Remortgage Equity Release

Remortgage and release equity from your property

equity release

Equity release may allow you to unleash some of the value in your property without having to move or remortgage. Equity release is an option primarily for people who have paid their mortgage and who are reaching the age of retirement. If you are a person in this situation, you may find that you are property rich, but cash poor.


There are two types of equity release:


Home reversion plan
In this type of equity release plan, you usually sell a percentage of your property to your financial provider and receive a lump sum or a regular income in return. The potential advantages of this type of equity release remortgage strategy are:

  • You will be free to enjoy your retirement
  • You can continue to enjoy living in your property
  • You may have enough money to maintain a good standard of living
  • you can get either a lump sum or regular income


However, there are soem potential disadvantages in taking out this type of equity release plan:

  • Your property is reduced in value
  • You are usually not permitted to move homes
  • The payment you receive from your financial provider may not accurately reflect the current market value of your property.

 

Lifetime mortgage
In this type of equity release plan you can take out a loan against the value of your property and receive in return a percentage of your property’s worth in the form of a lump sum. The advantages in this type of equity release plan are:

  • You will be free to enjoy your retirement
  • You can continue to enjoy living in your property
  • You may have enough money to maintain a good standard of living
  • You may be permitted to move home


Despite the advantages detailed above, there are disadvantages which are detailed below:

  • Your property is reduced in value
  • The payment you receive from your financial provider may not accurately reflect the current market value of your property
  • You may be expected to pay fees (arrangement fees, legal fees, valuation fees).


You may wish to remortgage your equity release in order to receive a better level of payment. Click on the link below to see an equity release quote:

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.