You’ll no doubt be familiar with mortgages and remortgaging, but Equity Release is often a grey area for many. In the past Equity Release has received some bad press, but as many retirees consider releasing funds to sustain the lifestyle they’ve already become accustomed too, the perception of Equity Release is starting to change.
We’ve tried to answer the main concerns and questions we’ve been asked since providing Equity Release products for our clients. If having read through the list below, you still have questions, please contact us for more information.
1.What is a lifetime mortgage?
It’s a mortgage for life, allowing homeowners over the age of 55 to release the equity in their homes. You can make monthly interest payments or allow the interest to roll up to be repaid on death. The money you release is tax free and can be used for whatever purpose you like.
2. Can I protect my inheritance for my family?
Yes, there are now protected equity guarantees allowing you to leave a chosen percentage of your estate to your family. Lots of people are now gifting during their lifetime as they feel it’s better to “give with a warm hand than a cold one”.
3. Will I still own my own home?
Yes, with a Lifetime Mortgage you will retain full ownership of your property.
4. Will I be able to move home?
Yes you can. Providers guarantee that customers have the right to move their plan to another suitable property without any financial penalty. You may have to repay part of the lifetime mortgage loan if you move to a cheaper property. If you move in to rented accommodation then the loan will have to be repaid.
5. Will I lose my home?
No, you cannot lose your home with a lifetime mortgage. All customers can remain in their property for life, or until they move in to long-term care. In the case of a joint policy, then this applies to the last surviving borrower.
6. Does my home qualify?
Your home will qualify for a Lifetime Mortgage providing it is of standard construction.
7. Is equity release regulated?
Equity Release is authorised and regulated by the Financial Services Authority (FSA).
All plans offered by Lifetime Finance are regulated by The Equity Release Council (formally SHIP). This is an independent organisation that specialises in equity release and sets strict standards to protect customers. In addition to the sense in taking professional advice a customer must be given independent legal advice ensuring that all of the benefits and limitations of the product will be explained, together with any obligations that you might be under.
Call us now on 01204 884545 for more information on Equity Release Plans