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Equity
Release General info
How
equity release works
Equity
release plans explained
Home
reversion schemes explained
Lifetime
mortgages explained
Types
of equity release plan
General Info
Already a Homeowner? Want to Release
Some Equity?
If
you are already a homeowner - with or without a mortgage
- then you might want to release some equity
from your home to give you a cash lump sum.
This
means that if you have paid off a significant amount
of your mortgage and/or property prices have risen,
you can benefit from some of the "profit"
that is locked into your house without having
to sell your home.
Lenders
provide a variety of packages for doing this, but they
are generally described as "equity release"
mortgages.
Typically
you will be able to borrow up to 95% of the equity in
your home, given to you in a lump sum which you then
pay back like a normal mortgage. This can be used to
pay for home improvements, lifestyle changes, home repairs
– almost anything, really.
WARNING
Be very careful when doing an equity release mortgage.
For some reason they are not regulated
by the Government. Many experts are worried about this
new trend and there are concerns it could become yet
another personal finance scandal.
Watch
out for the following
- Make
sure that your proposed equity release plan has a
negative equity guarantee. This means that should
the value of your property decrease then the debt
will also decrease proportionally.
-
Make sure that you can keep full ownership of your
home until your death.
-
Make sure that you are allowed to move home after
taking out an equity release plan.
-
If you are living “in sin” with a partner,
Make sure that you take out a joint plan that makes
the debt reclaimable only after the death of the last
surviving partner.
- Make
sure that any outstanding debt after the sale of your
property will not be passed on to your relatives.
-
Watch out for the extra charges involved, like legal
fees, the property survey and setting up fees or other
admin charges
The
best thing to do is to talk to a mortgage
specialist. We can put you in contact with one here
Read
On / Equity Release Guide
Equity
Release General info
How
equity release works
Equity
release plans explained
Home
reversion schemes explained
Lifetime
mortgages explained
Types
of equity release plan
Finding
equity release provider
Choosing
an equity release plan
Questions
to ask
Complaining
about Equity Release
Read
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of a UK Mortgage
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Mortgage TOP TIPS
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to Z all UK Mortgage Types
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to Buying Home in the UK
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to UK Home and Mortgage Insurance
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of UK Mortgage Terms
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