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If you are homeowner over the age of 55, you might be looking into releasing equity tied up in your home. Santander equity release is not currently available but there are other providers offering equity release, we offer a service which can put 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.

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Types of equity release

Lifetime mortgage:

With a lifetime mortgage you take out a secured loan on a percentage of your home’s market value. It is not like a normal mortgage however so you are not expected to make monthly repayments on the loan, instead it is paid off along with any interest accumulated on it through the sale of your home after you die or move into a care home.

You remain the owner and can even move to a different property as long as your lender approves. 

There are different types of lifetime mortgages; ‘interest only’ options give you the flexibility to pay off the interest on a monthly basis to keep the amount of debt to a minimum. Others known as ‘roll up’ do not require you to pay anything before the house is sold, however due to interest compounded the amount you will repay could be considerably more than the amount you borrowed. Some providers also offer ‘fixed rate’ lifetime mortgages where you agree with the lender beforehand the exact sum that they will be paid through the eventual sale of the property. 

You may be worried about ‘Negative Equity’ which is what occurs if the amount you owe to the equity release lender becomes greater than the value of your home. If your plan is Equity Release Council registered then it will have a ‘no negative equity’ guarantee, meaning you will never need to pay back more than the amount your home sells for, even if this is less than the amount you originally borrowed.

Home Reversion

In a home reversion scheme you would sell the property to a reversion company for less than its market value for either a lump sum or a series of ad hoc payments. They would also guarantee you the right to continue living in the property; some will charge you a reduced monthly rent others will let you stay there for free. They will not sell the property until you die or move to a care home. 

Things to consider

Equity release is not always the best choice for everyone and it will reduce how much you can leave behind to your beneficiaries. 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 or seeing if there are any state benefits you are eligible for. 

There are many different types of equity release available on the market from various providers, all of which have different terms and conditions. Our equity release service can put you in touch with a specialist advisor who can offer free quotes and advice on the leading UK equity release plans which may help you decide is one of the plans is right for you. 

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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.