An alternative to conventional roll up equity release plans is the Halifax Retirement Home Plan Mortgage which is actually an interest only mortgage. The Halifax Retirement Home Plan is only available through selected intermediaries and can save you thousands of pounds in rolled up interest.
The plan is classified as a lifetime mortgage and can be used for unlocking the equity in your property as tax free cash or enable you to purchase another property. The product is available from age 60 and has three interest rate deals, a fixed rate interest plan, a tracker interest rate plan and a discounted interest rate option.
Halifax would not expect the loan to be repaid either until the eventual death of the homeowner(s) or if you chose to sell the property or repay the loan earlier.
It is certainly worth considering the Halifax Retirement Home Plan mortgage if you are looking to release equity from your home and could afford to make monthly repayments.
Halifax Equity Release
The Halifax Equity Release plan or as it is known the Halifax Home Retirement Mortgage is available for those over age 60. You can use the proceeds to spend as you wish and you can even use it to purchase a new property. With the Halifax equity release plan you can choose from a choice of interest rate options.
You need to consult with an authorised equity release intermediary and get advice.
Your home may be repossessed if they do not keep up repayments on their loan. Whilst a fixed rate mortgage can give your client certainty around monthly payments, the Bank of England base rate may go down as well as up. The value of your home may alter with market conditions so that the amount of the loan may exceed the value of the home.