Over the last few years, much has been said and written about interest rates which are currently at a 300-year low and just how great this can be for borrowers. However, there is another side to this story – and that is the severe effect the interest rate cuts have had on savers. Unfortunately, if you have surplus funds which you want to invest https://www.bestcasinositesonline.com/casino-games/, the effect of successive interest rate cuts has been extremely punitive. Some of those people worst affected are elderly savers who had been relying on a decent return from their capital to supplement their pension income. As a result, they have been forced to look at other methods to sustain them during this fallow period in terms of interest rates.
One possibility, if you are aged fifty-five or over, is to try to release equity from your property unsurprisingly, called an equity release loan. If you own your own home with a good amount of equity then an equity release loan could provide you with either a lump sum or a regular income, depending on the value of your property and the age at which you apply.
Under equity release provisions you do not need to make any repayments to the loan each month, so your income is not adversely affected. The interest rolls up and is repaid along with the capital outstanding once the property is eventually sold. There are limits on how much you can borrow, which depend among other things on your age, but you can use the funds raised for any purpose.
A large number of providers have entered this market in recent years and some have a better reputation than others. Most equity release loans carry a fixed rate of interest and this tends to be the preferred route for many australian casino because it allows the borrower to have extra security, although there are also a number of competitive variable rate deals. Most equity release loans, just like mortgages, will have an arrangement fee as well, but while this should be expected in today’s market, it pays to look out for unexpected charges such as early redemption penalties.
If you are thinking of going down this route, as always, it pays to compare several deals to see which matches your needs best. However, even more importantly, it is very strongly recommended that you seek legal advice before you sign up for an equity release loan. If you make the wrong choice, you could, literally, end up regretting it for the rest of your life.
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