Equity Home Loan Release

Equity Home Loan Release

Equity home loan release offers mature individuals the prospect of amplifying income or capital by drawing out a loan against their property’s worth. Individuals who are qualified to apply for an equity home loan release must be over 55.We do our utmost to get hold of the finest obtainable equity home loan release for our clients, assessing their financial aspirations when finding & then obtaining an equity home loan release.

The provider of the equity home loan release offers capital to the borrower, which can be used as the plan holder intends, or to provide an annuity. By obtaining an annuity, the borrower will have a consistent form of income for the rest of their life. By arranging a lifetime equity home loan release, the equity home loan release provider is entitled to the full repayment of the mortgage, together with interest, when the contract ends. However for a home reversion equity home loan release, the equity home loan release provider may be entitled to shares in the borrower’s property, instead of the mortgage payment. The house is then sold on the market when the contract expires.

The conclusion of the equity home loan release contract occurs when the borrower dies, or the borrower is relocated to a care home for their remaining days. Equity plan release schemes can be formulated into two separate plans, either a lifetime mortgage equity home loan release or a home reversion equity home loan release.

There are three variable lifetime mortgage equity home loan release schemes; interest only, interest rollover or home income plans. Our advisers will supply thorough information on each scheme and weigh up the most suitable lifetime mortgage equity home loan release scheme for each client.

Interest only schemes do not require the borrower to pay the mortgage back to the provider until the contract is terminated. However, this does not rule out the borrower from paying interest rates every month. This scheme slightly varies from a rollover scheme, wherein interest does not have to be repaid monthly. Interest is instead computed monthly and added onto the full mortgage debt. Home income plan schemes entice borrowers with a cash sum, which may be used to purchase an annuity. The borrower uses this annuity to supply monthly payments of the mortgage, on top of fixed interest.

Home reversion equity home loan release differs from lifetime mortgage equity home loan release. There are no monthly bills for the borrower to repay to the provider and the borrower is also guaranteed occupancy in their home for the remainder of their life. In trade, the provider receives a proportion (part home reversion) or the full amount of the property’s share (full home reversion).  A problem with home reversion equity home loan release schemes is that the plan holder merely becomes a tenant of their own residency, enabling the provider to sell the house upon their own death.

Individuals planning an equity plan release arrangement ought to be aware that these schemes often result in unnecessary debts or the sale of the property after the death of the plan holder, affecting the borrower’s eventual legacy and inheritance. Our expert team of advisers are able to aid each client on any concerns they have in regards to equity home loan release schemes, providing specialist advice on your available options.

Considering an equity home loan release? Call one of our specialist advisers 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.