Equity Release

Equity release UK has a number of advantages, equity release options are really extremely useful and have thus found widespread acceptance, especially among senior citizens. An oft quoted line goes like tomorrow never knows what it does not know too soon, so in order to be prepared for tomorrow it is advisable that we keep track of the present, and equity release is a very efficient way of doing precisely that. Equity release options as has already been mentioned have a number of advantages. First and foremost it provides the borrower with a guaranteed cash lump sum or a steady source of income which is definitely advantageous, especially for people in their old age, for whom it becomes very hard to make ends meet on a meagre pension. The cash that is provided is completely exempted from tax and the steady source of income that is provided, alternatively called an annuity, has the added advantage of being index linked for the rest of the life of the individual. The amount of inheritance tax that is obtained from the estate can also be reduced. Equity release is thus extremely advantageous because it provides a number of tax exemptions and other benefits. There is an important concept called No Negative Equity Guarantee, abbreviated to NNEG which provides the added incentive of protecting the borrower, in case of a crash in the market related to the housing sector.

Equity release advice is thus required for clear understanding of the principles of equity release. In the event of interest rates depreciating, borrowers also have the advantage of refinancing their existing mortgages taking help of other providers at a much lower price. Thus the equity release schemes are definitely extremely flexible and are also extremely borrower friendly. Thus equity release principles have found widespread acceptance among the masses.