There is only one subject for me to write about this week and that’s “Equity Release”. At Mortgage Required, we get all sorts of enquiries, but never before have we had so many enquires of this nature. It seems that so many retired people are “asset rich / penny poor” and they are looking for a way to get their hands on some of their equity.
Equity Release is way for pensioners to release the money tied up in your home, without having to sell it or move out of it. You can either borrow against the value of your home which is known as a Lifetime Mortgage, or sell part or all of it in exchange for a lump sum, which is known as Home Reversion.
Back in the day, Equity-Release was a dirty word, with visions of loan shark types charging exorbitant rates of interest then throwing vulnerable pensioners out on to the streets, whilst simultaneously nicking their properties. Well not any more. First of all there has been a whole host of sensible (in my opinion), regulation. The main worry people have is losing their home. The amount of money you borrow plus any rolled-up interest, can never go above the value of your property - when it is sold at the end of your plan - due to the No Negative Equity Guarantee safeguard upheld by the “Equity Release Council.” Borrowers will also continue benefiting from the rises in property value in the years to come.
It’s interesting to hear the different reasons why people do Equity Release. The usual 2 are to gift a deposit for sons / daughters property purchase or just to have the money in cash in their accounts to enhance their lifestyle, take a holiday, buy some treats and not have to worry if something goes wrong. In fact my parents did Equity Release 12 years ago, and their retirement has been enriched enormously with endless trips to Fuengirola and the peace of mind having money in the bank brought them.
There are all sorts of schemes available, some where you make payments every month and some where you don’t. There fixed rates, variable rates and interest only deals available, so there really is something for everyone!
For more information contact us or speak to a mortgage adviser on 01628 507477.
Recent posts
Virgin Money and Hive Energy introduce new "green" mortgage product called Retrofit Boost Mortgage with the aim to help homeowners improve the energy efficiency of their home by offering cashback between £3,000 and £15,000
According to recent findings by LV= where 4,000 UK adults were surveyed, mortgage holders said that were likely to consider equity release to free up some money to take care of expenditures in later life.
A mortgage market rate war
9 Aug 2024
Following the recent decision by the Bank of England’s Monetary Policy Committee to cut the base rate from 5.25% to 5% (the first reduction seen in over four years), we have seen lots of lenders reducing their rates to remain competitive.
August in Bloom: Gardening Tips
7 Aug 2024
Steps for decluttering your home
6 Aug 2024
Did you know that removing clutter within your home can reduce stress, help you be more productive, and improve your mood and self-esteem? Check out our steps to get you started.
61% UK homeowners are looking at equity release
22 Jul 2024
The Equity Release Council has revealed that three in five UK homeowners are interested in releasing money from their property later in life.
Prices for UK houses drop in July 2024
15 Jul 2024
The average seller’s asking price dropped by 0.4% in July, a bigger drop than we have typically seen.
We explore the differences between Millennials and Gen Z and what both generations ideally want from a new home.
More information
Trusted by
