Mortgage Sorter | Equity Release | Lifetime mortgages explained

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Equity Release / Lifetime mortgages explained

A lifetime mortgage is a type of equity release plan which allows you to borrow against your home.

Most providers will lend between a fifth and a half of its value.

You will be charged interest on the debt the annual rate is likely to be a percentage point or so higher than for a similar ordinary mortgage and is usually set at the beginning for the entire term.

The advantages

The loan does not need to be repaid until you die, and with most plans you won't even be expected to make monthly interest repayments, as this will roll up and be added to the original debt.

Some providers will allow you to draw down cash as you need it up to the agreed maximum and pay interest only on what youve taken.

The disadvantages

The downside is that you will be charged interest on the interest, which means it will soon mount up in fact, in ten years your debt can nearly double.

If you borrow half your property's value, assuming this remains static, you or your heirs could be left with virtually nothing.

Your debt should never be greater than your property's value, so you won't owe more than this.

But if its value does rise, and you live longer than ten years, your rolled-up interest bill will continue to eat into your loved ones inheritance.

To help you decide if equity release is for you, read Choosing an equity release plan and Questions to ask equity release providers.

If you are interested in finding out how much equity release you could get for yourself, the calculator below will give you a rough idea of what is possible.

To get a more precise figure the best thing to do is to talk to an Equity Release Specialist. To contact a recommended one simply click the "Next" button - after entering your figures - then fill out the quick contact form. You will be contacted soon for a free, no obligation quote.

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Equity Release

Age of the youngest homeowner?
Estimated value of the property?
Total outstanding mortgage or secured loan on the property?

Approx. amount available via equity release: Minus any outstanding mortgage or loan:	£ - £
Potential Cash Available: (May vary based on personal circumstances)	£
Equity release is only available if the youngest homeowner is 55 or over. The best option for those under 55 is a remortgage. Click here now to get remortgage advice and a quote
There is not enough equity available in your property for Equity Release. Your best option is a remortgage. Click here now to get remortgage advice and a quote
There is not enough equity available in your property for Equity Release.

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Step 2 of 2

Your details

First name:	Last name:

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E-mail address:	Best time to call you:


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