Equity Release Mortgage

PUBLISHED: 17 June 2021
DISCLAIMER: The information in this blog post may be outdated and may not reflect current financial practices or market conditions

At Barrett Mortgages, we have an equity release service that we can provide you with. What we will do is look at a number of lenders from across the market and compare the products to ensure you are getting the best one suited to your individual circumstances. We will assist you throughout the process, from enquiry to completion, dealing with solicitors, surveyors and any other 3rd party, to ensure the transaction is smooth and hassle-free.

What is an equity release mortgage?

The mortgage will let you access the cash tied up in your home also known as equity. If you are over the age of 55 you can take the money you release as a lump sum or, in several smaller amounts or as a combination of both. When you do this you have two choices you can take out a lifetime mortgage or have home reversion. The lifetime mortgage allows you to take out a mortgage secured on your property ownership. You can choose to ring-fence some of the value of your property as an inheritance for your family. You can choose to make repayments or to just let the interest build up. The loan amount and any accrued interest is paid back when you die or when you move into long-term care.

Then the home reversion option is to sell a part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue to live in the property until you die, rent-free, but you have to agree to maintain and insure it. You can ring-fence a percentage of your property for later use, possibly for inheritance. The percentage you retain will always remain the same regardless of the change in property values unless you decide to take further cash releases. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership.

There are certain aspects of borrowing on an equity release mortgage that requires careful consideration, such as the added interest to your loan and hefty early repayment charges, should you wish to clear the debt early. Equity release can be more expensive in comparison to an ordinary mortgage and the interest rates can be higher than an ordinary mortgage and your debt can grow quickly if the interest is rolled up.

Barrett Mortgages is a professional finance broker with offices based in Poole, Dorset. We provide mortgages for everyone, so not just equity release but first-time mortgages, buy to let mortgages and more! The company was set up by founder Darren Barrett in 2009, during some of the hardest market conditions the industry has seen. The unparalleled, clear, trustworthy, honest and upfront service offered by Barrett mortgages has meant our business has thrived during these times when clients have needed more individual and specialist help. All of our staff are fully qualified, experienced and chosen based on their keenness to provide the best possible experience for our customers. We promise no pushy hard sales tactics and have built a strong reputation which is very important to us as we rely heavily on referrals from clients.

To find out more about this, please get in contact with us and our team will be able to help you with all of your mortgage needs.