Equity Release Schemes
Description
Equity Release schemes provide an option for releasing capital
from your home without having to move or make additional mortgage payments.
Eligibility
Equity Release Mortgages are usually available to applicants between
the ages of 60 and 85. You may be struggling to meet current repayments to creditors
due to a lack of disposable income possibly as a result of redundancy or retirement.
Advantages
- Releasing a cash lump sum from equity within your property enables
you to settle outstanding debt with your creditors
- For as long as you remain in your property you do not need to make any repayments on your loan
Disadvantages
- The Equity Release Mortgage is secured on your home and is repayable
from the proceeds from the sale of your home which will reduce any inheritance
to next of kin.
- The legal charge secured on your property is normally calculated as a percentage
of its current market value, hence you will not benefit from price rises on
that part of the equity secured in the legal charge.
