If you are aged over 55 then you may qualify for an equity release mortgage if your property qualifies and your credit history is good. There is a lot that can go wrong with an equity release mortgage transaction so this article will help you.
What is an Equity Release Mortgage?
An equity release mortgage also known as a lifetime mortgage is a loan secured against your property just like a normal mortgage would be. The difference with a lifetime mortgage is that you do not make any monthly repayments which makes them extremely good value with retirees. There is a sting in the tail though and that is that the interest being charged is being rolled up onto the loan.
Lifetime mortgages are often called roll up mortgages because of this interest roll up on the loan. With a typical interest rate of 7% most of these roll up loans will double in 10 to 12 years.
Where can I get an Equity Release Mortgage?
The best thing to do when you are considering an equity release mortgage is to visit an independent financial adviser (IFA). If you do not know any IFAs then you can look in yellow pages or go on the internet and search for an independent financial adviser in your local town or city.
An independent financial adviser will be able to search the whole market and make a recommendation. The other thing to remember is the duty of care an IFA has to act on behalf of you.
TO UNDERSTAND THE FEATURES AND RISKS ASK FOR A PERSONALISED ILLUSTRATION. AN EQUTY RELEASE PLAN WILL REDUCE THE VALUE OF YOUR ESTATE, WILL NOT BE SUITABLE FOR EVERYONE AND MAY AFFECT YOUR ENTITLEMENT TO STATE BENEFIT.
Related Posts :
