Equity Release

on 14th January 2017

 

    • Lump sum of tax-free money.
    • Continue to live in your own home
    • Maintain 100% home ownership
    • Make no monthly payments
    • Spend the cash as you wish
    • Ability to move home in th e future
    • Low rates available to fix for life

Equity release schemes allow people to access cash into their retirement using their property as security.   Equity release is a range of different products that allows you extract cash out of your property by taking out a loan on the property.  These products are available to people age 55 or over and you can take the funds in a combination of lump sums, several smaller amounts or as a combination of both.

You can release equity (cash) from your property for almost any reason.  Whether you have a pension shortfall, had some unexpected expenses or if you just wish to release cash to enjoy your retirement.

Types of Equity Release

Lump Sum

This is a very basic scheme where the lifetime mortgage provider offers a lump sum loan.  The interest is usually rolled up over the term and you don’t have to make any payments towards the loan.  You still keep complete ownership of the property like all of the schemes Retirement Mortgage Solutions offer.

Drawdown

This scheme allows flexibility and can save you large amounts of interest in the long term.  You take an initial lump sum to suit your circumstances, you then have the facility to drawdown further funds as and when required.  You only pay interest on the funds that you drawdown rather than a lump sum scheme where you pay interest on the large lump sum you would initially receive.

Enhanced Lifetime Mortgages  

Some providers can offer you a larger loan amount if you have certain health conditions or lifestyle choices.  This scheme can allow you to release more equity from your property than a conventional lifetime mortgage.

Interest Payments

If you are concerned about the interest rolling up over the term you can choose to make interest payments to retain as much as the property value as possible.  These plans can either have regular monthly payments or you can choose to make lump sum overpayments as and when you feel suitable.  These plans can be provided on a lump sum, drawdown or enhanced lifetime mortgage.

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Home reversion plans and lifetime mortgages are complex products. To understand the features and risks, ask for a personalised illustration.