Equity release is a way of releasing cash from your property, either through selling a percentage to the reversion company or taking a mortgage on it, while allowing you, the homeowner to continue living there as long as you wish.

TO UNDERSTAND THE FEATURES AND RISKS OF AN EQUITY RELEASE MORTGAGE, ASK FOR A PERSONALISED ILLUSTRATION.

Lifetime Mortgage

A lifetime mortgage is a loan secured on the property. It can be taken as a lump sum or drawn down in segments.

Where it has been taken as a lump sum, compound interest is added to the loan value over the term of the loan and paid when the house is sold. The hope is that house price growth will offset the interest, but whether or not this occurs, the no negative equity guarantee prevents the loan value exceeding the value of the house (only available with products that adhere to SHIP (Safe Home Income Plans). These are the only types of products we recommend.

Under a drawdown arrangement, a maximum loan amount is agreed at the outset and segments of it are simply drawn as needed. This means that interest does not roll up on the entire loan amount, but only on the part that has been drawn down. This can help reduce the effect of compound interest and can be particularly useful if it is known that some of the money will be needed at a future date, not immediately. No payments are made each month and are therefore “Rolled up”.

The mortgage will become payable when the house is sold or the individual enters into Long Term Care.

Home Reversion Plan

Home reversion involves the sale of all or part of the owner’s beneficial interest in the property to the provider, while retaining the right to remain in it for life.

There is no interest, as a percentage of the beneficial interest in the property is sold to the provider.

The provider owns a share of the property and any of its increase in value. If the property prices increase significantly, this can mean that a large sum is taken by the provider upon the death of the client. A lack of understanding of this point has led to some criticism of home reversion schemes in the past.

Mortgages
life insurance
home insurance
equity release

We offer whole of market advice for all types of customers, whether you are a first time buyer, home mover or looking to purchase a buy to let property. Being independent we are able to offer impartial advice from the whole of the market to ensure you get the product that suits your financial needs.

Whether you are looking to protect your mortgage payments or your family, we provide independent advice for life insurance, critical illness cover and income protection from a wide range of providers.

Buildings Insurance is a requirement when you complete on a mortgage the cover is to provide security to the lender, the insurance covers the main structure of your home. It will cover you for subsidence, storm, flood, fire or smoke damage and cover the costs of rebuilding or repair.

Equity release is a way of releasing cash from your property, either through selling a percentage to the reversion company or taking a mortgage on it, while allowing you, the homeowner to continue living there as long as you wish.