Equity Release Lifetime Mortgages
National Broker
What is Equity Release?
Equity release is a lifetime mortgage that is offset against your property. Usually, it is relevant only if you are a long-time property owner, and you have paid into your mortgage over a long period of time, or if you have paid off your mortgage. You could potentially look at an equity release lifetime mortgage to access money that you have invested into your property. As property value usually increases over time, which in turn will increase the amount of equity within your property, this equity can be used to offset your lifetime mortgage.
A lifetime mortgage essentially means that you take out a mortgage equal to a certain percentage of the value of your home from a lender. You will still have ownership of the property; a lifetime mortgage basically means that a loan is secured against the property equal to a certain percentage.
For example, your property may be valued at £200,000, and you want to secure a 20% loan – which amounts to £40,000 of the current property value of £200,000.
Would you like to learn more about equity release lifetime mortgages? We are on hand to assist and, as an independent mortgage broker, we have access to a comprehensive market, and can thus offer you competitive equity release products.
There are versatile options available such as:
Inheritance protection
You can put aside a future percentage value of your property for Inheritance planning solutions. Although this will limit the amount you can borrow, it will mean that the percentage that you have put aside can be given to those you love and care about without any debt attached to it.
Repayment
There are options available to pay back either interest and loan, or interest only.
Lump sum or Small sums
Once the lifetime mortgage has been granted you can release it in staggered, smaller amounts or take it as one lump sum. The good thing is that interest will only be charged on what you take, rather than the whole amount that you could potentially take.
Which is the right one for you depends on your situation. This is where we come in. Journey Mortgages is here to help and guide you through the different options available, so you get the right product for your needs.
We are here to assist you with advice. We can even look at a rate that you have been currently offered to see if we can provide something more affordable, or in line with your financial goals.
Attention: Late repayments can cause you serious money problems. For help go to moneyhelper.org.uk
FAQ
Equity release is quite simply releasing the built-up equity within your home, in order for you to use it for personal reasons. The mortgage itself is usually paid upon your death or when you move into specialist care facilities.
Yes, absolutely. Lifetime mortgages have the exact same FCA protection, in some instances more, when comparing with term mortgages.
The eligibility criteria vary from provider to provider. It is best to speak to us to better understand your needs in order to advise correctly.
The eligibility criteria vary from provider to provider. It is best to speak to us to better understand your needs in order to advise correctly.
If you move into long-term care, your home would be sold, the proceeds of the sale will first go to re-pay your equity release lender, with the remaining going towards the costs of long-term care.
Yes you can, there will be charges associated, which will depend on the amount of the repayment and the specific terms the provider has.