Equity release schemes can open up a financial gateway for over 55's in helping to release equity.
Simply Mortgage solutions can advise & source lifetime mortgages from the whole of the equity release UK market, It should be noted that these plans can differ considerably, hence due diligence should be taken to ensure all equity release schemes are discussed in finer detail.
Which Equity Release Schemes Are Best?
Having dealt with this specialist area no single equity release scheme can be the best & suit everyone. People in, or near to retirement have different circumstances & requirements. Again, here at Simply Mortgage Solutions we cannot stress enough to speak to our specialist advisers. With over 100 different equity release schemes currently available, the choice can be daunting without proper knowledge.
An overview of equity release schemes
With the variety of UK equity release schemes available in the market, how do you know which plan to choose?
The following information on various Lifetime mortgage plans, will provide you with a better understanding of the range of mortgages available.
Lifetime mortgages
A lifetime mortgage is the most popular type of equity release scheme. It is a loan which is secured against the value of your home & exchanged for a tax free lump sum or income. The lifetime mortgage charges interest at a fixed rate. This is not repaid monthly, but added to the mortgage. The balance, including compound interest is finally repaid in full when the property is sold.
Drawdown Lifetime mortgages
A drawdown lifetime mortgage is a type of lifetime mortgage, but with added flexibility. These schemes provide you with a cash reserve facility. You can take any amount from this initially, with the remainder being held in the reserve facility for future withdrawal, whenever needed. The advantage being that you only get charged interest on the amount withdrawn.
Interest only Lifetime mortgages
Anyone over the age of 55 is eligible for an interest only lifetime mortgage. As long as monthly payments of interest are maintained, then the mortgage balance with remain exactly the same throughout the term of the loan. With an interest rate that is fixed for life, you have the assurance of knowing that monthly repayments will never change. Therefore, should mainstream mortgage rates rise, the interest only mortgage is protected from such increases
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As you can see, there are many different types of lifetime mortgages available. We always recommend anyone considering releasing equity from their home to speak to our Specialist advisers. Should you wish to benefit from our free initial consultation and discuss the various lifetime mortgages.
'This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration’. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice’.