Equity Release Information Centre

Equity Release Information Centre

An equity release information centre offers individuals, seeking an equity release mortgage plan, the opportunity to receive precise information on the various forms of equity release on the market, along with suggestions on which equity release arrangement would be most suited to their own requirements. By contacting our equity release information centre, our specialist advisers ensure a beneficial and cost-efficient plan is sought for each client.

An individual seeking equity release typically hopes to obtain a form of income or capital, which can be used to contribute to their personal plans. Individuals must be over the age of 55 to be eligible for equity release. Individuals need to be aware of the two main formats equity release mortgages are presented by an equity release information centre; either lifetime mortgages or home reversions.

Lifetime mortgages consist of further sub-products, in the form of interest only schemes, interest rollover schemes and home income plans.

An equity release information centre will inform you interest only products which consent to the plan holder who repays the total loan at the end of the agreement. The borrower however, must issue monthly payments of interest to the provider. All equity release agreements are ended when the borrower either dies, or occupies residency at a care home for the rest of their life.

An interest rollover scheme is similar to an interest only scheme; however the borrower the plan holder has permission to pay the interest back along with the mortgage, during the event of the plan holder’s death. Interest is calculated every month and added to the mortgage debt.

Home income plans work differently; the borrower must make monthly repayments of the mortgage, along with interest. Interest is usually on a fixed rate for this scheme, and the borrower may arrange an annuity plan, enabling them to receive a lifetime income.

Advantages associated with lifetime mortgages include the borrower’s right to remain the sole owner of the property, enabling them to leave equity within the estate for their inheritors to benefit from. Nevertheless, rising interest rates may surpass the property’s price growth, resulting in a significant decline in real equity, meaning the borrowers inheritance will not benefit as much from the arrangement. The money the borrower obtains will also be a relatively low proportion of the property, in particular for younger borrowers. By consulting our equity release information centre, we will propose an appropriate lifetime mortgage scheme to potential lifetime mortgage equity release clients, weighing up the costs and benefits in relation to the clients personal and financial needs.

An alternative scheme to the lifetime mortgage plan is known as home reversions. This is where the plan holder receives a sum of cash that does not have to be repaid, in exchange for the provider obtaining a share in the borrower’s property. The agreement may allow the provider to take all shares within the property (full home reversion) or just a proportion of the shares (part home reversion). Home reversion equity mortgage release plans include a lifetime guarantee for the borrower to remain a tenant at the property.

Not all individuals are suitable for an equity release applicants, due to the danger of the potential drawbacks consequent in financial difficulties for some clients. That’s why our equity release information centre has a team of trained specialist advisers who are experienced in dealing with all forms of equity release. Our advisers are able to compare the financial situation of the client to the client’s requirements, in order to differentiate between each equity release arrangement and locate a suitable scheme, which is beneficial to the needs of the client.

If you seek more information on equity release, get in touch with our equity release information centre today.

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