Equity release

The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.

Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.

With UK inflation remaining at 2.2% which is slightly above the Bank of England’s 2% target, the decision was made on Thursday 19^th September to keep the base rate at 5%.

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.

Are you looking to extend your property? There are many benefits to adding an extension to your existing home, here are a few. 

To help anyone who is interested in equity release, below we have answered three of the most commonly asked questions.

You may have heard of the term ‘equity release’ and simply put, this is the process of releasing some of the money that is tied up in your home.

Generally referred to as ‘the base rate’, when it falls it is usually (but not always) an indication that lending rates generally will also fall.

Lifetime mortgages are becoming more popular as a generation of people with all or most of their lifetime wealth tied up in their homes.

A Home Reversion Plan allows you to access all or part of the value of your property whilst, at the same time, retaining the right to remain in your property, rent free, for the remainder of your life.

In simple terms, Equity Release lending enables you to release and use some of the equity tied up in your home whilst still allowing you to remain living there during your lifetime.

A lifetime mortgage is a loan made to older applicants which is secured on their home. You have the option not to repay it on a monthly basis but, instead, the interest can be rolled-up over the remainder of your life.

We are delighted to be able to announce that Mortgage Required has joined the Equity Release Council.

The Insurance giant Prudential recently carried out research which found that 25% of 2017s retirees will retire in debt. This is at its highest level for seven years.

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.

The Financial Conduct Authority (FCA) have strict rules about consolidating debts into client’s mortgages on the basis that if you default on your car loan, the finance company will come and reposes your car, but default on your mortgage and you may of course lose your home!

Back in the day, “Shared Equity” was considered a little down market, perhaps where one might go as a step up from renting – a helping hand onto the housing ladder.