Equity Release for the Discerning Homeowner
Here at The Equity Release Centre we have been arranging equity release schemes for over 16 years and continue to help our clients :-
- Clear existing mortgages or other debts,
- Help family, or simply
- Achieve some of the things they have always wanted to do.
Many of our clients chose us to arrange their equity release plan for them because:-
- We offer free no obligation home consultations - to ensure they can find out everything that they want to know about equity release in their own home and
- We are proud members of The Equity Release Council incorporating SHIP standards and therefore follow strict guidelines in advising them.
What are Equity Release Schemes?
Quite simply, equity release schemes or equity release plans, are a way homeowners aged 55+ can release some of the equity (the difference between your home’s value and any outstanding mortgage) that’s tied up in their homes, without the need to move. They also enable you to remain living in your home for as long as you wish.
The money released can be used for whatever you like and what’s more - there is no tax to pay on the money released from your main residence.
There are two main types of equity release schemes Lifetime Mortgages
and Home Reversion Plans
and you can read more about how they differ here
How much equity can you release?
Depending on your age (youngest owner must be 55) and your home’s valuation, different lenders will offer you differing maximum amounts. To see just how much you could release try our immediate and free to use equity release calculator.
Within these maximums you can then elect to borrow just as much or as little as you would like up the specified maximum amount. With the introduction of drawdown lifetime mortgages, you even can arrange a maximum borrow limit, but initially only take a smaller amount, leaving the balance available to be requested at any time. Taking money in stages like this then helps preserve more equity in your home as interest is only charged on what you actually borrow not on the total maximum facility.
"Equity release" includes home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.
Equity Release Advice - The importance of impartiality
As equity release becomes increasingly popular, new schemes are continually being developed, both to give more choice to you and also to meet more diverse needs such as schemes which allow you to release equity from holiday homes and plans which offer greater amounts to those with impaired health.
But all have different lending criteria and interest rates.
To ensure you get the best advice and right scheme for your needs, lenders do not offer these plans directly to the public but instead direct you to seek specialist equity release advice from suitably qualified specialists such as ourselves.
Having been specialising in offering impartial advice on equity release ever since 1999, we are one of the country’s most established specialist equity release advisers and comply fully with The Equity Release Council and SHIP standards for equity release advice.
Our principal Keith Hargraves is also a SOLLA accredited (Society of Later Life Advisers) specialist, further underlining our commitment to offering specialist impartial advice of the highest standard.
Isn't Equity Release Expensive?
Whilst all equity release schemes involve you in incurring interest, you can now choose whether to pay the interest via an Interest Only Lifetime Mortgage in which case the debt will not increase, or not to pay any of it a so called roll up lifetime mortgages. If you chose not to make any monthly repayments the interest is added to the amount borrowed when the debt will continue to increase and leave less equity overtime.
Equity release schemes are continually improving and there is now even a hybrid, or mix, of the two – essentially a roll up scheme but you can elect to voluntarily pay any amount each month (up to a maximum of 10% of the amount borrowed per annum) and if you do the debt doesn’t increase but you can elect at any time to reduce, increase or even suspend payments when any unpaid interest simply compounds or rolls up on the debt.
So clearly equity release needn’t be expensive and now you can decide just how quickly any debt increases, if at all.
Equity Release - Find Out More
We hope you will find this site informative and that it will answer many of your questions, but if you can’t find the answer you want, or would simply relish to opportunity to discuss your particular circumstances with an experience consultant, simply call us on 01476 589566 when we would pleased to help. Alternatively why not book your own free, no obligation home consultation, by completing our Initial Consultation form.