What is Equity Release?
Equity Release is a mortgage product that is designed to allow individuals over the age of 55 to release money from the property they live in without having to make any monthly repayments.
There are two types of equity release products, which are;
- Lifetime Mortgages
- Home Reversion Plans
A Lifetime mortgage is the most common product across the market.
How does a Lifetime mortgage work?
A Lifetime Mortgage is a type of mortgage which does not require monthly repayments, although, with some plans, rather than rolling up the interest, you can opt to make monthly repayments if you wish. When you take out a lifetime mortgage you retain ownership of your home and interest on the loan is rolled-up. The loan and the rolled-up interest is repaid by your estate when you either die or move into long term care. If you are a couple, the repayment will be made when the last remaining person living in the home either dies or moves into care. This means that both you and your partner are free to live in your home for the rest of your lives.
Is Equity Release Safe?
Like every financial product available on the market, some may be right for some may not. This is why you need to speak to a fully qualified independent Financial Advisor.
If you are already are in the process of taking out an equity release product then you will no doubt be looking for a solicitor to help with the legal work.
How can I find an Equity Release Advisor?
Trawling the internet for an Equity release specialists can be an overwhelming exercise. Below we have put together a list of Equity Release advisors and Solicitors that can help the legal side. However you can also go to the Equity Release Council, who have a dedicated list of Equity Release professions who are Vetted and up to the task.
Find Equity Release Advisors and Solicitors
Did you know the Nationwide offer Later life Mortgages?
They have a great range of later-life products and they also provide excellent advice for lending for the over 55’s.