The most common form of equity release is by means of a lifetime mortgage.
In simple terms the interest that would be charged on the mortgage is added to the amount that you borrow and “rolls up”. You make no repayments (in most cases) and what would have been charged as a monthly repayment is simply added to the amount you borrow. This only becomes payable when you either go into long term care or unfortunately pass away!
There are many advantages of this type of equity release and also many disadvantages.
Advantages
- • It is normally possible to transfer this type of mortgage to a new property, should you decide to move.
- • You can repay it at anytime, however there may be early repayment charges.
- • You retain full ownership of your property.
- • You can normally borrow from age 55 compared to 65 with a home reversion plan.
Disadvantages
- • You can normally borrow from age 55 compared to 65 with a home reversion plan.
- • The amount owed could be more than the property is worth.
- • The amount you can borrow is very limited and is age related.
We as a company only use lenders who are SHIP (Safe Home Income Plans) registered. One of the main guarantees that SHIP registered companies agree to offer is a “no negative equity guarantee”, meaning that the amount you owe will never be more than the value of the property that the loan is secured on. They also adhere to other SHIP conditions which can be viewed within their informative brochure they produce here.
If you are interested please give us a call on 01902 847920 or fill in your details on thecontact form and someone will be in touch within 24 hours.
Our first initial consultation will be at no expense to you. Subsequent consultations may incur a charge. Pleaseclick here to see a copy of our fees and charges.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.
Professional introductions
Equity release can provide a solution to many different scenarios. It may not have been something that you or your clients have even thought of as a solution to a problem. So if you are a mortgage broker (who doesn’t advise on Equity Release), an IFA, Solicitor or Accountant, we are always looking for professional introductions. We may be able to provide your clients with the solution they have been looking for.
PleaseClick Here to email us or contact us on 01902847920 or 07740504570