The purpose of taking out an Equity Release is to turn any existing equity that is in your home, into a lump sum of cash to spend however you please.
You are able to use the released money for a wide variety different things, with popular options including to pay off an existing mortgage payment, to pay off any unsecured debts you may have gathered, to fund any potential home improvements or modification, as well as to pay for any holidays you wish to take, car payments and other similar large payments.
Your Equity Release will more than likely be presented in the form of a Lifetime Mortgage.
The way a Lifetime Mortgage works, is either once you have finished your mortgage term or even if you still have an outgoing balance to pay for, you have the option to release your equity by way of this route. On the basis that this is your main residence, you may be able to take out a Lifetime Mortgage, sectioning a portion of the equity for future family inheritance, if you wish.
You may still have the option to make monthly payments back if you would like to do so, however a popular choice among homeowners is to simply let interest roll-up. The loan only becomes repayable once you have passed away or happen to move into long-term care, declared unfit to live by yourself without assistance.
You must remember when looking at this for a financial option, that for one, you have to be at least 55 years old to qualify. In addition to this, your age, as well as the value of the property can affect how much you are able to withdraw from your properties equity.
For further Mortgage Advice in Liverpool regarding Equity Release, we highly recommend seeking the advice of a Specialist in the field. Get in touch with a Mortgage Broker in Liverpool and we will book you in with our trusted Equity Release mortgage advisor.
To understand the features and risks, ask for a personalised illustration. Our typical advice fee is up to £1,495 only payable on completion. A Lifetime Mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.
As mentioned in the above section, there are a all kinds of reasons why somebody may wish to take out a Lifetime Mortgage for Equity Release. We often find that customers use this for things like:
You may still be able to take out a lifetime mortgage and use the equity to pay off the remaining balance of a mortgage, even if your term is still ongoing. Your affordability, however, may be affected by the fact you do technically still have a large outgoing to cover the costs of, which may end up limiting the amount a lender may give you.
Secured debts generally will include things like a mortgage repayment, with it being secured against a particular asset, which in this case would be your home. Unsecured debts will include things like personal loans, where a debt is not secured against any asset. In times like these, people will often choose Equity Release to cover the costs of any unsecured debts that have built-up.
Some people may look at their options of taking out an Equity Release for the purpose of Home Improvements, Modifications or Alterations. This works the same as people who wish to use a Remortgage for also releasing their equity, with the only difference being that a Remortgage to Release Equity will almost certainly place you on a Repayment Mortgage, whereas regular Equity Release will place you on a Lifetime Mortgage. Popular choices for these types of projects include home offices, conservatories, garden improvements, extensions, new living rooms and kitchens, and a new or additional garage next to one you already have.
There are various other purchases you want to make once you have released some equity from your property. We regularly hear of these including things like a new car, a holiday or two away, a wedding and literally anything else you can think of. The point here is, the equity in your property is yours to spend on whatever you would like to spend it on.
If you have any Equity Release Mortgage queries, feel free to get in touch with our team.
As proud providers of mortgage advice in Liverpool, Equity Release is something that we cover. We have a reputable Equity Release specialist on our team who is here to help. They are trusted and qualified experts on this topic and will be able to answer all of your questions.
We can take a look at this, yes! We are able to help you with a standard Remortgage enquiry if you are near the end of your fixed period or have any questions.
Our experience within the mortgage industry is over two decades. Through this length of time, we have helped thousands of customers achieve their mortgage dreams, doing everything we can to help them overcome any mortgage hurdles that have become apparent during the process. We have absolutely no ties to any estate agents, banks or building societies, working hard solely for you, our customer.
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