EQUITY RELEASE OR LIFETIME MORTGAGES

Equity release is a way for older homeowners to access some of the money (the equity) that is within the value of their home.

If you are over the age of 55 and a homeowner, you are probably eligible to take out an equity release plan. The money you release is yours to spend on what you want. Popular choices are home improvements, repaying debts, helping children on to the property ladder or simply enjoying later life.

Equity released from your home will be secured against it.

A lifetime mortgage is the most common type of equity release scheme and is usually secured against your main residence. This is a mortgage designed to run for the lifetime of the homeowner, in which the property remains completely in your name.

• Unlike traditional mortgages, there are typically no month-to-month repayments to make, but most plans now have the facility to make voluntary repayments to help control the balance, if needed. There are many flexible options which can be included with lifetime mortgages, which provide the facility to: Make repayments either on an ad-hoc or regular basis via voluntary or monthly repayments which can help control the future mortgage balance.

• Protect an element of equity by including an Inheritance Protection Guarantee, which safeguards a percentage of your estate to pass onto your loved ones.

• Take future cash withdrawals on a drawdown lifetime mortgage basis, following the creation of an initial cash reserve facility

We know that this sounds overly complicated so please do not worry, just contact us for more information.