Is an Equity Release Lifetime Mortgage for you?
An equity release lifetime mortgage is proving to be an ideal solution for many UK homeowners over 55 who feel that their pension funds or current savings aren’t stretching enough for them to lead the life they want. That’s because an equity release lifetime mortgage allows you to unlock the value tied up in your home and you can use the cash as you wish without having to make monthly repayments or move out of your home. As with all financial planning it needs to be considered carefully alongside other financial options, which is why it’s important to get the very best advice from a trusted equity release lifetime mortgage provider.
How an equity release lifetime mortgage works
The cash you borrow from your home will be paid back when the house is eventually sold. You may continue to own and live in the house for as long as you live. In most cases, you can move home during the loan period if you decide as long as the new property meets certain conditions, which your equity release lifetime mortgage provider will be able to advice you about at the time.
After your equity release lifetime mortgage loan is approved you will receive a tax-free lump sum and your heirs will pay less in heritance tax.
It’s always best to go to a trusted independent provider as there are many factors which need to be considered such as the impact the loan may have on your state benefits and the inheritance your family will receive.
So is it right for me?
Perhaps the most important point is that taking out an equity release lifetime mortgage is a lifelong commitment because it is designed to be repaid only when you die or if you eventually move into long-term care. Therefore, if you are searching for a more short-term deal then there may be better ways of raising money.
You should always think about any other options available to you before committing to an equity release lifetime mortgage. For example, downsizing your home or using any savings you have could work better for you. It is always best to go over every viable option, but having said that, there are clearly many great benefits to releasing equity from your home.
There are three main types of plans available including lifetime mortgage, drawdown mortgage and home reversion plan. So if you’re 55 or over, you’ll be aware how fast life passes you by – an equity release lifetime mortgage could be the answer you’ve been looking for.
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I arranged a call to discuss, but did not qualify as i did not have enough equity in my home.
I am not necessarily looking for cash release but a lifelong mortgage. I owe £175K and the house has just been valued at £250K. Do i still “not” qualify.
[Reply]
admin Reply:
March 30th, 2010 at 1:42 pm
Dear Mrs Bradbury,
One of the conditions of equity release is that you use some of the money you receive to pay off any outstanding mortgage you have against the property. However, you would not be able to raise sufficient funds through equity release to do this.
If you would like to discuss your other options in more detail please contact one of our advisors on freephone 08080 10 10 10, or via our website http://www.agepartnership.co.uk by requesting a callback.
Kind regards
The Age Partnership Team
blog@agepartnership.com
admin
[Reply]
mrs p bradbury
25 Mar 10 at 6:59 pm