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Equity Release Mortgages Q and A
When it comes to looking at options for finances in later life, there can be many options. We took a moment to speak with our expert Charlotte Rainsford to help us understand the options available.
Equity Release Mortgages sometime called Later Life Mortgage offer a flexible and practical solution for individuals aged 55 and above, allowing you to unlock the equity in your home and make the most of your hard-earned assets. But it isn’t necessarily the right option for everyone. Here our expert Charlotte answers a few frequently asked questions to offer a clear understanding of how Equity Release Mortgages work and the benefits they can offer.
Will I still own my home?
Yes you still retain full ownership of your property. Lifetime mortgages allow you to remain living in the property until you die or go into permanent long term care.
Am I eligible?
You must be aged 55 or older, each provider has their own additional lending criteria and we can talk through this with you to help establish if you meet the specific criteria for each lender.
Can I move home?
Yes – you will be able to transfer the lifetime mortgage (Equity release) to another property. However, in some circumstances certain properties may have restrictions based on their future saleability. But this doesn’t prevent you from looking and we are here to help discuss this in more detail with you.
What can I use the money for?
The money is yours to spend as you wish. Common reasons people taking out a lifetime mortgage is to repay an existing mortgage, top up their income, going on a holidays, home improvements, new car or to gift money to children or family members.
Can I still leave my children some money?
Some products will allow us to protect a percentage of the property for you to leave to your beneficiaries – this will reduce the maximum you can borrow initially. But again, not all options have this kind of agreement and we can discuss this with in more detail so you fully understand any restrictions.
Can I take a lifetime mortgage if I still have a mortgage?
Yes. You can but you must be able to raise enough funds from the lifetime mortgage to pay your existing mortgage off.
Would any of the debt be left for my family to pay?
No, all lifetime mortgage products offer a ‘no negative equity’ guarantee – provided the terms of the mortgage are met.