Independent Equity Release Advice
Release Equity from your home to live the way you want
What is Equity Release?
Equity release allows those aged 55 and over to remortgage or sell their home, which can be an attractive option for those who are ready to retire or have retired. The term equity describes the total home market value less the outstanding mortgage amount. If you're considering releasing equity from your home, you must know how much equity you have. The amount of equity you can release is dictated by your age and the value of your home.
Released money can be used in any way you want (i.e. to pay off your loans, travel the world, make vital improvements to your home as you grow older, etc.).
Types of Equity Release Scheme
This type of equity release is the most popular. It's a great option that allows taking a loan secured against a home whilst still owning it. The money you can borrow is usually between 18 per cent and 50 per cent of the property's total value. Usually, the older you are, the more you can release. It's important to know that the owed amount will continue to grow with interest, but you can sometimes reduce this by paying off the interest as you go, and this is called an "interest-paying mortgage". If you choose not to pay off the interest as you go, you will have an 'interest roll-up mortgage' and end up repaying more overall, as the interest will compound over time. When you die or enter long-term care, your loan is fully repaid from selling your property.
If you're considering selling your home but don't want to give up your right to live in it until you die or move into long-term care, consider a home reversion scheme. With this type of equity release, you sell all or part of your property, but with a legal right to continue living in it until you die or move into long-term care. You can receive money as a lump sum or as a regular income. It is entirely up to you. Please note that you won't get the full market value of your home regardless if you want to sell all or a part of your home. Most Home Reversion Equity Release Scheme providers consider your age and state of health.
Why should I contact DJB Mortgages to take Equity Release Advice?
Independent equity release advice can be a valuable resource for those considering whether or not to release equity in their home. It can help identify potential risks and benefits of releasing equity and provide guidance on how to do so. If you are wondering whether Equity Release Scheme is suitable for you, get in touch with our Independent Equity Release Advisors to ask any questions you might have. We will take the time to understand your financial situation, tell you whether it's right for you and recommend equity release products that are a good fit for your needs.
If you're looking for an Equity Release Advice that isn't overloaded with jargon and false promises, look no further than DJB Mortgages. Our team of professionals takes a simple approach to provide just simple, plain-speaking, easy-to-understand quality information and excellent service. We'll walk you through the entire process, from beginning to end, so you know exactly what to expect. And if there are any questions or concerns along the way, we always stand by our commitment to provide support.
What are the different types of Lifetime Mortgage?
There are currently a number of different types available. Your Financial Adviser can give you the support to help decide which one would be most suitable for you. This is a significant decision so it’s
important to be clear on your options.
This allows you to release a lump sum with no requirement to make any payments until the loan is repaid. Interest is added to the loan, with the total debt and the accrued interest payable when the property is sold.
This enables you to borrow a smaller initial sum and then agree an amount that you can borrow in the future as needed. The interest rate is based on the interest rate at the time of each drawdown and interest is only charged on the amount you have taken, so the overall cost may be lower.
Aset amount is paid to you each month and can be used to top up your income in retirement. You may be required to take a small initial lump sum and then supplement this with a monthly amount. As with drawdown, you will only pay interest on the amount that you have taken so the overall cost may be lower.
Here, you can make monthly payments of all or some of the interest and so reduce the effect of accrued interest on the total amount borrowed.
YOU WILL NEED TO TAKE LEGAL ADVICE BEFORE RELEASING EQUITY FROM YOUR HOME AS LIFETIME MORTGAGES AND HOME REVERSION PLANS ARE NOT RIGHT FOR EVERYONE.