Equity release allows you to release some of the equity in your property without the need to move. You can do this via several policies that I will advise you on. They work slightly differently to traditional mortgages; how much you can borrow depends on how old you are and the value of your property, rather than the amount you can afford to pay each month.
There are 2 types of Equity Release, Lifetime Mortgages and Home Reversion Plans. A Lifetime Mortgage is where you release equity from your home and have the option to roll up the mortgage interest or make monthly payments to service the interest. A Home Reversion Plan is where you sell your property to a company for a reduced sum and remain in the property with lifetime tenancy. You pay no interest during this time and the company sell the property once you have passed away or moved into long term care.
At Hampton Home Finance, we do not advise on Home Reversion Plans.
Accessible to mortgage holders over 55 years, The mortgage will be reimbursed alongside any charges when you pass away or move into long term care, utilising the money created from the sale of your home.
A lot of people are using Equity Release to clear their existing Interest-only mortgage, which has come to the end of the term.
Yes, you can use our Equity Release for home and garden improvements.
For some people, it allows them to upgrade their existing homes or to undertake essential revamping.
If you have money tied up in your home, and you’re looking for a way to fund a more comfortable retirement, Equity Release could be a way to boost your finances.
An Equity Release is a type of mortgage whereby the lender places a charge against your home. You still remain the owner and benefit in any potential capital growth.
With an Equity Release you are covered by a no negative Equity Guarantee. Therefore, however long you remain living there, the mortgage debt will never increase passed the value of the property.