Category Archives: Finance

Cash Advance Loans Online-Guidelines 

There is no telling when a sudden problem can come up in life. More often than not, these issues are financial in nature and can be frightening. Unexpected expenses like medical bills or an unforeseen situation like a sudden firing from a job can happen when you least expect them to. Due to this, there might come a time when you need quick access to money. When this happens, you can do yourself a favor by considering a cash advance online. Utilizing this type of loan, you will be able to get the money that you need right away so that you can breathe easy. Here are a few of the many benefits of taking out cash advance loans.

In and Out

When an emergency comes up, you probably do not have a lot of time on your side. If you are in a rush to find money, you want to make sure that you are going to get what you need in a timely manner. The beauty of a payday loan is that you are able to apply in mere minutes. You will find out, quite soon, if you are approved for the loan or not. On top of that, you will get the money that you are looking for almost immediately. This means that you will have access to the cash that you need so that you can take care of whatever problem has come up in life. Have a look at Cash Advance Loans Online for more info on this.

The Credit Factor

For the most part, loans can be difficult to obtain if you have bad credit. It seems that your credit score follows you around throughout your life. This can be a burden when you need money fast, but are sure that a bank is going to reject you because of your history of poor credit. With a cash advance online, you are more likely to be accepted for your loan. The main reason for this is because the loan must be paid back within a few short amount of time. Typically, you will be expected to pay back your payday loan within a few weeks of initially taking it out. Due to this, you are more likely to be approved because you are committed to a very specific payback schedule.

Incredibly Safe

Applying for a loan online can often seem a bit daunting. When you are putting your personal information out there on the internet, it almost feels like you are exposing yourself. Luckily, cash advance loans are incredibly safe and trustworthy. Lenders make sure to treat their clients with the utmost respect, making all information private and putting extra security measures in place to ward off anyone who might try to get at your protected data. There is no need to worry about applying online because it is as safe and confidential as you would like it to be. There are many problems that can come up quite suddenly and blindside you in life. If you need access to money in a fast manner, but you are worried that you will not be able to get a bank loan, then you can do yourself a favor by exploring a cash advance online. Look into how payday loans can get you what you need in a fair way and get ready to get ahead.

Equity Release – A Quick Guide to the Different Schemes

 

Equity Release is the term used to describe a financial solution that is available in the UK for those who are 55 or over. The term itself covers the financial sector, with Equity Release Schemes, Lifetime Mortgages and Home Reversion Plans being the actual products that are available.read this article

The first thing to note is that equity release schemes, equity release mortgages and lifetime mortgage are all one in the same thing, with the terms being used interchangeably. Each of these products refers to a financial product that releases money for homeowners aged 55 or over. The money is released from the equity in their property, with the amount being based on the property value and the age of the youngest applicant. The amount that can be released starts at around 21% for those aged 55, and increases at approximately 1% per annum up to a maximum of 56% at age 90. The maximum amount available for drawdown will change between providers.

Essentially all equity release schemes operate by releasing a lump sum that can be spent however you wish. Now this may be for home improvements, to supplement ongoing pension income and state benefits, for the holiday of a lifetime, or simply to assist your loved ones such as children or grandchildren.

The options available when releasing equity are either as a maximum lump sum as per the previous percentages, or as a minimum lump sum around £10,000 with the balance being made available as an equity release drawdown facility. Equity release drawdown is usually set to a minimum release of between £2000 and £2500.

After you have released funds, interest is rolled up against the borrowing, generally at a fixed rate of interest for life. This means that you know from outset exactly how the debt will increase over time. For example a lump sum of £10,000 at a fixed rate of 7% will grow to £19672 after 10 years, and £38697 after 20 years once the rolled up interest is added to the original borrowing. Compare this to a lump sum of say £30,000 which would grow to £59,000 over 10 years at a fixed rate of 7%, and the benefit of equity release drawdown option is clear to see.

It is worth noting that different providers offer the option to protect a portion of the property for those wishing to protect an amount for inheritance, i.e. protecting 50% of the property value. This certainly provides peace of mind, but will reduce the maximum amount that can be released from the property as the aforementioned percentages would be based on the reduced amount of the unprotected portion of the property.

Equity Release Lifetime Mortgages really can provide a solution for those that are asset rich but cash poor, and can make the difference between just getting by, or actually living and enjoying retirement and old age.

They’re not for everyone though, and obtaining advice from one of the many equity release advisers in the market is to be recommended. This will help provide you with an appreciation of both the pros and cons associated with Equity Release. For example: –

 

Pros

You can remain living in your property for the rest of your life

There are no monthly payments to be made

The debt is repaid only when the last surviving applicant passes away, the property is sold, or a move into long term care.

No negative equity guarantees ensure you can never owe more than the property is worth

Cons

Releasing equity can affect entitlements to means tested benefits.

As interest rolls up over time, the reduction in equity could make it difficult to move home, or downsize.

As the interest rolls up the amount that can be left to your beneficiaries reduces.

Home Reversion Plans

Unlike Lifetime Mortgages where you retain complete ownership of the property, Home Reversion Schemes work on the basis that you can sell anything from 20% to 100% of your property to the Home Reversion Company, with any amount not sold, being held in trust. Home Reversion is only a small part of the Equity Release market, as many people view them as being poor value. With other equity release schemes you benefit from any capital growth in the property as you retain ownership, whereas once you have sold a percentage of your home to a reversion company, any increase in the value of that portion belongs to them alone.