When it comes to deciding whether to release equity from your home, you should always seek professional advice and guidance. Essex Equity Release Advice Centre work closely with every client to ensure that they receive all the information they need to make the most of their property. We are part of the family run company One Call Financial Advice Centre, established in 1995, and have been providing equity services since 1999. As members of several professional bodies, you can rest assured that any advice provided by us will be in accordance with regulations.
We are proud of the work that we have been able to complete over the years and use our experience to work with you. Our equity release consultant and proprietor Ron Radway has expert knowledge on life mortgages, home reversion plans, and years of personal life experience.
As committed members of the Equity Release Council, CII (Chartered Insurance Institute), PFS (Personal Finance Society), IERAA (Independent Equity Release Adviser Alliance), and the Later Life Academy, we have endless guidance to give. For more about how we can help you, please do not hesitate to get in touch today.
Giving our customers the support and advice they need to make the right choice about equity is important to us. We work with you to talk through your questions or concerns and aim to support you in the decision that you make.
Some of the guidance we can give is based around:
- Home reversions
- What the money released can be used for
- How to do this
- Eligibility for the scheme
- Equity release
- Lifetime mortgages
- Information about equity
About Equity Release
When it comes to equity release, there are two main types: lifetime mortgages and home reversion. The most popular of these two choices is a lifetime mortgage, but it is worth considering both to decide which plan suits your needs better. The minimum age for when you can take out a lifetime mortgage is 55 and for home reversion it is typically between 60 and 65.
Before deciding whether the scheme is right for you, there are a few things to consider. When taking a plan out you need to remember that it is for the long term. There are some flexible plans available, but you should read the terms and conditions of these. Getting advice from experts is crucial and seeking independent legal advice is mandatory, giving you peace of mind that any decisions made will be conducted in accordance with guidelines and only once the full picture has been determined.
What Are Lifetime Mortgages?
A lifetime mortgage is a type of equity release which allows the homeowner to take out a secured loan on their property in exchange for cash. This is the most popular scheme and repayments are not required until the homeowner enters long-term residential care or dies. The amount of loan depends on the age of the applicant and value of the property, and some of this can be safeguarded for later expenses.
There are two key types of lifetime mortgage, an interest roll-up mortgage and interest-paying mortgage. An interest roll-up gives you a lump sum or regular paid amount and you will be charged interest which is then added to the overall loan. No regular payments are required and any amount borrowed, including interest, will be repaid once the home is sold at the end of the mortgage term. Interest-paying means that you will receive a lump sum but make either monthly or ad-hoc payments. One positive of this is that it will reduce the roll-up of interest and some plans will give you the chance to pay off any capital.
Considerations To Make
There are some things that are worth considering before you decide to take out a lifetime mortgage. Deciding whether this mortgage is right for you will depend on your age and personal circumstances. Taking out a lifetime mortgage can impact on the inheritance you are able to leave, so it is worth considering this. If you decide to opt for a roll-up mortgage, then you should be aware that the money you owe can accrue very quickly. This can result in you needing to repay more than the value of your home, unless you have a no-negative-equity guarantee.
We are on hand to answer any questions you have and work out whether a lifetime mortgage is the right choice for you.
Using Your Money
A major reason for releasing equity from a property is to increase the money that you have as an individual. Once you have this money, it is free to be used as and when you need it. Having additional cash reduces stress and adds personal security to help reassure you.
Some of the most popular uses for equity are:
- Repaying mortgages
- Clearing debts
- Buying a new car
- Improving the home
- Medical operations
- Home care
- Disability living aids
- Subsidising or adding to pension
- Assisting elderly family members
This is not a definitive list and your money can be used for whatever you need it for.
Brentwood and the Surrounding Area
With an estimated population of around 79,000, the town of Brentwood is a popular location for commuting to London and is twinned with both Roth in Germany and Montbazon in France. There are plenty of things for everybody to enjoy in the area, including a trip to the Hopefield Animal Sanctuary, Weald Country Park, and Warley Place Nature Reserve. If you require equity services including advice, then please contact us today at Essex Equity Release Advice Centre.
Get In Touch
For more information about the equity services we offer including guidance on which equity release plan is right for you, do not hesitate to get in touch. You can fill in our online contact form today or feel free to phone on 01268 799211.