Some lenders will consider your health conditions, and various lifestyle factors and offer you lower interest rates or increased loan amounts. It is possible to achieve a maximum release of If there is a small shortfall, you could also look at taking out unsecured borrowing to bridge the gap.
I wouldn't suggest this to everyone; however, there are occasions where it may be the most appropriate way to proceed. It could be the difference between being able to stay and having to sell your home.
Regardless whether you have a mortgage or not, any other secured borrowing will likely need repaying as part of your equity release. Secured loan lenders are usually unhappy with sitting as a second charge to an equity release. This is because the equity release lender will be the priority charge, and the balance will likely be increasing if you do not make monthly repayments. Therefore the secured loan lender could have reducing security in your home over time.
If you have a secured loan, I would suggest either repaying it with the equity release or discussing the option of changing the loan to unsecured. Your existing loan lender may be able to change your borrowing to unsecured. You may even find there is very little difference to your monthly payment to them after switching.
If you do not know if your loan is secured or unsecured, you can find out by checking your properties title deeds with HM Land Registry. You can complete this directly with them for a small fee, or we can provide a copy to you free of charge we are happy to pay the fee on your behalf.
Should your loan be secured it will need repaying, but it is unsecured then you do not need to repay it to get equity release. While it is not compulsory to pay off unsecured debt as part of the process, it is quite common for clients to pay off unsecured debt as part of an equity release. Repaying debt which requires mandatory monthly payments frees up extra cash flow each month, and can be a massive help if you are struggling to make the payments.
Each situation is different though, so I suggest discussing your options with your equity release advisor. As time passes, lifetime mortgages are becoming more and more flexible. Many of the features that you are used to on a standard residential mortgage are now commonplace with lifetime mortgages.
The simplest way to find out how much equity release you can achieve is to use our equity release calculator. Once you have used our equity release calculator, I strongly suggest that you request your free equity release report. The report shows you the amounts that you can release and the associated interest rate that you are likely to receive.
When deciding on the level of funds that you require, you will need to think about how much you will want to be paid into your bank account once any essential costs and payments have been paid. These payments will be deducted from the equity release funds, and the remainder paid into your bank account. Therefore to ensure you receive the cash required in your bank account at completion, you also need to include your outstanding mortgage and any setup fees.
Your equity release advisor should be discussing all of this with you as part of their advice! On the day that your equity release application completes you will not have to think about paying off your mortgage. The lender's solicitors will clear your existing mortgage.
They will also use the equity release funds to pay any other lenders with whom you have an outstanding secured loan. The remaining funds will be forwarded to your solicitor. Your solicitor will then deduct their fees, before transferring the remaining funds into your bank account. This means that the funds you finally receive are yours to spend and will not need to worry about paying out any further costs.
If you have an existing lifetime mortgage, there are options to borrow additional funds. You can either:. The first step will be to find out how much you owe your current equity release lender. From here, your equity release advisor will be able to guide you through the process to find out which option is best for you.
If you have an existing equity release and wish to borrow additional funds, book your FREE consultation. Call us on or use our online form to book your FREE consultation. While a qualified equity release advisor has written this guide, it is not intended to be used as financial nor legal advice and should not be relied upon.
To understand the full features and risks of an Equity Release plan, ask for a personalised illustration. I am glad that you found my article helpful. If I can help provide you with financial advice, please contact us to arrange your free consultation. Money Release Limited is registered in England No. FCA registered number Contact Money Release Simply click on the links below London: Portishead: Email: info moneyrelease.
Can I get Equity Release with a mortgage? See the full article below. Therefore, the percentage of your property that you own will reduce as time goes on. So, the longer you live, the less of your property you will own. You get much less than the market value of the share you sell. This is because the home reversion company may have to wait several years before they can cash in their share. So, the older you are when you sell a share in your home, the more money you will get.
Due to different life expectancies, a single man of the same age would receive more money than a single woman, as he is expected to live for a shorter time. A couple would receive less, as it is expected that one of them will live longer than both would if they were both single. You cannot change or reverse this kind of contract because you have actually sold part of your home. However, you may be able to negotiate with the home reversion company to buy back the share you sold them and you can usually sell your home on the open market by coming to agreement with the home reversion company.
This would allow you to cash in the value of the share of your home you still own. When you die, your estate may be given the option to buy back the percentage that the home reversion company owns. There are two types of lifetime mortgage, where you borrow money against the value of your home.
These are:. One of the conditions of getting a lifetime mortgage is that you have to pay off any existing mortgage on your home. Interest rates on lifetime mortgages are usually considerably higher than standard mortgage rates. With a roll-up mortgage, you make no repayments and you continue to own and live in your home.
Interest is charged on the money you borrow and added to the original loan amount. Each month, you are charged interest on what you have borrowed plus the interest added from previous months. The longer a roll-up mortgage lasts, the more money you will owe. You usually repay the loan from the proceeds when your home is eventually sold — following your death or when you move out.
However, there is a risk that when the time comes to sell your house, there may be no money left over after paying back the mortgage. With an interest-only lifetime mortgage, you pay interest on the loan each month at a fixed or variable rate, so the amount you owe will not increase over the term of the mortgage. However you will have to make repayments:. The repayments might seem manageable. However, if you are on a variable interest rate and your rate increases, you may find it more difficult.
The older you are, the higher the percentage you can borrow. There will probably be an upper and lower limit on the amount you can borrow and there may be a minimum property value. Depending on the lender, they may allow you to take your loan:.
