Equity Release

Background

Several years ago, my own sweet grandparents (in their 80’s and pictured below!) revealed that they had taken out a lifetime mortgage on their home… a home which should have been theirs for years by now and should have provided them comfort and security! Instead, this confession came as a result of them realising the current balance of the lifetime mortgage was spiralling out of control. Without all the protective measures that apply to lifetime mortgages in the current day, this was becoming a real burden for them.

Don’t get me wrong, this mortgage was taken out a very long time ago to help a family member but the fact that they were now having to sell their home to release them from this, really hurt us all. So I decided to do something positive…

It’s for this reason that I decided to add equity release, specifically lifetime mortgages to my already successful mortgage business. I knew I couldn’t change the world, but I knew I could make a huge difference in the space I was taking up in it! I knew that for every grandparent that I helped to take out a lifetime mortgage, another family would be spared the emotions that my own family endured as a result of poor advice as I treat your family, as if they were my own.

For whatever purpose you are looking for a lifetime mortgage, you can rest assured that you will receive the best advice. I will always look at the alternatives, give clear information, involve family members at your request and will always be empathetic in what could be a vulnerable time. You will only ever deal with myself and whether that’s over the phone, in your own home with a cup of tea and a biscuit or a combination of both, I will always help you in whatever way suits you.

Lifetime mortgages aren’t for everyone so my aim is to be there to guide you through everything and help you make an informed choice as to whether it is right for you. Truly, putting my heart into your home.

What is a lifetime mortgage?

A lifetime mortgage is the most common type of equity release. Customers who take up a lifetime mortgage keep full ownership of their house, and any interest on the loan can be paid as it accrues or rolled up and paid at the end.

When you die or move to permanent long-term care (or in the event of a couple, the last person residing in the home), your estate repays the loan and any outstanding interest.

The amount of money a customer can borrow is determined by factors such as their age, health, and the value of their home. Only persons over the age of 55 are often eligible for lifetime mortgages.

If you make the decision to take out either a lifetime mortgage or a home reversion, you must also take legal advice.

You will need to take legal advice before releasing equity from your home as Lifetime Mortgages and Home Reversion plans are not right for everyone.

A lifetime mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action.

If you are considering releasing equity from your home, you should consider all options available before equity release.

The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution.

As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.

Although the final decision is yours, you are encouraged to discuss your plans with your family and beneficiaries, as a Lifetime Mortgage could have an impact on any potential inheritance.

I would also encourage you to invite them to join any meetings with your Financial Adviser so they can ask questions and join in the decision, as I believe it is better to discuss your decision with them before you go ahead.

Ready to take the next step?