Equity Release Mortgage in Poole
What is an Equity Release Mortgage?
An equity release mortgage is a type of loan that allows homeowners to access the equity in their home. The loan is repaid when the home is sold or the borrower dies. Equity release mortgages can be used to supplement retirement income, make home improvements, or pay off debts.
There are two main types of equity release mortgages: lifetime mortgages and home reversion plans. Lifetime mortgages are the most common type of equity release mortgage. With a lifetime mortgage, the borrower retains ownership of their home and makes no monthly payments. The loan plus interest is repaid when the borrower dies or moves into long-term care. Home reversion plans involve selling all or part of your home to a provider in exchange for a lump sum or regular payments. The provider owns your home until you die or move into long-term care, at which point they sell it and keep the proceeds.
How Does an Equity Release Mortgage Work?
An equity release mortgage is a type of mortgage that allows homeowners to access the equity in their home. The equity is the portion of the home’s value that is not currently mortgaged. With an equity release mortgage, homeowners can either take out a lump sum of cash or receive monthly payments against the equity in their home.
Equity release mortgages are typically only available to homeowners who are over the age of 55. In some cases, lenders may require that the borrower has a minimum amount of equity in their home before they will approve an equity release mortgage.
The benefits of an equity release mortgage
As people live longer and healthier lives, the idea of using equity release mortgages to supplement retirement income is becoming more popular. These mortgages allow homeowners to borrow against the value of their home without having to make monthly payments. The loan is repaid when the house is sold, either when the borrower dies or moves into long-term care.
There are several things to consider before taking out an equity release mortgage, including the impact on your estate and whether you will be able to afford the repayments if you need to move or go into long-term care. However, if used correctly, equity release can be a helpful way to boost your retirement income.
Get In Contact for Equity Release Mortgage in Poole
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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