Financial
INTEREST-ONLY MORTGAGE AND HOME INCOME PLANS OF EQUITY RELEASE IN UK
In the Interest-only mortgage scheme of the equity release UK, the owner of the house gets a lump sum based on the calculations of equity release calculator, but he is required to pay the interest of the money he is lent, every month. The lump sum is spent by the owner of the house till his death. The lender gets his capital after the death of the house owner through the sale of the house.
Next equity release plan of UK is the Home income plans. In this plan a mortgage is taken against the home and the money is used to buy annuity which guarantees monthly income. Mortgage payments are deducted from the monthly income but the capital lump sum is returned to the lender only after the house owner’s death, by selling the property.