All posts tagged Long Term Care

Aviva is one equity release company providing retired or near retirement homeowners a chance to improve their cash poor situation. If you have entered retirement and find you are spending your retirement pension too fast there are only a couple of things you can do. You can adjust your lifestyle, downsize, or find a way to supplement your income. Equity release products such as the Aviva Lump Sum Max plan is a lifetime mortgage. To find out how this product can help you there are necessary tools like the Aviva equity release calculator available to you.

How Aviva Works
Aviva provides certain products for individuals over the age of 55. However, their products are announced on sites like Equity Release Supermarket and through a brokerage firm. If you go directly to their website, select the product shown, you will be sent to a brokerage firm that is not independent. They do not offer independent equity release advice. It is an agreement they have made with Aviva. It also means the product mentioned on Aviva’s website and through this tied sales team is not as competitive as Aviva products you can find on Equity Release Supermarket. You can use the safety net of a company you recognise and trust by choosing Aviva, but you do need to be aware the product may be a poorer deal for your beneficiaries on the long term.

Lifetime Mortgages
Lifetime mortgages are a loan for retired individuals because you make no payment towards the principle amount. There are only a few products which are interest only, where you do make an interest payment each month, but the product is not repaid in full until the end of your life. The Max Lump Sum plan from Aviva is a straightforward lifetime mortgage in that you make no repayments and pay no interest until the end. When you die or need long term care your loan will need to be repaid, often through the sale of your home. This is where it can become difficult for your beneficiaries. The sale of the home has to cover the capital sum plus any interest that has accrued. The more interest that accrues the less that is left over.

When you have a non-competitive product this means the interest rate is not in line with other equity release products. It could be significantly higher than competitive products found through independent brokers.

Independent Brokers
An independent broker is going to look for the best product for you. They will find the lowest interest rate for the maximum amount of value possible. You get to decide the best deal. Sometimes you may have to go for a higher interest rate to unlock the maximum amount you need.

An equity release calculator can be used to determine the maximum amount to be released such as 30% at age 65 versus 40% at 75. You can change items in the calculator to fit the competitive products on the market; however, Aviva equity release calculator does not allow for this. The Aviva tool is specific to the Aviva Lump Sum Max Plan. It will not provide results for any other plan even other Aviva products sold on independent sites. It limits your knowledge of available options. An independent calculator would not do this.

The Products on the Market
Aviva, Pure Retirement, and Just Retirement offer some of the equity release lifetime mortgage products on the market right now. At age 65 all offer 30% of the home value in a loan to value percentage based on age and home value. The percentage allows for the accrual of interest while keeping the loan low enough that it should not hit negative equity.

The older you are the more you can release which is why at age 75 you could get 41% from Aviva and 42% from Pure Retirement. Pure Retirement also offers free valuation, the larger cash back option, and no application fee if the loan is for more than £45,000.

Overall, you want to make certain you are working with an independent tool to get the best information possible. It may turn out for your needs and situation Aviva is the perfect company to go with through the brokerage firm. On the other hand you may find the Aviva equity release calculator results are not apropos for your situation and thus you need to shop around more. Using independent tools you can save time in your research.

With the people around the world still feeling the impact of the global crisis in the financial industry, many are trying to establish a financial solution to their current recession problems. These problems are not limited to the working age population as many older people have seen the real world value of their pension compromised by quantitative easing and inflation. Even those who have made adequate pension provisions may find that their pension falls short of meeting their needs. This is the main reason why equity release schemes have experienced a resurgence in popularity over the last few years.

What are Equity Release Schemes?

Equity release schemes are specially designed financial products for the over fifty-fives age group. They allow home owners aged between fifty-five and ninety-five to release the equity tied up in their home without the inconvenience and upset of moving home. The funds released are provided tax free and can be used for any purpose. Many people use equity release to supplement their pension income, make large purchases such as a holiday home or assist their children or grandchildren financially.

The global recession has made it very difficult for younger people to take their first steps on the property ladder, but with equity release, older relatives can leverage the equity in their home to finance a deposit for a first time buyer without placing their home at risk. This can be done because equity release schemes are intended as a lifetime mortgage or loan. The amount borrowed does not require monthly repayments as the interest is accrued and then compounded on the balance each year. The total loan balance is only due to be repaid when the home owner passes away or moves into a long term care facility. At this stage the property is sold, the balance of the loan settled and any remaining money from the sale is distributed to the beneficiaries of the estate.

How Much Can be Borrowed with Equity Release Schemes?

The amount of money which can be borrowed with equity release schemes depends on a number of factors. These include the age and gender of the applicant, the value of the property and the balance of any outstanding finance secured on the home. In some cases the health of the applicant is also considered. This is to assess how much equity is available in the home and if it meets the loan to value ratio specified by the lender. Additionally, the personal information is used to estimate the approximate lifespan of the applicant which would determine the duration of the loan.

Generally, applicants who are older will be able to release a greater percentage of equity compared to someone younger. However, women have a statistical likelihood of living longer than men, so their gender can affect the amount which can be borrowed. Additionally, some providers offer impaired life equity release schemes which consider those with an impaired life expectancy, for example someone with a terminal condition or long term illness. These cases will generally be offered a greater percentage of equity release based on the estimation that the lifetime mortgage will run for a shorter period of time.

The general rule of thumb for an equity release scheme is that you should be able to release thirty to fifty per cent of the value of your home. However, this is dependent on your circumstances and the type of property. There are a number of equity release calculators which are readily available online. These offer free and confidential examples of the amount of release which would be available in your specific circumstances. Many of these calculators will even allow you to compare the details of specific equity release schemes to determine which represents the best possible deal for your requirements and circumstances.

In order to obtain a full view of the equity release schemes which would be applicable for your circumstances, it is recommended that you utilise a number of different equity release calculators. This will provide a wider range of products to be assessed to increase your chances of finding the best possible deal. This will enable you to assess the maximum amount of release possible, compare interest rates and examine the financial implications of choosing a specific product.

If you are interested in exploring equity release schemes and are unsure if they would meet your requirements, an equity release calculator can provide a great starting point. However, before making any final decisions about the feasibility of specific equity release schemes, you should consult professional specialist advice. This will ensure that you are confident in your decision and assured of the best possible deal.

As a pensioner, it is not always possible to meet your daily needs with the little pension amount that you receive on a monthly basis. With an equity release plan, you might just be able to secure your retired life; however, you will need to have ownership of a property. There are many different types of equity release schemes which will make it possible for you to release money from all or a portion of your property.

The great thing about equity release plans is that you do not have to leave your home even if you sell it to an equity release provider. Eventually, when you die or move into long term care, your property will be sold to repay the equity release provider.

In order to choose the right equity release plan or the right equity release provider, you will need to compare equity release mortgages. The internet is filled with many different useful websites such as who make it possible for you to compare and analyze the different equity release plans and providers so that you can chose the plan and provider that are best suited to meet your needs and requirements. They can be contacted on 0800 678 5169

These websites are free, interactive and can be of great assistance when conducting your own research on equity release. These websites make it possible for you to easily compare equity release plans and providers through the use of equity release calculators. Equity release calculators make it possible for you to instantly determine how much money you can borrow from a specific provider. Equity release calculators are the perfect way to compare equity release plans and providers.

When comparing equity release providers, you should make sure that you check the reliability and the credibility of each company as well as the total amount of years that it has been in business. One of the most important factors to focus on when comparing equity release providers is the interest rate that they offer. Based on its reliability, credibility, and experience, you will be able to choose an equity release provider that offers the highest returns from releasing equity from your property.