If you are approved for a large amount and take it all at once, you will be charged interest on the whole loan. If you take the money in smaller amounts, you will only be charged interest on the amount you have taken. However, you may be charged a fee for each instalment you take, so you need to take this into account. If you are making the repayments yourself, you will have to meet a minimum annual income requirement to qualify for the mortgage.
The money will be paid to you as a lump-sum. You are free to do what you want with the money. But bear in mind that the interest you are charged is based on the amount you borrow.
If you take more than you need and leave it in a low-interest account you could end up paying more in interest on the money you borrowed than you earn in a deposit account. Your debt will also be larger than it needs to be. Also do not take out a lifetime mortgage in order to fund investments.
This means that you or your estate will never have to pay more than the proceeds of your home when it is sold, even if the amount of your mortgage is more.
You continue to be the legal owner of your property. Search Please enter a search term. Helpline: 01 Sign up for regular updates on your consumer rights, personal finance and product safety. Your Email: Subscribe. Subscribe to our Newsletter. Equity release Equity is the difference between the current value of your house and the amount you owe on it.
The conditions of equity release include that you cannot have an existing mortgage on your home and that you have reached a certain age, for example 60, to avail of the loan Equity release schemes are different to topping up or increasing your mortgage. Equity release schemes Why would you use equity release? Risks and alternatives Choosing an equity release scheme is not something you should enter into lightly.
If you are considering an equity release scheme, get independent legal and financial advice first and consider the alternatives, including: selling your home and moving to a cheaper or smaller one getting a different type of mortgage if you have an income to meet the repayments renting out one or more rooms transferring ownership to a family member in return for the cash you need and the right to live in the property for life.
Be sure to get independent legal advice if you are considering this option Getting legal advice Before you make any decision about an equity release scheme, make sure you get independent legal advice from your solicitor. We'll use your address to look up your property ahead of our call to assist you with your enquiry.
To find out how much you could receive, and to get a call back to discuss the product details, please complete the form. Details of how we process your information can be found in our privacy policy. You can opt out of marketing at any time be emailing LGFAoptout landg. By clicking 'Get result' and submitting this form you consent to us calling you about your results and how our Lifetime Mortgages may work for you. This is an estimate. The amount you can release depends on your property, its value and your individual circumstances.
Speak to an adviser to find out how much you could release. One of our Customer Service Agents will contact you with indicative interest rates based on your information. If you shared your phone number you can also expect to receive a call from us in the next day or two. Or an email will be with you shortly. Monday to Sunday am - pm. We may record and monitor calls. A lifetime mortgage is a loan secured on your home.
Interest is charged on the loan plus any interest already added. This means the amount you owe can increase quickly over time. There may be cheaper ways for you to borrow money. A lifetime mortgage will reduce the equity left in your home and the value of any inheritance. A lifetime mortgage is usually repaid when the last borrower dies or moves out of the home and into long term care. You can receive the money as one lump sum or as a series of smaller amounts over time to suit you.
Depending on how you need the money, you can receive it as a one off cash lump sum or as a series of smaller cash sums as and when you need it. The option to take lump sums in the future is not guaranteed and will depend on whether you're still eligible to borrow more money.
There's an option to pay the interest off as you go. Ask our Customer Service Agents for more information. You may be able to borrow between and. Total remaining:. If you're interested in a regular income, you can select this to be paid for a set number of years.
Once the fixed income term ends the monthly income will stop but interest will continue to roll up until the lifetime mortgage is repaid. You can take more than this. It's your choice. You've chosen a and an initial lump sum of. That means you could receive a monthly income of up to for.
This is an estimate of the amount you may be able to release. The amount you can release depends on your property and your individual circumstances. Taking a lifetime mortgage could affect your eligibility for state benefits. We'll be in touch shortly if we haven't already called. In the meantime, consider these products. If you'd like to take a lump sum, or a series of smaller lump sums, without having to make interest payments, take a closer look at this option. If you'd prefer to take a lump sum, or a series of smaller lump sums, and pay off some or all of the interest as you go, take a look at this option.
If you'd like to take a lump sum, or a series of lump sums, and pay nothing until you die or move into long term care, select this option. If you'd prefer to take a lump sum, or a series of lump sums, and pay off some or all of the interest, this could be right for you. One of the main things people want to know about lifetime mortgages is how much the loan will cost. There are two parts to this answer:. Lifetime mortgage interest rates: This is the rate of interest charged on the loan, which affects the total amount you need to pay back.
Costs involved in releasing equity: These are the costs you need to pay during the process of releasing equity with a lifetime mortgage, for example arrangement fees and solicitors fees. We don't charge an advice fee. To speak to us about a lifetime mortgage, call our advice team on the number below. For any other enquiries please get in touch via our contact us page. Monday to Sunday am - pm We may record and monitor calls.
You can opt out of marketing at any time by emailing lgfaoptout landg. Lifetime Mortgages a type of equity release and Retirement Interest Only Mortgages are sometimes grouped together as 'later life mortgages' or 'later life lending' products.
While similar and often used for similar purposes, these are different products and it's important to understand the differences between the two. Find out more about our range of later life mortgages, or use our simple tool to find out which product might best suit your needs.
A Retirement Interest Only mortgage is a loan secured against your home. You have to pay the interest off monthly, but the full amount of the loan isn't usually repaid until you die or move out of the home into long-term care.
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