Mortgage Release Equity

Mortgage Release Equity

Mortgage release equity products are equity release solutions sought by individuals seeking to find long term financial stability for their own needs. Mortgage release equity products may be sought by individuals for a number of reasons and to pursue a number of projects, with the complexity of the decision often requiring a financial adviser and specialist mortgage release equity adviser in order for the right financial solution to be obtained.

Mortgage release equity deals can only be acquired by individuals over the age of 55, on either a lifetime mortgage or home reversion mortgage release equity product. Lifetime mortgages will enable the borrower to withdraw a mortgage with the mortgagor only paying the required sum from the mortgage on death. There are a number of lifetime mortgage packages available for individuals varying in what they achieve, with not all lifetime mortgage release equity suitable for all clients. Home reversion mortgage release equity products involve the current homeowner receiving a lump sum of money in order to sell their property, becoming a tenant for no fee until their death. Once the plan holder dies, the home reversion company will be entitled to the property to sell, or in part reversion the certain percentage of the property’s selling proceeds.

As can be seen, the mortgage release equity products available for individuals are significant financial options sought by individuals and should be given serious consideration. The undertaking of a mortgage release equity option for elder individuals is a lifetime contract which is expensive to break and will affect family and inheritance plans. Suitable deals can be found for the right client, with the advice of a mortgage release equity specialist acquired.

There are a number of advantages and disadvantages associated with a number of the available mortgage release equity products on the market. Although all equity release products enable the mortgagor to stay in their property until their death or moving into a permanent residential care home, disadvantages such as the potential removal of state benefits and the large debts which can be accrued should be considered by all applicants seeking to secure their long term financial future not just for themselves, but for members of their family as well.

Equity release mortgage products may be a suitable way for individuals to free up extra finances to help assist with plans such as a gap year style holiday, create immediate finances to help with the cost of living, pay for healthcare costs or to assist other members of their family. However, alternative financial solutions should be thought through. It may be more beneficial for individuals to look to move property and scale down to receive extra funds, to seek funds from the Home Improvement Trust if looking to mortgage release equity to free funds, or perhaps a suitable solution would be to seek financial support through a friend or family member on an interest free basis. Equity release should only be sought as an option if these options are not viable to the mortgagor.

The distrust and naivety attached to equity release products has diminished in recent years, with a number of good and fair deals available for clients with the right research having been achieved. Equity release products are today not allowed to see the client move into negative equity with the no negative equity guarantee attached by the Safe Home Income Plans scheme set up at the beginning of the 21st century, leaving clients safe in the knowledge that their children will not have to pay for their equity release scheme if the interest accrued does succeed the value of the property involved. All clients should seek ethical advice in order to obtain the most suitable and affordable mortgage release equity product on the market, benefiting the client’s long term financial health.

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