Advice on Equity Release

Advice on Equity Release

Advice on equity release is often essential in choosing the most suitable and affordable deal. Equity release offers individuals, who surpass the age of 55, the opportunity to free extra capital by securing a mortgage against their home.

By obtaining advice on equity release, an individual will acquire knowledge of two distinctive equity release product. Equity release arrangements are ended in the event that the borrower dies, or is moved to a care home indefinitely, due to diminishing health. Among lifetime mortgages, the borrower receives a cash sum in exchange for full repayment of the mortgage debt by the end of the contract at latest. On the other hand, home reversion schemes authorise the borrower to compromise a proportion of their property’s share.

A lifetime mortgage is available in three different forms; interest only, interest roll up and home income plans. An interest only scheme enables the borrower to repay the mortgage back at death, yet interest must be paid monthly to the provider.

An interest roll up scheme permits the borrower to repay the interest along with the mortgage during the termination of the contract, enabling interest to be calculated monthly and roll up to the total debt of the loan.

Home income plans require the borrower to administer monthly payments in order to pay off the mortgage and interest rates. Interest is typically at a fixed rate on a home income plan, yet it may vary on interest only or interest roll up schemes.

Lifetime mortgages encompass a number of advantages, for example, the capital the borrower receives from the equity release may be used to the borrower’s aspirations. Furthermore, the borrower still remains the owner of the property, enabling him/her to make future plans for the property. However, increasing interest rates may consequence in reduced equity, which could have a knock on effect on the children and beneficiaries of the borrower. Our advisers are focused in offering advice on equity release lifetime mortgages to each individual client, whilst suggesting an appropriate and efficient scheme in relation to the client’s financial necessities.

A home reversion plan enables the plan holder to obtain a lump sum of capital, which does not have to be repaid to the provider during the length of the contract. The borrower is also guaranteed lifetime occupancy at their residence. In return, the provider receives a share in the borrower’s property. A full home reversion plan works on the condition that the borrower must give up full ownership of the property to the provider, whilst a part home reversion scheme enables the borrower to keep a percentage of the property’s share.

Arranging an equity release is an important step to the financial future of many mature individuals, that’s why our specialist team provide advice on equity release for all of our clients, ensuring they choose a cost-effective and suitable method in relation to their needs.

To obtain advice on equity release, contact our mortgage advice team today.

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.

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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.