Equity Release Made Simple…
Equity release is a way of releasing cash from your home without having to move, either by taking out a type of loan secured against your home or by selling all or part of your home to a home reversion company.
There are certain conditions you must meet before being able to take out equity release.
- For a lifetime mortgage you (or both of you, if you’re borrowing jointly) need to be at least 55 years old.
- For a home reversion plan you (or both of you, if you’re taking out a plan jointly) need to be at least 65 years old.
- You must own property in the UK, which must be your main residence.
- Your property must be in reasonable condition and over a certain value, and there may also be restrictions on the type of property accepted.
- If you have a mortgage or secured loan on your property you may still qualify for equity release, but it will depend on the value of your home and the amount outstanding on the existing mortgage or loan. You’ll have to pay off any outstanding mortgages or loans secured against your home at the same time as taking equity release.
- Equity release may not be suitable if you have dependants living with you. Any dependants should take separate legal advice. If they wish to remain living with you in the property, they may need to sign a waiver confirming that they understand they don’t have the right to reside there if you die or move into permanent residential care.
There are two main types of equity release:
Lifetime mortgage. This is the most common type of equity release. You borrow money secured against your home. The mortgage is usually repaid from the sale of your home when you die or move permanently into residential care.
Home reversion plan. You raise money by selling all or part of your home while continuing to live in it until you die or move into permanent residential care.
Simply give us a call or click FREE CONSULTATION and one of our advisers will contact you to help obtaining the right solution.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and loan amount. The FCA does not regulate most buy-to-let, second charge or commercial mortgages. The Financial Ombudsman Service is available at www.financial-ombudsman.org.uk or by contacting them on 0800 023 4 567.
Mortgage Circle is a trading style of Avram Financial Services which is authorised and regulated by the Financial Conduct Authority. Registered is England No. 9781006. Registered address 205 Kings Road, Fairgate House, Birmingham, B11 2A
0121 572 0675 / 0800 644 0190
Fairgate House, 205 Kings Road, Birmingham, B11 2AA