Equity Release & Lifetime Mortgages
Equity Release & Lifetime Mortgages
Aged 55+ and want to unlock the equity in your property?
Aged 55+ and want to unlock the equity in your property?
An equity release mortgage is a type of loan that allows homeowners to access the equity in their property without having to sell it. Some reasons to release money can include:
An equity release mortgage is a type of loan that allows homeowners to access the equity in their property without having to sell it. Some reasons to release money can include:
For more information, advice or a quote fill in the form with your details and we will contact you.
For more information, advice or a quote fill in the form with your details and we will contact you.
Benefits of an Equity Release Mortgage
An equity release mortgage is a type of loan that allows homeowners to access the equity in their property without having to sell it.
Unlike traditional mortgages, equity release mortgages typically do not require borrowers to make monthly payments. Instead, the loan is repaid when the property is sold or the borrower passes away.
Equity release mortgages can be structured in a variety of ways to meet the needs of individual borrowers. For example, borrowers can choose to receive a lump sum payment, regular payments, or a combination of both.
The funds released through an equity release mortgage are generally tax-free, enabling you to maximise their financial resources without incurring unnecessary tax obligations.
With an equity release mortgage, homeowners are able to retain ownership of their property and continue to live in it for the rest of their lives.
Some equity release mortgages offer features that allow homeowners to protect a portion of their property's value to be passed on as inheritance to their beneficiaries.
The released equity can be utilised as desired, whether to supplement retirement income, finance home improvements, support family members, or fulfil lifelong dreams, offering the freedom to enjoy newfound financial flexibility.
How much can you borrow?
Determining your borrowing amount for an equity release mortgage involves several key factors. These include your age, property value, condition and location, health and lifestyle, and prevailing interest rates.
YOUR AGE
Most equity release mortgage providers require that borrowers be at least 55 or 60 years old. The exact age requirement can vary depending on the provider.
PROPERTY VALUE
The property being used as collateral must meet the minimum value requirements set by the equity release mortgage provider.
EQUITY AMOUNT
Borrowers must have a certain amount of equity in their property, which is the difference between the property's value and any outstanding mortgage or other debts secured against the property.
HEALTH & LIFESTYLE
Some equity release mortgage providers may ask about the borrower's health and lifestyle as part of the application process. This can affect the amount of equity that can be released.
Percentage Released depends on your age
Age 55+ | age 60+ | age 65+ | age 70+ | age 75+ | AGE 80+ |
|---|---|---|---|---|---|
23%
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| 28%
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| 33%
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| 38%
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| 44%
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| 54%
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|
It's important to note that these percentages are approximate and can vary between lenders. Additionally, other factors such as the property's value, condition, and location can also influence the specific percentage offered. Consulting with a financial advisor or specialist in equity release can provide you with more accurate information based on your age and individual circumstances.
Equity release is a financial product that allows homeowners, typically aged 55 or older, to access the equity tied up in their property while still being able to live in it.
A lifetime mortgage is the most common form of equity release. It allows you to take out a loan secured against your property, with interest accruing over time. The loan, along with the interest, is typically repaid when you pass away or move into long-term care.
he amount you can release depends on various factors such as your age, property value, and health. Typically, you can release between 20% and 60% of your property's value.
Yes, with a lifetime mortgage, you retain full ownership of your home. You have the right to live in it until you pass away or move into long-term care.
No, you don't need to make regular repayments. The loan, including the accrued interest, is repaid when your home is sold after your death or move to long-term care.
Yes, you can generally move your lifetime mortgage to a new property, provided it meets the lender's criteria. This is known as "porting" the mortgage.
Interest rates on lifetime mortgages can vary depending on the lender and the specific product. We compare rates from different providers to make sure you're getting the best options.
Interest rates on lifetime mortgages can vary depending on the lender and the specific product. For more information, please get in touch so we can advise you accordingly.
Yes, there are alternatives such as downsizing to a smaller property or considering other forms of borrowing. These options may be more suitable depending on your circumstances.
Yes, equity release is regulated by the Financial Conduct Authority (FCA) in the UK. It provides consumer protection and ensures that lenders and advisors meet certain standards.
Common types of equity release mortgages
Some of the types of equity release
Interest roll-up mortgage
Can be paid as a lump sum or a regular amount and interest charged is added to the loan. This means you don’t have to make any regular payments. The amount you borrowed, including the rolled-up interest, is repaid at the end of your mortgage term when your home is sold.
An interest-paying mortgage
Lump sum and make either monthly or ad-hoc payments. This reduces, or stops, the impact of interest roll-up. Some plans also allow you to pay off capital, if you so wish. The amount you borrowed is repaid when your home is sold at the end of your mortgage term.
Retirement Interest-Only (RIO) Mortgages
RIO (retirement interest only) mortgages are effectively standard home loan deals with one key difference: the mortgage does not have a set end date and carries on until “a specified life event” is triggered – ie, the borrower’s death or the date they move into a care home. Until then, they continue to pay the interest each month and the loan is ultimately repaid from the sale of their property.These plans are still based on affordability into retirement and are usually stress tested on 1st death for a couple (based on the spouse with the highest income levels passing away first) and this makes it a non-starter for many people. On top of this there is no real flexibility in repayments and is more of a one off lump sum.
Do you have more questions?
To find out more about equity release mortgages including:
To find out more about equity release mortgages including:
Please complete the form opposite and we will be in touch
Please complete the form opposite and we will be in touch
At DS Mortgages we offer both RIO mortgages and lifetime mortgages on a referral basis only via our trusted partners Viva Retirement Solutions and their team of experienced equity release and later life lending advisors.
A lifetime mortgage is a long term commitment which could accumulate interest and is secured against your home.
DS Mortgages is an appointed representative of Stonebridge Mortgage Solutions Limited which is authorised and regulated by the Financial Conduct Authority.
Proprietor: Darren Shepherd
