If you are a UK homeowner aged 55 or over, IMS Independent Mortgage Solutions may be able to help you access money tied up in your home.
What is Equity Release?
‘Equity’ is the market value of your home, less any outstanding mortgage or other debt secured against it. If you’ve lived in your home for a long time, you’ll have probably seen local house prices rise steadily, so the amount of equity you now have could be quite substantial.
‘Equity release’ means getting some of this money out of your home and into your pocket, without having to sell up and move out. You can continue to live in your own home for the rest of your life or until you move permanently into long-term care.
To be eligible for equity release you must be aged 55 or over with a UK home worth at least £70,000. Minimum age, property value and property criteria vary between providers.
Types of Equity Release
Equity release is available in two ways: as lifetime mortgages and home reversion plans. The guide below shows the difference types of lifetime mortgages.
A lifetime mortgage enables you to release a tax-free cash lump sum from the value of your home.You will continue to own your home completely and retain the right to live in it for the rest of your life or until you move permanently into long-term care.You can choose to pay some or all of the interest each month or make no monthly payments and roll up the interest into the loan amount. The amount borrowed plus accrued interest is usually repaid from the proceeds of the sale of your property when you die or move permanently into long-term care.
It is important to note that the loan is secured against your home.
Enhanced Lifetime Mortgage
An enhanced lifetime mortgage could allow more cash to be released from your property than a standard lifetime mortgage. This is dependent on lifestyle and medical factors that are taken into consideration, which include health and lifestyle issues such as weight, blood pressure, medical conditions and whether or not you smoke. It is important to note that, like standard lifetime mortgages, the loan is secured against your home.