Equity Release Mortgage Advice

 

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

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

If you’re over 55 years of age and have considerable equity in your home, you may be wondering; ‘can I use equity release to buy a second home?’.

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.

Purchasing a property and then letting it out to tenants is a great way to earn additional income and the more properties you own, the more you can earn.

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.

If you can’t come to us we can quickly set up a video or phone appointment.

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

With most Equity Release mortgages it’s likely that the loan is increasing in size as interest on money you have borrowed on the mortgage accrues. However, this doesn’t mean that you can’t port your mortgage to another, perhaps smaller, property.

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.

Equity release is a way to release money by way of a loan secured on your home or through the sale of all or part of your home, subject to certain rights to remain in occupation.

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.

The Equity Release Council is a not-for-profit organisation and is the recognised industry body for the equity release mortgage sector.

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.

Equity release records broken as unprecedented Q4 activity sees 2017 lending reach £3.06bn with annual growth at a 15-year high.

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

Equity release is a way for pensioners to release money by way of a loan secured on your home or through the sale of all or part of your home.

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.

Equity release is a term given to the mechanism by which a homeowner can raise either a cash lump sum or a regular periodic income in return for either selling or mortgaging all or part of their home. 

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 Building Society Association (BSA) announced that they are reviewing age limits on mortgages as more customers demand longer mortgage terms in order to keep monthly costs down. Older homebuyers may soon find it easier to get a mortgage as many lenders currently insist mortgages are repaid prior to the borower’s planned retirement dates.

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!

I think anyone with an interest only mortgage without a repayment vehicle, will by now have a letter from their lender, warning them to make arrangements to repay their capital.
Nowadays, banks and building societies are reluctant to give mortgages to customers unless they pay capital as well as interest, but back in the day, interest only mortgages were as common as muck!

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.

 
 
 
 

Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be no fee for Mortgage Advice. There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, but we estimate it to be £399.

Mortgage Required Ltd, Finance House, 5 Bath Road, Maidenhead, SL6 4AQ is authorised and regulated by the Financial Conduct Authority reference 573718 at www.fca.org.uk.

The Financial Ombudsman Service is an agency for arbitrating on unresolved complaints between regulated firms and their clients. More detail can be found on their website: www.financial-ombudsman.org.uk