Lifetime mortgages ~ Equity release

You’ve worked hard for your house over the years so isn’t it time to get your house working for you? Equity release is an increasingly popular option with an average growth rate of 7% per year since 2016.

A lifetime mortgage or equity release plan allows you to access the value you’ve built up in your home and use it – however you want to.

There are many questions and myths around Equity Release Mortgages so please take some time to read the information here and the Mythbusters or if you’re not sure about anything, complete the contact form – Many of these misunderstandings are based on old products which are no longer available. The new lifetime mortgage products offer freedom and flexibility and are suitable for many more people than the old generation of products suited.

How does equity release work?

Equity release is a great option for the over 55’s who have equity locked away in their property. Equity release or a lifetime mortgage is essentially a mortgage – that is a loan secured against your property. The difference between an equity release plan and a regular mortgage is that a lifetime mortgage is designed to help get funds back out of your home as opposed to helping with the purchase of a home.

Depending on your requirements you can choose to take a lump sum or several smaller amounts or even a combination of both.

With options to roll up the interest or make payments, it’s easy to make a lifetime mortgage fit your lifestyle.

There’s a lot of flexibility so depending on your situation you can arrange a small drawdown to pay for the holiday of a lifetime or make property improvements or aim for the maximum possible to supplement your retirement income or even release some of your inheritance early.

Who is a lifetime mortgage for?

If you are aged over 55 and own your own home.

Many lenders have a minimum value for your property – we can work with values from £70,000

Our flexible lenders will allow you to draw as little as £10,000 from your property.

The maximum you can withdraw will depend on the value of your property, your age and the type of product you’d prefer.

Getting started with a lifetime mortgage

We’d always prefer to arrange a face to face consultation with one of our expert advisors but if that’s not possible then a video call is a great option.

Please give our hotline a call on 0808 164 2364 to arrange an appointment or complete the form below and we’ll contact you.

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Equity Release Mythbuster!

There is a lot of misunderstanding around Equity Release here are four of the most common myths – busted!

I’ll end up owing more than the house is worth

All our lenders are approved by the Equity Release Council and have a no-negative-equity guarantee meaning you will never owe more than your house is worth when it’s sold. If the situation did arise where the debt was more than the sale value of the house, the lender would write off the extra balance.
Of course if you sell your property and there is remaining equity, you’ll get the extra cash – just as you’d expect!

I’ll never be able to move home again

Equity release products are much more flexible than they used to be, sometimes being used to move home or repay an existing mortgage to reduce monthly payments.

The amount I owe will rocket.

The interest rates on Equity Release products are much more competitive than a few years ago so if you opt for a product where the interest is rolled into the loan it’s not going up as fast as you might think.
You also have the option, if your income is sufficient to pay some or all of the interest each month to stop the debt increasing.

I will never be able to reduce my loan

Some of the equity release products we offer allow partial repayments of the loan without any fees or charges. If you think that’s an option you’ll need then speak to your advisor about it.

I might lose my home if interest rates increase

You’ll still own your home, not the lender and the safeguards like the no-negative-equity guarantee mean that the lender will not be able to sell your home from under you!

Equity Release is unregulated and not safe

All mortgages including equity release are regulated by the Financial Conduct Authority and advisors need an additional qualification before they can offer them. The lenders are also signed up to the Equity Release Council which has it’s own standards of conduct.

Equity Release is the last resort

With the regulation and range of products available in the market, if this was ever true it certainly is not now. The majority of homeowners now see their property as being their main source of wealth and an integral part of their retirement plans.

mortgage or equity release consultation
Contact on 00808 164 2364 to arrange your free consultation.