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Equity Release

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Having a Lifetime Mortgage can potentially unlock the equity within your property for you to use in many different ways.

There are so many options when it comes to Lifetime Mortgages, whether you want to release equity to pay for Home Improvements, boost your retirement income, or, if you want you want to support your children in buying their next home. Whatever you decide, we’re here for you!

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made for equity
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Your Equity Release Knowledge Hub

I would highly recommend Sam and the Warrington Mortgage Centre.

Sam was able to help us navigate through both a buy to let mortgage and got us a great deal on the purchase for our home in Leicester even with the current market conditions caused by Covid. Sam and the team were always professional, friendly, flexible and willing to go the extra mile to help. Rick & Linda

How to get started with my Lifetime Mortgage

 

step 1

We’ll find the mortgage – Made for You!

Tell us how we can help you with your Lifetime Mortgage, and we will set you up with your own Mortgage Hero (that’s what people call us!)

step 2

Your local mortgage experts

We’ll be there, holding your hand throughout the process. We’ll make sure that we take care of all your paperwork, and make sure you’re kept up to date with your chosen lender, surveyor & solicitor. We will make sure that you know all the mortgage figures and how you can set up your Lifetime Mortgage to ensure you’re making the most from your asset.

step 3

Equity Release – Simple and Easy to Understand

Before you know it, we’ll have helped you understand the complex variety of Lifetime Mortgages, how they can be set up and what benefit they will provide you and you family. There’s so many choice when releasing equity from your home such as; home improvements, gifts to family, luxury holidays or even to help to up your pension income. As part of our service, we’ll also make sure that any older children understand the mortgage contracts too.

 

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Equity Release questions

FAQ’s

What is Equity Release?

Equity Release, or Lifetime Mortgages as you might come across, in a nutshell, is a way to unlock the value for your property and turn it into a cash lump sum. You can do this with a number of providers that let you release equity from your home, if you’re 55 or over that is.

How does Equity Release work?

The most common form is a mortgage that isn’t paid off until you die or move into long term care.
If you do have people to pass assets to, equity release generally means there will be less for them to inherit. Equity release products fall into two main types of product:

Lifetime Mortgage
This is the most popular and for those over the age of 55. Here you borrow some of your home’s value at a fixed or capped interest rate (see below for more). With old-style lump-sum lifetime mortgages, you don’t make repayments, so the interest compounds each year as the amount you owe is increasing all the time.
Some ‘drawdown’ versions do allow you to pay back the interest (some even allow you to pay back some of the capital as well) so you can reduce the overall cost. With this type, you can take money out of your property a bit at a time up to an agreed amount – with interest charged on the amount you take, rather than the whole amount available.

Home Reversion Pan
Less popular in their take up, you’ll need to be over the age of 65. Here a provider pays you a tax-free lump sum for a portion of your home at below market value. You can then live in the property (rent-free) until you die. When it’s sold, the proceeds are split based on the percentage you own and the lender owns. So if your property value rises significantly, so does the amount it gets.

For example, if you sell a 40% share in a £200,000 property in return for a lump sum of £40,000, this cash you receive is at a huge discount to the £80,000 this share is actually worth (at current market prices) – mainly because the provider will have to wait many years to get its money back. Years later, when you die, if your home is eventually sold for £300,000, the provider would then be entitled to £120,000 – 40% of the proceeds.

Therefore, with lifetime mortgages you know the exact rate, where home reversion is based on the value of the property.

How much can I lend with Equity Release?

Unlike a traditional residential mortgage, affordability is usually based on your age. The older than you are, the higher them amount you may be able to borrow. This can also be affected by any life-limiting illness you may have where a provider may lend you even more due to life expectancy. You’ll need to be over the age of 55 though and if you have any outstanding mortgage balances on your property, they will need to be repaid as part of the equity release.

What can Equity Release be used for?

Equity Release is used to unlock capital from within the property. This can be used to:

– Top-up your pension income by using the capital release to buy an annuity.
– Home or Garden improvements
– Gift money to family members
– Go on holiday
– Pay off outstanding debts
– Clear your outstanding mortgage that has come to the end of its term
– Switch an existing Equity Release Plan