Home Income Plans in 2022
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Let’s See How Much You Can Release 👇
If You’re Looking for the Perfect Solution to Fund Your Retirement, You Must Consider a Home Income Plan. Homeowners Over 55 Have the Opportunity to Release Equity and Receive a Regular Income. We’ll Show You How.
We’ve got the solution of how you can use your home to have an income for life!
Retirement can be scary in that no matter how hard we might try to plan, having the financial means to get through it, stress-free, can be easier said than done.
However, If you’re a homeowner, there might be a solution.
What You’ll Learn in This Article:
As experts in the field of equity release, we’ve combed the market, reviewed over 220 plans, and done all the latest research on home income plans.
Could a home income plan be the financial solution you’ve been looking for?
Let’s discover now!
What’s a Home Income Plan & How Does It Work?
If you’re retired, and your pension or savings will not suffice, then you should seriously consider a home income plan.
These products work that when you release equity through a lifetime mortgage or a home reversion plan, the money is invested in an annuity1 built into the plan. A lump sum goes in and what comes out is a monthly salary to set you for life.
With a home income plan, the salary you get will depend on 3 things:
- Prevailing annuity rates
- Your gender
- Your age
It’s vital to consult with a professional financial adviser before considering a home income plan as, like all financial products, there are risks involved.
6 Pros of a Home Income Plan
- You’ll receive income from your annuity for as long as you live, no matter what age that is.
- You can request to increase your income annually.
- Home income plan annuities will often give you a more considerable income than what you’d get with a standalone annuity.
- Depending on your circumstances, you may have a lump sum available in addition to your annuity income.
- As you get older, the more income you’ll be eligible to receive.
- The interest on your plan is repaid automatically from the unlocked funds, which means your home value won’t deplete as much as with alternative types of equity release.
5 Cons of a Home Income Plan
- You cannot undo the annuity process once you’ve committed.
- If you were to die early during the terms of your income plan, then your family could lose out. Look out for plans that offer fund protection.
- Downsizing might be a better option to consider as long-term borrowing can work out expensive from an interest perspective.
- Your home income plan might impact your tax position and benefits entitlement.
How Does a Home Income Plan Work?
A home income plan works in that you take out a plan that allows you to release your home’s equity and use the proceeds to purchase an annuity.
The annuity then provides you with a monthly income for life.
Your mortgage payments will then be made from the income; however, the capital value of the loan is then repaid from the sale of your home when you pass away.
Is It a Good Idea to Take Equity Out of Your House?
It can be a good idea to take equity out of your home if you have spoken to your financial adviser and they have suggested equity release to you.
Equity release can help you access much-needed capital to fund your retirement needs.
How Much Equity Can I Borrow From My Home?
You can borrow between 20% and 50% of your home’s market value with a lifetime mortgage.
With all financial products, there are always risks involved. However, what’s fantastic about a home income plan is that you’re guaranteed to have an income for the rest of your life.
Unlike with a lump sum, you’re not at the risk of spending or losing all your money, allowing you to live a stress-free retirement.
Considering a home income plan? Speak to a specialist financial adviser for the right advice. In addition, you should check out these equity release alternatives before making your final decision.
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