Equity Release


equity release ?

If you’re a homeowner you’ve probably seen the value in your home increase over time.
Equity Release mortgage cardiff wales
Equity Release mortgage cardiff wales

We can offer advice on equity release  and allow you tap into some of this value for you to use however you wish. The type of equity release we advise on is a lifetime mortgage. This is a long-term loan for which minimum age and property values apply.

You can use the money on anything you want, for example, home improvements, top up your pension income, or a few of life’s luxuries. You’ll retain legal ownership of your home. Normally you can stay in your home for as long as you want, or until you go into long-term care.

Unlike a traditional mortgage, with equity release mortgages there are no monthly repayments. Each year interest is added to the loan and on any interest previously added. The loan and interest are repaid in full, usually from the sale of your home, when you die or go into long-term care, subject to our terms and conditions..

If you select an Equity Release Council approved product they typically have a  ‘no negative equity’ guarantee, so you, or your estate, will never pay back more than the eventual sale price of your home, provided this is sold for the best price reasonably obtainable. This is a lifetime mortgage. To understand the features and risks,  please ask for a personalised illustration.

A typical fee of £1,295 will be charged on completion for equity release mortgages. The actual amount will be dependent on circumstances. We may also be paid commission by the lender.


What are Lifetime mortgages ?

Lifetime Mortgages are types of equity release mortgages where you can choose to extract your funds in a single lump sum or in smaller amounts over time up to the maximum limit agreed with the plan provider. You can also elect to retain some of the value of your property as an inheritance for your family, meaning that you can benefit from releasing equity while ensuring you have something to pass on to your children.

Typically you retain full ownership of your home and interest on the loan can be fixed or rolled up. The loan and the rolled up interest is repaid by your estate when you either die or move into permanent long term care. If you are part of a couple, the repayment is not made until the last remaining person living in the home either dies or moves into permanent long term care. In other words, both you and your partner are free to live in your home for the rest of your lives. With some Lenders plans you can make monthly interest repayments in part, or in full. That way, you can maintain the debt to the initial amount of the loan before interest. If you choose to make interest repayments, you still have the option to move to a roll up arrangement at a later date if you wish. There are even some lenders who can offer you the option to pay some capital throughout the plan but always discuss details and your intended plans with your equity release mortgage advisor.

How much can be released is dependent on your age and the value of your property. Some providers may offer larger sums to those with certain past or present medical conditions, or even ‘lifestyle factors’ such as smoking habit.


Are equity release mortgages safe?

Always look for Equity Release mortgages  that are covered or follow the Equity Release Councils approved products, that way you know they meet a certain standard.

How much can i borrow on Equity Release ?

Typically its between 20% to 50% of the property value, depending upon your age and health circumstances. The older you are the more Equity Release lenders will typically release, equally if you have health conditions then again you might be able to release more money. To be certain of the actual amount the Equity Release provider will instruct a surveyor to give a professional valuation of your property that would define the amount that could be released. How much can be released is also dependent on your age and that of your partner (if you are making a joint application) and the value of your property. Some providers may offer larger sums to those with certain past or present medical conditions, or even ‘lifestyle factors’, ie smoking habit.


Can I use Equity Release to repay my Interest only mortgage?

Yes equity release is being used by many people across the UK to repay interest only mortgages

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