Equity Release Lifetime Mortgage Schemes

Equity Release Schemes which are often referred to as Lifetime mortgages, provide a way of unlocking the value of your property without having to move home. Equity Release Schemes are available to the over 55's who have either paid off their mortgage altogether or have only a small amount left to pay and can be a good way to supplement income if you find yourself like a growing number of people, 'asset rich but cash poor'.

However equity release mortgages are a serious decision and not necessarily right for everyone. It may be that using existing savings and investments, downsizing or even borrowing money from friends or family could be more suitable.

The Mortgage Warehouse equity release service, ensures that you are provided with specialist advice and receive dedicated support throughout every part of the process.

• Coventry Lifetime Mortgages
• Hodge Equity Release Mortgage
• Just Retirement Equity Release Lifetime Mortgages
• Liverpool Victoria Lifetime Mortgage
• National Counties Building Society Equity Release Lifetime Mortgages
• New Life Lifetime Mortgage
• Northern Rock Lifetime Mortgages
• Norwich Union Lifetime Mortgage
• Prudential Equity Release Lifetime Mortgages
• Standard Life Bank Lifetime Mortgage
• Stonehaven Equity Release Lifetime Mortgage

Simply complete the Equity Release Quote Request, and we will forward the following information for your consideration.

• Equity Release - Company Comparison
  
• Equity Release - Key Fact Illustrations
  
• Equity Release - Company Brochure
  
• Fact Sheet - Financial Services Authority

Get a Quote

 

How can I release the equity in my property?

Equity Release - Rolled-up interest loans (equity release / lifetime mortgages)

The lender gives you a lump sum or a monthly income (or both), based on the value of your home. Nothing is repaid until you die or the property is sold, but interest is added to the amount you have borrowed each year and is 'rolled up' over the life of the loan.

The amount you can borrow depends on how much your home is worth and on your age. The older you are, the greater the percentage of your home's value you can borrow.

Interest-only mortgages

If you can afford to meet a monthly payment we may recommend an interest only mortgage. With an interest only Lifetime Mortgage you borrow a lump sum secured against the value of your home. You pay interest on the loan each month, and the lump sum you originally borrowed is repaid when your home is eventually sold. You need to be able to afford the interest payments out of your pension or other income however.

The interest rate may be fixed or variable. But if it is variable, and your pension or other source of income is fixed, you will find it more difficult to meet your repayments if interest rates rise.

Equity Release - Reversion Schemes ( Selling your home (or part of it )
This is normally called a reversion or part reversion scheme. You sell your home, or a part of it, to a reversion company that allows you and your partner to continue to live there for the rest of your lives. After you both die, (or move out for whatever reason) the proportion of your home that you sold becomes the property of the reversion company. Anything left over passes to your estate. (Please note The Mortgage Warehouse does not advise on reversion schemes)

Get a Quote

What will my Equity Release Scheme cost?

The costs will depend on the type of plan you choose, its terms and the amount of equity you want to release.

Completion, arrangement or application fees

These are usually between £300 and £600 and cover administration costs.

Valuation fees

For an Equity Release mortgage the lender will need to value your property to make sure that it provides good security for the loan. The valuation fee will depend on how much your home is worth, with higher charges for more expensive properties.

For a £100,000 property, the fee is likely to be between £200 and £300. Some companies may refund this when the loan is completed, and in some instances a free valuation may be available.

Solicitors' fees

These are usually between £300 and £500 and cover the legal work carried out on your mortgage.

We recommend Equilaw - A Specialist Equity Release solicitor- Equilaw Brochure

 

Insurance

You will need to have buildings insurance that is acceptable to the lender in place for the duration of the equity release / lifetime mortgage. This will usually cost between £200 and £300 a year.

Early repayment charges

To cover the costs involved in setting up an Equity Release Scheme, lenders may make a charge if you repay it early.

Exemptions from the early repayment charge are typically

• If you move home, including moving to a property of a lower value, provided you transfer your existing Loans to this new property, then no early repayment charge will be made.
• If you move home and have to make a partial payment to reduce the total amount payable to the new maximum amount you can borrow, then this partial payment (the difference between the current outstanding balance and the new Loan to value) may be subject to an early repayment charge.
• If you are borrowing on your own and you move into long term care or die, then no early repayment charge will be made.
• If you are borrowing jointly with someone else and you are the last borrower to move into long term care or die, then no early repayment charge will be made.

Mortgage intermediary's arrangement fee

Please see our Initial Disclosure Document

Get a Quote

THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS,
ASK FOR A PERSONALISED ILLUSTRATION.