Equity Release Mortgage Rates
Compare Equity Release Mortgage Rates
If you are searching for a suitable deal on an equity release, the mortgage rates on the agreement should always be carefully considered before you commit. The schemes are generally sold to older people, and can be used to provide a useful cash sum, or alternative source of income that can supplement their pension.
Competitively priced equity release quotes are available by clicking on the link on the page.
There are two different types of equity release mortgages that are available to customers. They are:
By taking out a lifetime mortgage, the customer takes out a mortgage with their property used as security for the loan, and a guarantee that it will not be sold until after they have passed on. These mortgages are also portable, meaning that customers may move to a new home if they desire, although they may be expected to pay more.
Home Reversion Plans
Home reversion plans allow customers to sell a portion of their property to the provider in exchange for a lump sum or a source of income. Although may be expected to pay rent on their property depending on the circumstances and the deal agreed.
It is worth repeating that it is important to study the detail of any equity release deal proposed before agreeing to it.
How Does It Work?
Once the agreement has started, the policy holder is free to continue to live in the property for as long as they wish. Once they have either passed on, or can long live there (moved into care), the property will then be sold, and a portion of their assets will go to the provider to cover the cost of their loan.
Although policies may seem highly appealing, it is important to remember that while mortgage rates for equity releases may seem quite reasonable, they can still cost policy holders a great deal of money in the long term, as interest rates can compound rapidly.
If they have any, customers should also take care to consider their relatives before taking out an equity release mortgage, as deductions from their estate could leave beneficiaries with less money after they are gone.
If you think that equity release is the right option for you, it is worth taking a few minutes to click on the link below and get a competitive equity release quote.