Home Income Plans Print E-mail
With a home income plan, equity is released via a lifetime mortgage and is automatically invested into an annuity that is then used to generate an income for life. The interest payments on the mortgage are deducted from the annuity, so the level of interest and amount of annuity income are always known. The income you receive will depend on prevailing annuity rates, your age at the outset and your gender.

Home Income plans do not produce cash benefits, which may be a negative factor for some borrowers, but for those who want additional risk free income, the combination of fixed interest payments and fixed annuity income may be attractive.

The advantage of using a home income plan to generate extra income is that they are better suited to those people who only need a small top up to their income. They are not particularly well suited to those people who require larger sums.

Please contact us for more information on Home Income Plans.