EQUITY RELEASE & RETIREMENT MORTGAGES
Lifetime and Retirement mortgages for the over 55's don't always require releasing equity, that is why we take into consideration all options before using Equity Release products.
With the retirement and later life lending arena changing all the time, there are many hybrid products that can be used instead of equity release, such as interest only retirement mortgages.
Equity Release is a type of Lifetime Mortgage, which can be used to either enhance your retirement and release capital from your property, or help you to move home or downsize.
Interest rates are usually fixed. How these are paid back depends on your plan. Optionally, repayment could be rolled up, which will ensure accrued interest is not due prior to the point of passing away (or following move into long-term care). Alternatively you can choose to pay interest on a monthly, quarterly or annual basis.
We have access the whole market and are independent and will obtain not only the best rates for you but will look to tailor the product whilst taking into consideration your personal circumstances.
There are certain conditions you must meet before being able to take out equity release.
For a lifetime mortgage you (or both of you, if you’re borrowing jointly) need to be at least 55 years old.
For a home reversion plan you (or both of you, if you’re taking out a plan jointly) need to be at least 65 years old.
You must own property in the UK, which must be your main residence.
Your property must be in reasonable condition and over a certain value, and there may also be restrictions on the type of property accepted.
If you have a mortgage or secured loan on your property you may still qualify for equity release, but it will depend on the value of your home and the amount outstanding on the existing mortgage or loan. You'll have to pay off any outstanding mortgages or loans secured against your home at the same time as taking equity release.
Equity release may not be suitable if you have dependants living with you. Any dependants should take separate legal advice. If they wish to remain living with you in the property, they may need to sign a waiver confirming that they understand they don’t have the right to reside there if you die or move into permanent residential care.