Equity Release England

Equity Release England

Equity release England refers to the various equity release schemes available in England and the UK. Equity release England products may be ideal for individuals who seek an extra source of income or capital, as they enable individuals over the age of 55 to secure a loan against the value of their property, in exchange for a cash sum or consistent income. With the help of our specialist advisers, each client is certain to find suitable and competitive equity release England products.

There are two key equity release England products currently on the market; in the form of a lifetime mortgage or a home reversion. The arrangement of both schemes expires when the borrower dies, or has to live in a care institution for the remainder of their days.

Lifetime equity release England mortgages authorise the borrower to repay the mortgage debt at the event of the death of the borrower, or if the borrower permanently moves into a care home. Lifetime equity release England mortgages compose of three further by-products; interest only products, interest roll up products and home income plans. On an interest only scheme, only interest has to be paid off on a monthly basis, with interest varying from month to month.

There are three sub-categories, the first being interest only schemes. Only interest has to be paid on a monthly basis, with interest rates varying each month. The debt of the mortgage is fixed and has to be paid off at the end of the arrangement. Rollover interest equity release England mortgages present the borrower with the opportunity to pay the interest along with the mortgage at the end of the arrangement, yet interest is calculated on a monthly basis and added to the total debt. The borrower must issue monthly mortgage payments (along with interest) to the provider on a home income plan. In return, the borrower is able to obtain an annuity, which provides them with a lifetime income. Interest rates are often fixed on a home income equity release England plan.

There are a number of risks associated with lifetime equity release England mortgages. Firstly, variable interest rates may increase, leading to more interest added onto the total debt, thus reducing the equity remaining in the estate. Furthermore, younger borrowers are more likely to receive a build up in debt due to a longer life expectancy. On the other hand, the borrower still maintains ownership of the property and no monthly mortgage payments are essential. Our expert equity release England advisers are dedicated to search for most affordable and beneficial lifetime equity release-schemes for each client, in relation their personal ambitions and financial circumstances.

A home reversion plan is another equity release England product. The plan holder receives a cash sum, which may be used to their intentions. In return, the provider is permitted to ownership of the borrower’s property. The borrower is also guaranteed lifetime occupancy, as long as the provider has permission to sell the property on the market at the end of the contract. A full home reversion plan gives the provider full ownership to the property, whilst a part home reversion plan enables the borrower to maintain a proportion of the property’s share. In a part home reversion plan, any inheritors of the borrower’s wealth will receive a certain percentage of the proceeds from the sale of the property.

Equity release England products are complex and encompass a series of risks. The potential drawbacks of equity release England mortgages may result in unwanted debts or further penalties, if payments are not issued on time. Our specialist advisers are trained in handling equity release England mortgages and have the ability to find an equity release plan, appropriate for the client’s needs and requirements, by evaluating the client’s financial situation along with their desires.

Seeking an equity release England mortgage? Call our specialist advisers today.

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This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.