Equity Release Mortgages

An equity release mortgage can help you in numerous ways. You can use the money you release however you like. However, always contact us before choosing this option as we can help you to understand the full advantages and disadvantages. 

• – It can help you pay for care needs.
• – It can release pressure on you if creditors are chasing you for payment (repaying an existing debt or mortgage).
• – You can help your children with financial difficulties or to purchase their own home.
• – You can travel and do things you’ve always wanted to do.
• – It can help with long-awaited home improvements. 
• – It can increase your income, helping you live more comfortably and enjoy your retirement.

It’s important to note that even though there are obvious advantages, disadvantages include the fact that if you plan on passing assets to your loved ones once you pass away, an equity release mortgage could result in them inheriting less. 

There is the option to protect an inheritance for your family from the value of your home. The amount you protect will not be considered when calculating how much you can borrow. You can discuss this with our dedicated advisors at Bespoke Home Finance. 

Some equity release mortgage providers also offer a no negative equity guarantee. This means that the money you will need to pay back will never be more than the total value of your home. This is usually paid off from the sale of your home when the last surviving borrower passes away or moves out of the house into long-term care. 

Types of Equity Release Mortgages:

• Lifetime Mortgage: 

The most common form of equity release. A lifetime mortgage allows you to take out a mortgage secured on your property whilst still retaining ownership. 

• Home Reversion Scheme: 

With the home reversion scheme, you essentially sell part or all of your property to a home reversion provider at below market value in return for a lump sum or regular payments. You have the right to continue living in your property until you pass away, but as a tenant.