Equity release is a popular method among individuals over 55 to unlock the wealth tied up in their homes without having to move. At Equity Release Brokers, we offer a diverse range of plans, tailored to suit different financial needs and retirement objectives. From Lifetime Mortgage plans to Retirement Interest Only Mortgages, the world of equity release can sometimes seem overwhelming, but with careful consideration and proper guidance, you can find the ideal solution for your later life. Here’s a closer look at the variety of services we offer.
1. Lifetime Mortgage Plans
This is the most common type of equity release. You can secure a mortgage against your property while retaining full ownership. The loan amount and interest accrued is paid back when you die or move into long-term care.
2. Lump Sum Plans
Here, you take a single, lump sum loan against the value of your property. Ideal for large, immediate expenses, it provides you with substantial upfront cash, but remember that interest accumulates over the entire loan period.
3. Drawdown Plans
This flexible plan lets you withdraw money in smaller amounts, as and when required. The advantage here is that interest is only charged on the amount you withdraw, not the full loan available.
4. Interest Only Plans
In this type of lifetime mortgage, you borrow a portion of your home’s value and pay monthly interest, reducing the total cost over time. The capital is repaid when the house is sold, usually when you pass away or move into care.
5. Enhanced Plans
These plans are designed for homeowners with certain health conditions or lifestyle factors. You may be able to borrow more money or get more favourable interest rates if you qualify.
6. Voluntary Repayment Plans
These plans offer flexibility to make ad hoc repayments towards the loan and interest. It can significantly reduce the total amount to be repaid in the future.
7. Income Plans
These newer types of plans allow you to borrow money that is paid to you as a regular monthly income, rather than as a lump sum.
8. Inheritance Protection/Protected Equity Plans
These plans allow you to ring-fence a portion of your property’s value to leave as an inheritance.
9. Fixed Early Repayment Charge (ERC) Plans
These plans have a pre-agreed repayment charge if the mortgage is repaid early, providing certainty on the maximum cost should you wish to repay the loan ahead of time.
10. Downsizing Guarantee Plans
This option allows you to repay your plan in full without any early repayment charges, if you decide to downsize to a smaller property in the future.
11. Buy to Let/Second Home Plans
These plans are designed for property owners who wish to release equity from a second home or a buy-to-let property.
12. Sheltered Housing/Age Restricted Property Plans
These plans are suitable for homeowners living in sheltered or age-restricted properties. The terms of the equity release are tailored to accommodate the property’s specific conditions.
13. Home Reversion Plans
Here, you sell a part or all of your property to a reversion company for a lump sum or regular payments, while retaining the right to live in the property rent-free for life.
14. Retirement Mortgages
These are long-term mortgages designed to be repaid from your retirement income.
15. Retirement Interest Only Mortgages
Similar to a standard interest-only mortgage, you make regular payments to cover the interest, and the loan is repaid when the property is sold. These equity release plans can provide a financial boost in your later years, allowing you to enjoy retirement with peace of mind. It’s important, however, to seek professional advice
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