What does Equity Release mean?

28th March 2020

Equity release is a way of unlocking a cash lump sum that’s tied up in your home – usually up to 60% of the value of your property – and without having to move. You will normally need to be over the age of 55 to be eligible and you can release the funds as a lump sum or in stage payments or both.

There are two equity release options that should suit most circumstances:

Lifetime mortgage

The most common option, a lifetime mortgage is secured on your home so you can continue to own it and you choose whether to make repayments or allow interest to accrue, which will mean the debt can rise quickly. Depending on your lifetime mortgage product, you may be able to make interest payments. When you die or move into care in the years ahead, the loan and outstanding interest will be repaid.

Home reversion

A home reversion product will entail selling part of all of your home to a provider. You’ll be able to stay in your home until you die and you’ll need to make regular or lump sum payments to the provider as well as maintaining and insuring the property. When you die or move into permanent residential care, your property will be sold although your estate will still retain the proportion of the property you held back at the start.

Equity release can be a complex concept and you’ll need to be sure that you’re getting the very best equity release advice. Talk to our team of expert mortgage advisers about your options and we’ll guide you through the process. Call us on 08454 500200 or click here to make an enquiry.

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Having used charters to secure our first mortgage in 2018, we’ve returned to them to secure our first ever remortgage this year. We had such a great experience with them as first time buyers, that we’ve become back to them again - and I’m so happy we did. This time Robert Ferguson has looked after us to get the deal we wanted. He’s patient, informative and he delivers a service that has been nothing short of excellent. The whole process as been made as stress free as possible, during what is quite an uncertain and unnerving economic time. Rob took us through a number of options in accordance to our needs and found us a fantastic product that we are very happy with. Once application had been submitted, having secured a fantastic rate, we were then looked after by Cara Simpson-Hayter. Cara has been absolutely fantastic and has kept us informed through every step of the application process. She has chased up various parties to get the info we needed and to speed the application along with the lender. Cara is incredibly efficient and effective and has been truly wonderful throughout. Both Rob and Cara have addressed all our concerns and answered ALL our questions (there were a few having only gone through this once before!) leaving us feeling confident and at ease the whole time. Again the service that has been provide has been thoroughly excellent, we couldn’t be in better hands. Thank you so much for making this such a painless process in what is quite a stressful time! We cannot recommend Charter’s enough and we will definitely be using them again in future! Thank you Rob and Cara!!

Oliver & Caroline H

June 2020

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