One of the most classic pieces of advice most people have been given during their youth is ‘buy yourself a property, you must get on the property ladder’ so you did, right? Now you have yourself an unencumbered (mortgage free) property, great… but with all this equity tied up in your house you’re finding yourself feeling like you need some extra cash for that well-deserved holiday or to make those renovations you’ve always wanted or maybe just to enjoy your retirement without worrying about paying the bills. Whatever your reasons, a lifetime mortgage could very well be the answer, life isn’t just about hard work it should be about enjoying time with the people that matter to you doing the things that you love doing, especially during your twilight years with all that hard work behind you!
So, you may have heard of equity release or lifetime mortgages, the industry is heavily regulated due to the nature of the loan, costs have been placed front and centre and children of the homeowners are actively encouraged to be involved and fully aware of the process where the homeowner agrees. The higher costs of lifetime mortgages are reflective of the risk involved for the lender, traditional mortgages, you are required to make regular payments to service the interest on a monthly basis, lifetime mortgages however do not make this demand and also assumes that there is a risk of negative equity.
So how do lifetime mortgages work I hear you ask?
Everystep Financial are experts in Equity Release, we can guide you through the process in layman’s terms ensuring your understanding in exactly what will happen with none of the jargon to baffle you. Lifetime mortgages can be serviced in several ways, the homeowner can decide to take a lump sum or draw down smaller regular amounts or a combination of both from the value of their house whilst still residing in it.
Having the option to make repayments or let the interest roll up which would be paid on death or upon moving into long term care.
Give one of our advisers a call to discuss if Equity release is for you.