WHAT IS EQUITY RELEASE?
Equity release is a way of accessing some of the value that has built up in your home. The money
you release is tax-free and can be spent as you wish.
WHAT IS A LIFETIME MORTGAGE?
A Lifetime Mortgage is a type of equity release that is specially designed to allow UK homeowners
aged 55 and over to access the equity that has built up in their home.
If you elect to make no repayments, interest is added to the amount borrowed and is repayable with
the original loan amount when you or your family sell the property that the loan is secured
against, or you go into full time care.
Lifetime Mortgages come with in-built guarantees that mean:
• You never owe more than the value of your home.
• You retain full ownership of your property for life.
• You can move home later if you choose, and take the plan with you.
WHAT IS EQUITY RELEASE USED FOR?
Common reasons include:
• To repay an existing mortgage
• To top-up an income
• To replenish savings
• For home renovations
• To purchase luxury items or holidays
• To help family members – weddings, house deposits
• Early inheritance
• Purchase a second/holiday home
Roll-up Lifetime Mortgage – A lump sum taken with no compulsory repayments during
your lifetime so the interest rolls-up instead and is repaid with the original amount
borrowed from the sale of the property when you pass away or go into full time
care.
Drawdown Lifetime Mortgage – A lump sum is taken originally with a
further amount stored in a reserve to be withdrawn when needed. The reserve
amount accrues no interest until withdrawn, making this a clever money-saving
feature.
Flexible Lifetime Mortgage – This plan type offers the homeowner
the opportunity to make interest and capital repayments during their
lifetime.
Hello, I’m David Bayliss, Director and Adviser for After Fifty Five Ltd. During my career of over 30 yrs, I’ve built my expertise within most areas of Financial and Legal Services.
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