Our equity release specialist will look at a number of lenders from across the market and compare products to ensure you have the best product to suit your individual circumstances. When you are looking at equity release mortgages there are two types of mortgages you can get. These are a lifetime mortgage and a home reversion mortgage. The lifetime mortgage is where you take out a mortgage secured on your property provided it’s your main residence while retaining ownership. You might be able to ring-fence some of the value of your property as an inheritance for your family. You can choose to make repayments or let the interest roll-up. The loan amount and any built-up interest is paid back by selling the property when the last borrower dies or when they move into long-term care.
Home reversion is where you sell 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 living in the property until you die, 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 by only selling part of the property. The percentage you retain will always remain the same regardless of the change in property values unless you decide to take further cash releases. When the last borrower dies or moves into long-term care your property is sold and the sale proceeds are shared according to the remaining proportions of ownership.
The things you need to know about equity releases are that they can be more expensive in comparison to an ordinary mortgage. It is also only suited for people who are homeowners and aged 55 or over. 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.
We are a professional finance broker with offices in Poole, Dorset. Providing mortgages for everyone and not just people who need equity release mortgages. We were founded by Darren Barrett in 2009, during some of the hardest market conditions the industry has seen. Our 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 important as we rely heavily on referrals from our clients.