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Equity Release Loans

Are you a UK Homeowner looking for Equity Release Loans?

Alphabet Money could help you turn the equity you hold in your property into cash for you to use today.

Equity released arrangements come in 3 different types;

The most common type of equity release is to secure an equity release loan. You agree an interest rate on the loan and repay that over an agreed period. You can take out interest only mortgages or repayment mortgages depending on which product best fits your needs.  

A Home income plan allows (normally elderly) home owners to utilise the capital value of the home to their advantage by generating an income from it whilst remaining in the home. A lender will provide a loan of up to 80% of the property value and this loan is used to purchase an annuity (an annuity is the payment of a regular income by a life company to an individual in exchange for a lump sum either for life or shorter period). The annuity payments are used to pay interest on the loan and provided 90% of the loan is invested in this way tax relief can be claimed (The remaining 10% of the loan can usually be taken in cash with no restrictions). This type of plan is typically for people over 75 years of age.

Home reversionplans or home income plans allow you to sell part or all of your property in exchange for a tax free lump sum or regular monthly income and a guaranteed lifetime tenancy.