How the Double-Dip Recession Will Impact the Elderly, Report Bower Retirement Services
ONGAR, England, May 29, 2012 /PRNewswire/ --
Bower Retirement Services offers advice on how the elderly can ride out the double-dip recession
The UK is officially back in recession. This is bad news for everyone, but particularly savers. A new round of quantitative easing is likely and this will further subdue interest rates, eroding the value of savings and pensions in real terms. This puts great pressure on people nearing retirement age, particularly those with mortgages. Smaller pensions and savings will mean retirement dreams remain dreams and homeowners with mortgages face loosing their homes. But there is a way to prevent all this: unlocking the collective £3 trillion the UK has tied up in property.
Bower Retirement Services is an award-winning equity release advice service that puts homeowners in touch with the UK's best equity release providers. It offers impartial advice, a free equity release calculator and information on each and every equity release scheme available to homeowners.
There are four equity release products to choose from, which a homeowner will pick will dependent on their current financial situation and the purpose of the equity release.
Lump sum mortgages are best suited to people looking to minimise monthly outgoings. With this product, homeowners pay the interest and the remaining mortgage value when they vacate the property. There are no monthly repayments.
A lifetime mortgage with flexible cash release, also known as a drawdown mortgage, works in the same manner as the above with the addition of regular cash withdrawals. Interest is charged on these withdrawals but is only paid upon sale of the property. This is most suitable for retirees looking to supplement their state pension.
Interest only lifetime mortgages are for people looking for a lump sum to pay off debts or to go on the trip of a lifetime. Interest is paid each month, but a percentage of the property's value is borrowed and awarded as a lump sum. When the property is sold the original capital borrowed must be repaid. This product requires credit checks to make sure the property owner can repay the interest each month.
Home reversion plans are for people looking to release large sums of money from their home but don't want to move to a smaller property. The property or a percentage of it is sold to the equity release firm providing a lump sum. People can stay in their property but pay monthly rent to the equity release firm. The balance will be cleared when the property is sold.
About Bower Retirement Services
Bower Retirement Services are an award-winning specialist UK equity release advice company. Fully regulated and authorised by the Financial Services Authority (FSA) to provide advice on equity release products from the whole market. Winners at the 2009 and 2011 Equity Release Awards, with Bower customers are guaranteed to receive the very best equity release advice.
Contact: Paul McDermott, Essex Technology & Innovation Centre, The Gables, Fyfield Road, Ongar, CM5 0GA ; T: 0800-411-8668
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