Equity release loan UK

Equity release loan UK

Equity release loan UK refers to mortgage plans available to individuals in the UK over the age of 55, who require additional finances. Individuals are able to free up extra finances by securing a loan onto the value of their home. We have a team of specialist advisers who are experts in aiding clients who require an equity release loan UK plan.

An equity release loan UK product enables the borrower to take out a loan, under the circumstance that they repay the full mortgage amount back to the equity release loan UK provider, or permit the provider to obtain a share in their property. Equity release loan UK arrangements typically come to a conclusion in the event of a borrowers death, or if the borrower occupies residency at a care home, due to a decline in health. An equity release loan UK package can either be in the form of a lifetime mortgage or a home reversion plan.

The plan holder often has the choice of three lifetime equity release loan UK products; interest only, interest rollover or home income plans. Interest only equity release loan UK products enable the plan holder to repay the amount borrowed at the termination of the contract, even though interest is still paid on a monthly basis. An interest rollover lifetime equity release loan UK product enables the plan holder the opportunity to pay the mortgage, together with the interest, when the contract expires. Interest is calculated monthly and added to the mortgage. Home income plans necessitate the borrower repaying the mortgage via month to month payments. Interest is often fixed on a home income plan.

Numerous benefits are associated with lifetime mortgages, such as the borrower retaining ownership of their home. This would be a benefit to the beneficiaries and inheritance of the borrower, as equity may remain in the estate. However, if the total mortgage debt surpasses the value of the property, there may be a significant reduction in the equity within the property, meaning the borrowers will benefit from less equity from the arrangement. The money the borrower loans out is likely to be a relatively low proportion of the property, particularly for younger borrowers. Our specialist advisers are able to seek the most efficient equity release loan UK product available to clients.

Rather than the borrower repaying the debt of the mortgage back to the provider, the provider may instead be entitled to a share in the borrower’s property. This is called a home reversion equity release loan UK plan. The arrangement provides the borrower with guaranteed lifetime occupancy at their own residency, as well as a lump sum of cash, in exchange for all or part of the properties share. A full home reversion gives the provider the right to obtain full ownership of the property, whilst a part home reversion enables the borrower to keep hold of a stake in the property. The property is sold subsequent to the termination of the contract and the proceeds are divided between the properties shareholders.

Equity release UK schemes are capable of fulfilling certain individual’s personal and financial ambitions; however the arrangement also makes the individual prone to drawbacks, which may affect their future, as well as the future of their inheritors. The job of our expert advisers entails seeking an appropriate and competitive form of equity release loan UK product for each of our clients, in relation to their needs and requirements.

To find out more about equity release loan UK products, contact our specialist 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.