Equity Release Mortgages (ERMs) also known as Lifetime Mortgages, equity release plans or equity release schemes, are a great way to help you if you need to raise your income, perhaps to supplement your pension; to increase avaialble cash for whatever reason; to transfer capital to assist with IHT planning etc.
Equity Release Mortgages (ERMs) are aimed at the older customer and enable homeowners without a current mortgage on their property to release some of the cash (equity) accrued over the years. They are also available for applicants who have a small existing mortgage. It is particularly customer friendly because there is no possibility of property repossession, the customer retains ownership of property and the loan is usually transferable to a new property should the applicant/s wish to move. Minimum age is 55-60. There is no requirement to make monthly repayments. The equity release mortgage, including accrued interest is simply repaid when the property is sold.
Most good companies will arrange an appointment for you with an independent adviser (IFA) specialising in equity release to discuss your requirements. The decision of whether to take an equity release scheme is entirely yours. A good company will provide you with all the information you need to make an informed choice. After all, with over 30 different schemes to choose from it makes sense to review all your options before making a decision. And choosing the right plan can make a difference to you of thousands of pounds.
All advice provided is independent and impartial and not tied to any bank, building society or financial institution. The subtle differences between many existing schemes and the pros and cons of each can be explained to you.
The key featues of Equity Release Mortgages include:
- No possibility of property repossession
- Clients retain ownership of property
- Deferred interest. No repayments on the loan during the life of the equity release scheme-the balance is repaid when either the applicant passes away or the home is sold and the applicant enters long term care
- In the event of a joint application the equity release mortgage is repayable when both applicants have either passed away or entered long term care
- In the event of negative equity, lender is responsible
- Adverse credit/low income does not affect the applicant’s ability to qualify for the equity release scheme
- Interest rate fixed for term of the equity release mortgage.
- Funds released by an equity release mortgage can be used for any purpose, including purchase of further pension annuities.
- Fast Completions