How Pensions And Council Tax Benefits Might Affect A Re-Mortgage
Equity Release schemes are available in many forms, however, there are guidelines for all kinds of equity releases.
As Equity Release is only available to pension age homeowners the majority do not work full time therefore it is their pension and Council tax benefit that has the most effect. You can also search the web to get more information about council allowance in Wiltshire.
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Generally, there are two types of Equity Release; Home Reversion Schemes and Lifetime Mortgage plans.
With Home Reversion Schemes a private reversion company buys your house or a percentage of it from you and you receive an income from that. This is a way of selling your home but continuing to live there for the rest of your life.
A lifetime Mortgage is as it sounds, a Mortgage that is taken out and the cash in your home given to you. You do not pay interest on the loan but it is paid back when you die or you sell the house perhaps if you decide to go into a care home. Schemes vary and financial advice is essential.
As already discussed savings are often taken into account however, you are allowed substantial savings before any type of benefit is affected so it is worth getting advice.