Equity release market how perspectives are evolving Mortgage Introducer

Joseph said that the ‘want’ borrowers, often wealthier and gifting to children with one eye on inheritance tax savings, are now less likely to do so given that today’s rates are higher than they were 12 months ago. If you are a couple, the repayment is not made until the last remaining person living in the home either dies or moves into care. This means you both are free to live in your home for the rest of your lives. If you are thinking of taking out an Equity release plan then you need to find out as much as you can about your options. You can then weigh up the advantages and disadvantages fully before you decide if it is right for you.

Instead, the lender will roll-up interest against the loan, meaning that the amount owing will increase over time. The loan only becomes repayable when the last borrower dies or moves into Long Term Care. how does equity release work on both sides of an equity release contract and consumers and providers must each have their own legal representation. Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

You’re mortgage-free or only have a small mortgage.Your remaining mortgage will have to be paid off as a condition of taking out an Equity Release product. You can do this from the amount you release if there is sufficient scope to do so. You must live permanently in your home.The property must be your main residence and not left unoccupied for more than 6 months at any one time.

You should also look to consider any other type of finance source that could be utilised before looking to release equity in your property. This is something we can discuss with you to ensure that you have clarity. Usually, under this plan, you are able to remain in the property, rent-free or for a nominal monthly rent, until the property is sold.

It’s also important to consider that some older borrowers find it difficult to pass the affordability tests lenders have in place for remortgage deals. To help reduce interest charges, some lifetime mortgage deals allow you to make some repayments over the course of the loan. This means that there is less to pay once you die or move into care.

Think Plutus can help you find the best possible deal to unlock equity from your home to spend as you choose. If you still have a large lump sum from your Equity Release in the bank, or if you are receiving regular payments from it, this could mean you are asked to pay a bigger proportion of the care costs. Equity Release can be used to pay for care, either by releasing a large initial lump sum or by taking regular smaller lump sums to pay for the fees as you go.

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