Equity Release Experts
Need some friendly advice?
Looking for a moving house mortgage can be a daunting task, that’s why here at Your Certified Expert our friendly team are happy to answer any questions you may have.
Our certified equity release brokers are all accredited .
With finance being heavily regulated, the advice you receive will be from a certified broker.
Equity release explained:
Equity release is a financial product that allows homeowners, typically aged 55 and over, to access the equity (the difference between the market value of their home and any outstanding mortgage) tied up in their property without having to sell their home. This is often used to supplement retirement income or meet other financial needs.
There are two main types of equity release:
- Lifetime Mortgage:
- How it Works: You borrow money against the value of your home. The loan, along with any accrued interest, is typically repaid when you die or move into long-term care.
- Interest: Interest is charged on the amount borrowed, and you can either choose to pay it off over time or let it accumulate, which is then paid off when the house is sold.
- Home Reversion Plan:
- How it Works: You sell a portion or all of your home to a reversion company in exchange for a lump sum or regular payments. You continue to live in the home rent-free or at a reduced rent for the rest of your life.
- Ownership: The reversion company owns a share of your home, and when the property is eventually sold, they receive their share of the sale proceeds.
- Access to Cash: Allows you to unlock the value in your home without having to move.
- No Monthly Payments: Most plans do not require monthly repayments; instead, the loan is repaid after you pass away or move into care.
- Lifetime Occupancy: You can continue to live in your home for the rest of your life.
- Reduced Inheritance: The value of your estate will be reduced, which means less inheritance for your beneficiaries.
- Interest Accumulation: With lifetime mortgages, the interest can accumulate quickly, significantly increasing the amount owed.
- Impact on Benefits: It may affect your entitlement to means-tested state benefits.
Equity release can be a useful tool for older homeowners but requires careful consideration and often the advice of a financial advisor to understand the full implications.
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