Equity Release – Lifetime Mortgages

Home Equity Release Equity Release – Lifetime Mortgages
Equity Release Advisor Birmingham

At RM Mortgage Solutions Ltd we can refer you to an equity release specialist who will be able to provide advice and discuss your options.

Equity Release Lifetime mortgages are proving to be an increasingly popular way for people to raise cash to fund their retirement years.  A lifetime mortgage allows someone the freedom to free up cash from their home to spend as and how they wish, with typically no monthly repayments to meet.

Interest accrues on the loan at a fixed rate each month.  The loan plus the accumulated interest are repaid in full when the property is sold usually upon your (and your partners) death, or entry into long term care.

Equity Release Lifetime Mortgage – Advantages

  • Usually there is no requirement to make monthly repayments.
  • The ownership of your home remains yours.
  • Your estate will still benefit from an increase in your property’s value.
  • The possibility to redeem the mortgage.
  • The cash lump sum is yours to spend as you wish.
  • Some lifetime mortgages allow you to guarantee an inheritance.
  • Lenders who are members of the Equity Release Council provide a “no-negative equity” promise which guarantees that the amount payable on your mortgage will never exceed the value of your home.  This ensures that your family will not owe the lender anything when you pass away.

Equity Release Lifetime Mortgage – Disadvantages

  • The inheritance you can leave to your family will be reduced.
  • An early repayment charge could be payable if you pay off your mortgage early.
  • Your entitlement to state benefits may be affected.  However, you can discuss with an equity release specialist whether or not your benefits would be impacted.
  • Local authority grant entitlement e.g. for essential home improvements could be affected.

Further information about a lifetime mortgage can be given to you over the phone or within the comfort of your own home if you live in or around the Birmingham area.  Your advisor will be able to tell you which type of equity release scheme will work best for your individual circumstances, or whether it is in fact right for you at all.

Call us today for an equity release appointment.

If you are thinking about equity release, please read Is equity release right for you? carefully.

A lifetime mortgage is a loan secured against your home.  To understand the features and risks, always ask for a personalised illustration.