Equity Release Lenders

Equity Release Lenders

Equity release lenders are specialist companies who organise equity release mortgages arrangements for mature individuals. Individuals who seek an equity release deal are effectively freeing up extra finances via the worth of their property. Our unit of specialist advisers aspire to obtain the best form of equity release for each of our clients from the most suitable equity release lenders, dependant on the client’s financial requirements and personal needs.

Equity release lenders usually receive their stake in the arrangement at the end of the contract. The contract ends if the borrower dies, or moves into a care institution indefinitely, due to poor health. Equity release lenders offer clients with two alternative equity release options; lifetime mortgages and home reversions.

If a lifetime mortgage is agreed upon, the borrower is expected to repay the amount borrowed back to the equity release lender. Lifetime mortgages exist in three alternative arrangements; interest only schemes, interest rollover schemes and home income plans.

A cash lump sum is provided to the borrower by equity release lenders on an interest only scheme. Interest is repaid to equity release lenders every month, yet the borrower does not repay the mortgage until the end of the agreement.

The loan received by the borrower in interest only lifetime mortgages is a cash lump sum. Interest on the loan is paid each month, either at a variable or fixed rate. Homeowners who receive a fixed income may struggle to meet their payment dates if interest rates are variable and interest rates rise.

 Interest rollover schemes vary from interest only schemes, as the borrower does not have to issue any monthly payment of interest throughout the term of the contract. Instead, the interest payment is coupled along with the mortgage payment, subsequent to the death of the borrower. Interest is determined on a monthly basis and added to the total debt.

Home income plans require monthly mortgage payments, accompanied with interest from the borrower. The borrower may use the newly generated cash to purchase an annuity, fixing a consistent income for life. This annuity may be used to supply the mortgage and interest payments associated with the product.

Lifetime mortgages are beneficial as the borrower does not lose ownership of the property, enabling them to make future plans on behalf of their home. Furthermore, equity may be left in the property after the homeowner dies, which the beneficiaries of the borrower may be able to reap from. However, variable interest rates may cause an influx in interest, resulting in reduced equity remaining in the borrower’s estate. However, there is no negative guarantee equity installed into the agreement offered by the equity release lenders, this means the provider ensures the total debt will not exceed the property growth by the end of the agreement.

Home reversions enable the current homeowner to receive a non-repayable lump sum of money, in exchange for ownership of the borrower’s property. Borrowers are also offered lifetime occupancy at the residency, as a part of the arrangement. Equity release lenders are entitled to full ownership of the home (full home reversion) or a proportion of the property’s share (part home reversion). The property is sold after the contract has been ended and equity release lenders profit from the sale. If the arrangement was a part home reversion, the borrower or his beneficiaries are entitled to a proportion of the sale.

Equity release lenders have a range of products on offer to potential mortgagers, however an individual must be aware of the risks that are accompanied with each equity release scheme, offered by equity release lenders and whether the benefits outweigh these risks. Our specialist advisers are trained in evaluating these risks and benefits in order to suggest a suitable and cost-effective plan for each client interested in an equity release arrangement.

Deciding on whether to arrange a mortgage with equity release lenders? Contact out advisers now.


EQUITY RELEASE LENDERS

 

Equity release lenders are specialist companies who organise equity release mortgages arrangements for mature individuals. Individuals who seek an equity release deal are effectively freeing up extra finances via the worth of their property. Our unit of specialist advisers aspire to obtain the best form of equity release for each of our clients from the most suitable equity release lenders, dependant on the client’s financial requirements and personal needs.

 

Equity release lenders usually receive their stake in the arrangement at the end of the contract. The contract ends if the borrower dies, or moves into a care institution indefinitely, due to poor health. Equity release lenders offer clients with two alternative equity release options; lifetime mortgages and home reversions.

 

If a lifetime mortgage is agreed upon, the borrower is expected to repay the amount borrowed back to the equity release lender. Lifetime mortgages exist in three alternative arrangements; interest only schemes, interest rollover schemes and home income plans.

 

A cash lump sum is provided to the borrower by equity release lenders on an interest only scheme. Interest is repaid to equity release lenders every month, yet the borrower does not repay the mortgage until the end of the agreement.

 

The loan received by the borrower in interest only lifetime mortgages is a cash lump sum. Interest on the loan is paid each month, either at a variable or fixed rate. Homeowners who receive a fixed income may struggle to meet their payment dates if interest rates are variable and interest rates rise.

 

 Interest rollover schemes vary from interest only schemes, as the borrower does not have to issue any monthly payment of interest throughout the term of the contract. Instead, the interest payment is coupled along with the mortgage payment, subsequent to the death of the borrower. Interest is determined on a monthly basis and added to the total debt.

 

Home income plans require monthly mortgage payments, accompanied with interest from the borrower. The borrower may use the newly generated cash to purchase an annuity, fixing a consistent income for life. This annuity may be used to supply the mortgage and interest payments associated with the product.

 

Lifetime mortgages are beneficial as the borrower does not lose ownership of the property, enabling them to make future plans on behalf of their home. Furthermore, equity may be left in the property after the homeowner dies, which the beneficiaries of the borrower may be able to reap from. However, variable interest rates may cause an influx in interest, resulting in reduced equity remaining in the borrower’s estate. However, there is no negative guarantee equity installed into the agreement offered by the equity release lenders, this means the provider ensures the total debt will not exceed the property growth by the end of the agreement.

 

Home reversions enable the current homeowner to receive a non-repayable lump sum of money, in exchange for ownership of the borrower’s property. Borrowers are also offered lifetime occupancy at the residency, as a part of the arrangement. Equity release lenders are entitled to full ownership of the home (full home reversion) or a proportion of the property’s share (part home reversion). The property is sold after the contract has been ended and equity release lenders profit from the sale. If the arrangement was a part home reversion, the borrower or his beneficiaries are entitled to a proportion of the sale.

 

Equity release lenders have a range of products on offer to potential mortgagers, however an individual must be aware of the risks that are accompanied with each equity release scheme, offered by equity release lenders and whether the benefits outweigh these risks. Our specialist advisers are trained in evaluating these risks and benefits in order to suggest a suitable and cost-effective plan for each client interested in an equity release arrangement.

 

Deciding on whether to arrange a mortgage with equity release lenders? Contact out advisers now.

 

How to get in touch

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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.