Equity Release

If you are homeowner aged over 55 you might have been looking into how you can access equity from your home without having to move by using an equity release plan. More 2 Life is a lender who offers different types of equity release plan known as ‘Lifetime Mortgages’.

We offer a service which puts you in touch with an equity release specialist who will offer you friendly and helpful advice and can give you no obligation equity release quotes.

Click here for Quotes and Advice »

How lifetime mortgages work

With a lifetime mortgage you don’t have to sell your home to release some of its value. Instead a lender like More 2 Life will loan you a percentage of your home’s market value. This loan is secured against your home like other types of mortgages but instead of you making monthly repayments on the loan you agree that the amount will be repaid in full, along with any accumulated interest on it, through the sale of your home when you either die or move into a care home.

As it is a loan this means that you will maintain ownership of your property and you can usually move to a different one as loan as the lender approves its suitability. Any money left over after the loan has been repaid can be passed on to your beneficiaries.

How much can be borrowed through a lifetime mortgage?

Most lenders will generally let you borrow up to 56% of your home’s market value, subject to a professional valuation of it. However when calculating the specific amount you can borrow and the interest rates of your loan most lenders will take into consideration other factors such as;

  • Whether it is a joint or single plan
  • Your age
  • Whether you would like to protect a percentage of the property value as an inheritance

Different kinds of lifetime mortgage

There are three different kinds of lifetime mortgage you can consider:

  • Roll up – this kind of mortgage is repaid in full with any interest on it through the sale of your home. You should bear in mind as this plan features compound interest, the amount owed to the lender through the sale of your home can increase quite quickly.
  • Interest only – This option gives you the flexibility to make monthly repayments on the interest that gathers on your loan. The original sum borrowed is still repaid through the sale of the property.
  • Fixed rate – This plan type does not incur any interest rates. Instead when you are applying for it you agree with the lender on the amount they will get in return through the eventual sale of your home.

Home reversion

When looking at lifetime mortgages you may also want to consider a home reversion plan. Home reversion is different from a lifetime mortgage; instead of taking a loan secured against your home’s value you sell your home to a reversion company for less than its market value. In return the reversion company will pay you a lump sum or give you regular ‘income’ payments, they will also guarantee you the right to continue living in your home, and they will not sell it until you die or move into a care home.

Some reversion plans will charge you a monthly rent however at a reduced rate; others will let you stay in your home for free.

Alternatives

When looking into equity release you should consider if there are other ways you can generate funds; you could downsize or move to a more affordable area, you could also consider taking in a lodger. It may also be worth seeing if you are entitled to any benefits you are not currently in receipt of.

Find out more

Equity release is usually a lifetime commitment that will reduce how much you can leave behind to your beneficiaries. When deciding if equity release is suitable for you and your family it is important to consider all of your options due to the range of different products on the market, More 2 Life equity release is just one of many. To find out more about the different types of equity release simply click on the link and fill in the quick form and an equity release specialist will get back to you with free, no obligation quotes and advice.

Click here for Quotes and 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. Equity release may affect your entitlement to state benefits and will reduce the value of your estate. It may involve a lifetime mortgage or home reversion plan. All content set out in this website is provided for information only and should not be considered as advice. It is strongly recommended that you seek advice of a qualified, independent financial advisor before making any decisions to take out an equity release product.