Equity Release in Dorset

PUBLISHED: 19 January 2023
DISCLAIMER: The information in this blog post may be outdated and may not reflect current financial practices or market conditions

What Is an Equity Release in Dorset?

Equity release is a financial product that allows homeowners to access the equity (or cash) tied up in their homes while they continue to live there. There are two main types of equity release: home reversion and lifetime mortgages. With a home reversion plan, the homeowner sells a percentage of their home to a provider in exchange for a lump sum or regular payments; Barrett Mortgages does not advise on this mortgage. With a lifetime mortgage, the homeowner borrows money against the value of their home. The loan gets repaid plus interest when the property is sold or the homeowner dies. Additionally, it is important to consider the impact on inheritance, as equity release plans can reduce the amount of money passed on to beneficiaries.

What Is an Equity Release in Dorset

Benefits of a Lifetime Mortgage

There are several benefits to a lifetime mortgage:

It provides a lump sum of cash that can be used for any purpose, such as home improvements, paying off debts, or funding a dream vacation.

It does not require monthly payments, so homeowners can use the cash as they see fit without worrying about making regular payments.

Interest on the loan is typically rolled up and repaid when the property is sold or the homeowner dies, so it does not affect the homeowner’s cash flow.

Many lifetime mortgages come with a “no negative equity guarantee” which means that the amount borrowed will never exceed the value of the property, even if the value of the property decreases.

However, it’s important to consider the long-term impact on inheritance. We can tell you everything you will need to know about this.

What Other Services Do We Provide?

Our services provide you with the best advice and knowledge to make your property purchasing experience as easy as possible.

We can help with first time buyer mortgages; we are able to advise on this and tell you the best ways for you to be able to get the property you want. We can also help with buy to let mortgages, if you are thinking of buying a second property, we can advise on the best ways to do it so you get the most income from the property you will be renting out. Explore our website to find out more.

Get In Contact for Equity Release in Dorset

Dorset’s residential and commercial mortgage experts.

At Barrett Mortgages, our friendly advisors are always by your side when it comes to buying and mortgaging. We are an expert mortgage brokerage offering unparalleled service to our clients and partners. Whether you are looking for the best deal for your perfect property or are having difficulty obtaining a mortgage, we are happy to help!

Have any further questions? Please feel free to get in touch with our mortgage advisors by calling 01202 733809 or use our contact form. You are also welcome to pop into our office based nearby on Ashley Road in Poole, Dorset. Take a look at our Google Review Page here!

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