UK Equity Release Providers

UK Equity Release Providers

UK equity release providers offer a wide range of equity release programmes for individuals in the UK seeking additional finances. Equity release mortgages offered by UK equity release providers serve the purpose of freeing additional finances for mature individuals who are seeking an extra source of income. A loan is secured onto the individual’s property as a means of generating a cash sum, which is available for the individuals use. The role of our team of specialist advisers is to recommend clients the most reliable UK equity release providers, in order to arrange an appropriate and cost-effective form of equity release.

UK equity release providers currently offer two main equity release products which are accessible to the public; these are lifetime mortgages and home reversion plans. Equity release mortgages offered by UK equity release providers are specialised for mature individuals, who are approaching retirement. Individuals must be over the age of 55 if they are to apply for equity release.

UK equity release providers lifetime mortgages work around the principle that the borrower repays the loan borrowed from the provider, either during the term of the arrangement, or subsequent to the termination of the arrangement.  The arrangement is terminated at the event of the borrowers death, or if the borrower takes residence at a care home indefinitely. A lifetime mortgage can be divided into three sub-schemes; interest only schemes, interest rollover schemes, or home reversion plans.

Interest only lifetime mortgages facilitate the borrower making monthly repayments of interest, whilst repaying the bulk of the mortgage at the end of the contract. Interest rollover schemes enable the borrower permission to repay interest along with the mortgage debt, at the end of the agreement. Interest is calculated on a monthly basis and compounded to the total mortgage. Home income plans work differently, as the mortgage is repaid via monthly instalments in addition to interest. An annuity can be obtained by the borrower, ensuring a consistent flow of income for the rest of their life.

Lifetime mortgages are seen as an effective form of equity release offered by UK equity release providers, as there are many benefits included with each package. Firstly, the borrower retains sole ownership of their property, enabling them to make future plans and leave equity within the home. This remaining equity can be inherited by the beneficiaries of the borrower after the borrower’s death. Conversely, the loan the borrower receives is of low proportion compared to the value of their home. Increasing interest rates may go beyond the growth of the property, leaving a small amount of equity to the borrower’s successors. Our expert advisers are certain to recommend each client to UK equity release providers who offer suitable and competitive mortgage plans associated with the client’s financial needs.

A home reversion product enables the borrower to withdraw a lump sum of cash, along with being granted a lifetime occupancy guarantee at their existing home.  As an exchange, the borrower must concede part or full ownership to the provider. The provider is then permitted to sell the property after the contract has ended. On a full home reversion scheme the provider obtains all the proceeds from the property’s sale, whilst a part home reversion scheme enables the beneficiaries of the borrower to benefit from a proportion of the sales proceeds. Typically, only specialist UK equity release providers will offer home reversion equity products.

An individual considering an equity release plan should enhance their financial status. However, one has to assess the costs and benefits of each equity release product before selecting an arrangement. Clients are able to seek help from our team of expert advisers, who will supply each client with thorough information on each of the UK equity release providers and the schemes they have to offer.

Searching for UK equity release providers? Contact our equity release specialist advisers today.

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