find they need to move properties, perhaps to be closer to family in their old age. While some providers... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week Try Premium Access one Premium article per week Register for free … [Read more...] about Sledgehammer exit penalties still lurking in many equity release plans