How can you join the thousands of people over 55 releasing equity in their own homes?
You could raise immediate TAX-FREE cash with the option of no monthly payments, allowing you to:
- Pay off an existing mortgage
- Fund new home improvements
- Plan your inheritance
- Tackle your low pensions
- Financial support for your loved ones
- Take a holiday
- Help a family member on the property ladder
- Or more!
What are equity release and later-life mortgages?
Lenders typically require a mortgage to be repaid before the applicant reaches retirement. Equity release and lifetime mortgages allow homeowners aged 55 or older to access a cash lump sum or regular income based on their property’s value.
Rather than making monthly repayments, the loan is usually repaid from the property’s sale proceeds. This typically happens when the homeowner passes away or moves into long-term care.
Equity release mortgages often involve no monthly payments. The interest is added to the loan balance and repaid from the sale proceeds. The amount available to borrow depends on the property’s value and the applicant’s age. Older applicants can usually borrow a higher percentage.
A later-life mortgage, also called a Retirement Interest Only (RIO) mortgage, requires monthly interest payments. This option may allow you to borrow more, particularly if you are younger, but you must demonstrate sufficient income to cover these payments.
At Connect, we pride ourselves on finding the best deal for our clients. Unlike firms offering limited options, we work with a wide range of equity release and later-life lenders. For expert advice, contact one of our specialist advisers today.
CASE STUDY
“..Mr and Mrs M in their early 70s had an interest-only mortgage with a term coming to an end. They had limited income from pensions and wished to remain in the current family home. We were able to find a provider that was prepared to lend just under 50% of the property value which released enough funding to repay the existing mortgage loan as well as repay some personal debt. This reduced monthly outgoings for Mr and Mrs M by nearly £1,600 per month and meant that they were able to stay in their current home..’’
Equity release plans are not right for everyone, and it is important that you fully consider your options and receive impartial financial advice before making a decision. It is also important that, if you decide to use an equity release product, you must be sure it meets your needs.
If you want to end your lifetime mortgage early, you may have to pay a substantial early repayment charge.
A professional adviser can help you choose the right plan for you. To understand the features and risks, ask for a personalised illustration.
