Click on any of the questions below to reveal the answer:

What is an equity release mortgage?

Equity release is a scheme open to the over 55s (although some schemes are for over 60s) it allows you to raise money against your property without the need to repay the loan until after either the death of the last borrower (if a joint mortgage) or when the last borrower goes into long term care whilst allowing you to stay in your home.

How does it work?

An equity release mortgage is similar to a conventional mortgage whereby the lender has a legal charge registered over the property, such charge remaining in place until either it is repaid or the property is sold following the death of the last borrower or the last borrower goes into long term care. Interest is charged as on a conventional mortgage but is not paid until the mortgage is repaid, the longer the mortgage term runs the more interest is payable.

Can I stay in my home?

Yes.

How much will it cost?

In addition to your own legal costs you will also be required to pay the equity release mortgage schemes legal costs.

Are there any restrictions with an equity release mortgage?

Usually the only restrictions are those associated with a conventional mortgage, eg, keeping the property insured and in good repair and condition, schemes do, however, vary from lender to lender.

Do all banks offer equity release mortgages?

A few of the high street banks offer such mortgages along with some insurance companies, Aviva and the Prudential were some of the first, there are also specialist firms that now offer this scheme, Just Retirement Limited being one of the main ones.

Can anyone get a equity release mortgage?

Age restrictions apply, a financial advisor will be able to advice you on this point.

How do I know the scheme is the right one for me?

There are different schemes, some as mentioned above, others require the lender to own a share of the property and some require the whole of the title to be transferred to the lender and the property is “leased back” to you. A financial advisor will be able to find the correct scheme for you.

For further information or for a quote please contact Alison Mason, Adam Fletcher or Liz Wallis.

For further information or for a quote please contact Alison Mason, Adam Fletcher or Mark Thornton.