3 Home Reversion Repays Mortgage & Funds Home Improvements By The Bower Team / In Home Improvement Bower, 2009 Equity Release Award winners, recently helped a retired divorcee in her late sixties to increase her disposable income by arranging for her to repay her mortgage and bank loan via a Home Reversion Plan. The homeowner, whose property was valued at £160,000, was able to release £60,000. This was used to pay off her £30,000 mortgage and a £9,000 bank loan, thus increasing her disposable monthly income by almost £250. An emergency savings reserve was also created providing peace of mind that money was there in case of an unexpected emergency. SHIP Guarantees After providing independent financial advice, the specialist adviser at Bower researched the whole of the equity release market and selected a Home Reversion Plan from a Safe Home Income Plans (SHIP) registered provider. SHIP offers safeguards to those releasing equity from their properties, including the guarantee that the homeowner can stay in their property for life, and that they will never owe more than it is worth. ‘You were very thorough and I felt confident in you’ This particular customer, Mrs King of Harlow in Essex, was also able to afford new double glazing and now enjoys regular holidays. She said: ‘Thank you very much for helping me decide which equity release to choose; you were very thorough and I felt confident in you, also there was no pressure.’ A Home Reversion Plan involves selling a part of a property in exchange for a lump sum or monthly income. If you are not worried about leaving your whole property as an inheritance, it can be the ideal choice, but you must of course take independent advice and examine all the alternatives before proceeding. Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration. Bower is an FCA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information email [email protected] or call 0800 4118668.