EQUITY Release and remortgaging is a complex subject and you should always take specialist advice and whether you proceed or not should be based upon a full understanding of risks and rewards.
This is where we come in. We are here so you can understand both so you can make an informed decision.
An Equity Release mortgage is a special type of loan secured against your home. Essentially, it is a way of raising money from the equity in your house, ie the value of your home, after any debts secured against it are taken into account. An equity release mortgage can be taken in the form of a lump sum or an income and it is aimed at people aged 55 or over.
It is a means for you to unlock more cash from your home than if you were to go down the re-mortgaging route and this is mainly due to the fact you will not have to make any monthly repayments.
With re-mortgaging, you would be required to pass affordability checks which is done by the lender for the duration of the loan whereas with Equity Release there are no affordability checks. An adviser affordability assessment is needed to work out if it’s suitable or not. You may also get a free survey but not all of the time. It’s similar to a normal mortgage where you will sometimes have to pay for it.
With Equity Release the minimum age requirement is higher for an equity release mortgage. With a standard mortgage, the minimum age requirement for most lenders is 18.
With a standard mortgage, there is a fixed repayment period. With an equity release mortgage, the agreement is usually that the mortgage is repaid when your property is sold on your death, or if you move into long term care.
Equity Release or Remortgaging
With some forms of Equity Release mortgage, you make no monthly payments of either interest or the capital balance, unlike a standard mortgage. Instead, the interest is rolled up and added to the capital balance. Some of the time it is added daily or sometimes monthly and can also be impacted if you change providers. Or you might agree an amount to be paid back to the lender when your property is sold.
If you choose a home income plan Equity Release mortgage, you can receive the money as a regular income.
Our fully FCA regulated independent mortgage brokers will be happy to assist you in going through all of the differences with you and we will help you to decide what is the right financial solution for you.
Worldwide Financial Planning offers you your own dedicated Equity Release mortgage specialist. Your appointed specialist will understand your needs and research every lifetime mortgage in the UK and find the very best option suited to your circumstances. Your specialist will explore roll-up mortgages, interest only mortgages and fixed payment mortgages. Ultimately, you’ll get the best option for you based on the results from our independent research.
Your dedicated adviser will remain your appointed specialist from your initial enquiry to the funds reaching your account. We are FCA regulated and our research into the most appropriate safe home income plan is second to none.
There will be costs to consider such as arrangement fees, application fees, valuation fees, legal costs and possibly buildings insurance if you don’t already have it and if your lender stipulates this as a requirement.
We want what’s best for you, and your situation, so take the first step by emailing our team on info@wwfp.net and we will start the process by appointing a specialist to you. We look forward to helping you achieve what’s best for you.