Home income Plans

What are home income plans?

Home income plans are designed to provide a monthly income by releasing some of the equity held in a property. The plan is a type of lifetime mortgage where a lump sum is used to purchase an annuity. The annuity pays out a monthly amount, part of which is used to pay the interest on the amount borrowed. The remainder is used to provide a monthly income.

FSA advice in relation to home income plans

As with all financial arrangements it is vital that you fully understand how a home income plan could affect you. The FSA suggests that before you consider taking out a home income plan that you consult an independent financial adviser. Our fully independent financial advisers have a great deal of experience of working with clients who are seeking benefits from home income plans and can advise if this is the best option for you. As we are not tied to any specific lender, we have the ability to search the entire that market to recommend the home income plan that best fits your needs. If you are interested in finding out more about home income plans, please contact us.

Tax and home income plans

The sums received as a result of home income plans is tax free. Home income plans can contribute to cutting inheritance tax bills. In 2009 / 10, inheritance tax thresholds apply to everything remaining in the estate valued in excess of £325,000. Importantly, the figure includes the value of your home. Home income plans are often utilised to mitigate the amount of this inheritance tax.

Why choose a home income plan?

Home income plans are a way to access the equity that is locked in your home. The income that you receive as a result can be used as you wish. It may be that you may wish to improve your home, help family members onto the property ladder or to simply supplement your income. Our financial advisers can discuss the reasons for you to consider home income plans in a free consultation. To request your free consultation to discuss your options please >click here.