Equity Release / Lifetime Mortgage

Equity Release / Lifetime mortgage products are designed for people over 55 to take cash value from their homes without having to move. There is a wide range of Equity Release products which can provide a valuable source of income for some people.

These schemes allow the borrower to stay in their home and benefit from the cash released from the equity of their property until certain events occur, for example, moving into long-term care or death. At this point the lender will be repaid, usually through the sale of the property. If there is any surplus from the sale, it would be passed on to your beneficiaries or estate. If the value of the property is lower than the loan and interest which has accrued over time, it is usual to have agreed a ‘No – Negative- Equity’ guarantee with the lender, so that you or your beneficiaries would not have to pay back any shortfall.

The Lender can give you a lump sum or you can withdraw funds in stages. Interest is paid on this amount on an ongoing basis or the interest can be ‘rolled up’ and paid together when the loan is repaid.

There are different types of Equity Release Schemes, some of which mean ownership or part-ownership of the property passes to the Equity Release provider and others where a cash sum is drawn from a promise to repay the lender on the sale of the property. It is important if you are considering an Equity Release scheme to understand the differences between these scheme types and this is something we can help you with.

An equity release product will reduce the value of your estate, will not be suitable for everyone and may affect your entitlement to state benefits. To understand the features and risks please ask for a personalised illustration.

Lifetime Mortgage