Halifax Home Retirement Plan Options

Many people are confused by the Halifax Home Retirement Plan

. In essence, this program provides interest only mortgages for those who qualify and can financially help people who feel their retirement income may be an adequate to meet future needs. It is a combination of roll-up equity relief and residential mortgage in one package.

It's important for those considering this option that they understand qualifying is determined by income which is similar to residential mortgage plus interest that is normally paid on a monthly basis. It is also similar to equity release in that there is no termination date and is balance is repaid eventually on the sale of the property at the time of the owner's death or should they be moved to a long-term care facility.

This allows those who qualify the opportunity to raise tax free cash with interest repayment in a direct deposit method. What this does is allow the Halifax plan to maintain exactly the same balance over time. The balance is then paid off at the time of death or when an individual moves into a long-term care facility. This is different than equity release that requires no monthly payments and, therefore, increases the amount owed over time which ultimately reduces benefits to survivors.

There are respected criteria established in order to qualify for this type of plan. One must be 65 or older, but there are exceptions to this age limit in the case of injury, ill-health, or redundancy. It's important to remember as well that the maximum that can be borrowed are 75% of the property's value. This too can be affected by income level which is the basis for the borrower's limit.

Halifax strives to ensure that mortgages are affordable. To determine one's limit and eligibility, a breakdown of income, monthly payments to loans and credit cards, credit score, and the loan amount expected is needed. To calculate affordability one need merely contact an Equity Release Supermarket advisor who can complete the calculations.

Once the application has been an accepted an approved, this interest only mortgage can be disbursed as a single lump sum. This eliminates the need or a drawdown facility which is usually associated with roll-up equity relief plans. Additional funds can be made available at a future time provided underwriting can be secured.

Although called many things, the Halifax plan described here is the official title of the product mentioned. It offers flexible interest rates and must be released through an intermediary from equity release. It is classified as a lifetime mortgage by the Financial Services Authority. These have different regulations than regular mortgages and special advisors must evaluate qualifications before an individual can be recommended for the program.

The Halifax Home Retirement Plan is a lifetime mortgage designed to help those who have assets, but lack income. Repayment occurs when the property is sold usually after the borrower has passed on or moved into a care facility. To understand the risk and features of this program it is always wise to seek independent financial and legal advice.

by: Lance Thorington

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