If you have been considering unlocking some of the capital tied up in your home to cover expenses for something or to just help you better enjoy your retirement, a Stonehaven Equity Release programme (Now known as Retirement Advantage) might be a suitable option for you.
Some of the benefits of Retirement Advantage lifetime mortgages include:
- A no negative equity guarantee
- A guaranteed cash reserve facility
- Guaranteed protected equity
- Choice of regular ‘income’ payments or lump sum options
What is a lifetime mortgage?
Like its traditional counterpart a lifetime mortgage is a loan secured against your home. Unlike a traditional mortgage however you do not need to worry about making monthly interest payments (unless you elect to.) Instead you make an agreement with the lender that when you die or move into care the loan and any interest owed on it repaid through the sale of your home.
Up until this point the home remains your property however you will be required to keep it in good condition.
Any funds you raise through equity release are tax free and can be used for whatever you like whether it’s to do the things you have always dreamed off or to just make yourself more financially comfortably in your retirement.
If the value of your home falls to less than the amount you borrowed, known as negative equity then you do not have to worry about leaving any costs to your beneficiaries as there is a ‘no negative equity guarantee’ this means your estate will not be charged any more than your home is sold for, even if it is for less than you borrowed.
How much equity could you release?
The amount you can borrow is dependent on the market value of your house. Using a release calculator you can get a rough estimate of how much you might be entitled to however when a lender is calculating the exact amount they will take into consideration other factors such as; Whether you want a joint or single mortgage, Your age, and how much you would like to leave behind in your will.
Are there costs involved?
The specific costs involved vary by each plan. Some lenders will require you to pay an arrangement fee upfront where as others will waive it for you initially and just take that amount into consideration when they calculate your interest rates. Some plans will require an additional administration fee which is one of the reasons why you should consider all of your options before committing to a plan.
You will in most cases need to pay your solicitor a legal fee.
Is a Retirement Advantage lifetime mortgage right for you?
To decide if an equity release mortgage is the right way to release equity from your home it is important to consider all of your options. There are several equity release products available on the market, Retirement Advantage equity release is just one of many.
Therefore speaking to an intermediary can be a really useful way to help you decide which option would best suit your needs. It may even be that you decide that a home reversion plan is more suitable for you than a lifetime mortgage. To find out more about the different types of equity release and which one is right for you, 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.