Home Equity Release Mortgage UK

Home Equity Release Mortgage UK

Home equity release mortgage UK refers to the obtainable mortgage options sought by individuals over the age of 55, who intend to gain extra finances to support their financial circumstances. There are many home equity release mortgage UK schemes that are available to individuals, although selecting the right scheme can often be a complex process. Our team of specialist advisers take pride in obtaining suitable and cost-effective home equity release mortgage UK products for each and every client.

Even though there are a number of different home equity release mortgage UK products that exist, most products are integrated into one of the following two groups: lifetime mortgage and home reversion. Both forms of home equity release mortgage UK mortgages give the mortgager the right to retain residency within their property until death or being moved in to residential care without being charged.

A lifetime UK equity release mortgage provides the borrower with the opportunity to take out a mortgage which only permits the provider of the mortgage to seek the full payment once the individual dies or is taken into a full time care home within the UK. There are thee separate lifetime mortgages available in the UK, each with altering terms and conditions; interest only, interest roll up, or home income plans.

Interest only schemes do not require the borrower to pay the full loan until the end of the arrangement, although interest rates are paid monthly and can be variable. Interest rollover enable the borrower to live in the property until death without paying any costs, although the interest calculated each month builds up to increase the mortgage debt. For younger equity release seekers, this product may not be suitable as interest will have more years to rollover with a higher life expectancy. Home income plans enable the borrower to use the mortgage to purchase an annuity and supply themselves with a regular income for life. The home income plan necessitates the borrower making monthly repayments of the mortgage, alongside interest.

Along with lifetime mortgages, home reversion plans may too be a practical solution for a number of individuals looking to generate extra funds. A home reversion plan enables the borrower to obtain a lump sum from a specialist home equity release mortgage UK provider, in exchange for conceding ownership of their property to the borrower. The arrangement also guarantees the borrower lifetime occupancy at the property. Full home reversions authorise the provider to full ownership of the borrower’s property, whilst part home reversion enables both the provider and the borrower to retain a proportion of the properties share. Many individuals should look to other methods of formulating an extra income before turning to a home equity release mortgage UK.

Home equity release mortgage UK products may be overwhelming for many individuals due to the complexity associated with each product. All potential equity release mortgagers should reflect cautiously on the risks and limitations associated with each home equity release mortgage UK, before choosing the product they desire. . The advice of our specialist adviser can be essential in ensuring each client is placed on the correct home equity release mortgage UK.

If you require additional information in regards to a home equity release mortgage UK, contact our financial advisers today.

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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.