Equity release or a Lifetime Mortgage is a way of supporting yourself later in life by unlocking tax-free cash from the value of your home, without having to move out.
The loan and interest is repaid at the end of the mortgage term using the proceeds of your house’s sale when you die or move into long-term care.
- The money you receive from a lifetime mortgage loan is tax-free.
- If you select a lifetime mortgage with a drawdown facility, you’ll be able to release extra cash to top up your retirement income on a regular basis.
- There are no monthly interest repayments unless you choose a lifetime mortgage which allows you to make payments to keep the debt under control.
- A no negative equity guarantee means you will never owe more than the value of your home.
Things to think about
- Your loved ones will receive less inheritance.
- You will need to pay early repayment charges should you decide to exit the scheme early.
- The products have fixed interest rates which means interest will continue to accrue on the amount you borrow.
- Any equity release loan may impact your tax position and eligibility for means-tested benefits like pension credit.
To find out more, check out the Equity Release Council GuideEquity Release Council Guide
Why choose The Finance Roome?
We talk you through the entire process and with thousands of mortgage deals at our fingertips we can find the right solution for you, whether you’re looking to release funds to pay off debts, top up your retirement pot or help a loved one buy their first home. We’re on the end of the phone when you need us and always have your best interests at heart.
How we helped Mrs M
Mrs M’s daughter contacted us initially to enquire about releasing some money for her mother. Mrs M had run up a large amount of debts on credit and store cards. She had no way of repaying them and was extremely worried about the spiralling debt. Her boiler had broken down and being unable to afford to pay for it to be fixed, she’d had no heating for 3 years. Upon moving back home temporarily, Mrs M’s daughter realised how stressed and embarrassed her mother was. Mrs M was too proud to take an IVA or make herself bankrupt and said that having spent the money she felt she must repay the debt.
We managed to release £60,000 on Mrs M’s £200,000 property on a life-time fixed rate of 2.88%. This enabled her to repay the debts, fit a new boiler and kitchen. They were both delighted.
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Equity Release is a Lifetime Mortgage. To understand the features and risks please ask for a personalised illustration.
It’s important to check this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. A Lifetime Mortgage will reduce the value of your estate, will not be suitable for everyone and may affect your entitlement to state benefits.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE Our fees and charges vary depending on the Services we provide to you. We typically charge an admin fee of up to 1% of the mortgage at the time of applying for the full mortgage application, however we will try where possible to wave our client fee (subject to the size of the mortgage). We will also be paid commission from the lender. The precise amount will depend on the complexity of the work involved and will be discussed and agreed prior to submitting the mortgage application. The Finance Roome Limited is authorised and regulated by the Financial Conduct Authority, ref 745454. Registered Office address is Hangar SE50@ Skypark, Gloucestershire Airport, Cheltenham, GL51 6SR. Registered in England and Wales. Company No. 05901651.
We normally charge a fee for Equity Release advice; however this will be dependent upon your circumstances. Our typical fee is £750