Equity Release Mortgage
Releasing equity from your home can be a big step to take, so you must make sure you know all the ins and outs before going ahead. There are three main types of equity release mortgages; Home reversion plans- This is when you sell all or part of your home back to the lender in return for either a lump sum of money, a set monthly income, or combination of both.
Should you decide to sell you hole house, you will technically be a tenant in your home, then when you go into long term care, or pass away, the reversion company will be paid back.
Lifetime Mortgages
Like home revision plans, but the interest on the money borrowed is tied up into the loan so that you pay nothing until you die or go into long term care when the mortgage and interest will be paid off.
Home Income Plans
This is when you take out a mortgage against your home and use the money to buy something called annuity which will guarantee you income for life. The mortgage interest is then deducted from that income and the remaining mortgage is repaid through the money made when selling your house upon death, or moving into long term care.
The amount you can borrow regarding these types of mortgages depends on your age, credit history and the overall value of your property. The older you are and more valuable your property, the more money you would probably be offered.
Contact Us Today
We look forward to assist you with your Equity Release Mortgage enquiries. If you have any questions please call us today on: 01524 543902 to find out more.
