Equity Release
Equity Release Schemes for Homeowners aged 55 and over...
Looking to raise tax free cash without moving home?
Equity release mortgages allow you to unlock the value in your property and use the cash as you wish without having to move out of your home.
Releasing equity from your home provides a valuable option for people in retirement who are looking to pay off debt or to provide an extra income stream. As with all financial planning it needs to be considered alongside other financial options which is why getting advice is very important.
We work with independent equity release specialists who provide:
- FREE initial consultation for UK Homeowners aged 55 plus
- Full assessment of your circumstances on whether Equity Release is right for you.
- Specialist advice for homeowners on equity release scheme options.
- High level of personal service.
There are two types of equity release mortgage; lifetime mortgages and home reversion schemes:
Lifetime Mortgages
- You take out a loan secured on your home
- You continue to own your home
- You repay the mortgage form the sale of your home – when you die or move into a care home
With a lifetime mortgage the amount that can be borrowed depends on your age (or the age of the youngest applicant, if there are two of you) and the value of your property, up to a maximum of 56% of the property's value. The table below gives an indication of the amount some equity release providers may be prepared to lend.
How much could you release?
Example: Mr Jones is 70 and owns a home worth £180,000. He decides to release some of the equity in his property to supplement his retirement income, fund home improvements and replace his car. With a lifetime mortgage plan, he could raise a maximum of £67,500 (37.5%)
|
Age |
55 |
56 |
57 |
58 |
59 |
|
Max LTV
Available |
21.5% |
22.5% |
23.5% |
24.5% |
25.5% |
|
|
|
Age |
60 |
61 |
62 |
63 |
64 |
|
Max LTV
Available |
26.5% |
27.5% |
28.5% |
29.5% |
30.5% |
|
|
|
Age |
65 |
66 |
67 |
68 |
69 |
|
Max LTV
Available |
31.5% |
33.5% |
34.5% |
35.5% |
36.5% |
|
|
|
|
|
|
|
|
Age |
70 |
71 |
72 |
73 |
74 |
|
Max LTV
Available |
37.5% |
38.5% |
39.5% |
40.5% |
41.5% |
Source: The Exchange 22/11/2007
Home Reversion Schemes
- You sell all or part of your home to a reversion company or individual
- You no longer own your home but continue to live there as a tenant and may have to pay a small amount of rent
- The reversion company or individual sells your home when you die or move into a care home
With equity release schemes, you usually get the money as a lump sum which you can then use as you wish, or some allow you take the cash as a regular 'income'.
If you are interested in finding out more about equity release mortgage plans, our service can help:
... other Mortgage Stories
Lifetime mortgages as from October 2004 are regulated by the Financial Services Authority. A lifetime mortgage is a loan secured on your home. The loan and interest are normally repaid from the proceeds of the sale of your home when you die or move into long term care. With a home reversion plan you sell all or part of your home for cash. However you do not get the full market return for doing so.
The above equity release mortgage detail is for information purposes only as does not constitute financial advice under the Financial Services and Markets Act 2000. When considering any type of equity release product, it is important that you seek independent legal advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.