Equity Release Adviser

What are the types of equity release mortgages?

You can release home equity by overborrowing on a new mortgage. But there are also home equity mortgages that work in a different way, namely lifetime mortgages and home reversion mortgages.

A lifetime mortgage is a when a senior homeowner accesses a large amount of equity and makes no repayments at all. Instead, they only repay the mortgage when they die through their estate or the sale of the property. They will have to repay early if they sell the home to move into aged care.

A home reversion mortgage is used by seniors to sell some or even all their property for below its market valuation (typically 20-60%). The money is paid out as a lump sum or in instalments and not subject to tax. You continue living in the home until death or until you move into aged care when it is then sold.

Why use an adviser to secure equity release?

Releasing equity is a serious decision to make with risks. You should only make this decision after a consultation with a finance professional who can explain those risks and make you fully aware of how equity release works. If you want to proceed and release equity, an advisor can help you compare equity loans and equity mortgages so you find a suitable and beneficial deal while also saving you time.

Reach out to one of our Moneysprite equity release mortgage advisers to discuss your equity release options. We have advisers from Birmingham down to Cornwall, and back across to Bournemouth, London and the South East, and help clients throughout the UK. Our friendly and patient team are here to assist you.

Think carefully before securing other debts against your property. Your property may be repossessed if you do not keep up repayments on your mortgage

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. We 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 we believe it is better to discuss your decision with them before you go ahead. This is a referral service.