A Lifetime Mortgage involves taking a type of mortgage that does not require monthly repayments. You retain ownership of your home and interest on the loan is compounded or 'rolled up' (although with some plans you can opt to make monthly repayments if you wish).
The loan and the rolled up interest is then repaid by your estate when you either die or move into long term care. If you are part of a couple, the repayment is not made until the last remaining person living in the home either dies or moves into care, meaning that both you and your partner are free to live in your home for the rest of your lives
Lifetime Mortgages account for 99% of Equity Release products.
There are now numerous variations on lifetime mortgages available.
These will include lump sum, interest serviced, drawdown lifetime mortgages and enhanced mortgages, and the market is growing all the time.
If you are thinking about Equity Release, it is vital that you take, fair and balanced advice, so that you, and your family are fully informed.
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Home Reversion Plans
A Home Reversion Plan allows you to access all or part of the value of your property while retaining the right to remain in your property, rent free, for the rest of your life.
With a Home Reversion product the provider will purchase all or part of your house taking into account your age and your health and will provide you with a tax free cash lump sum (or regular payments) and a lifetime lease, guaranteeing you the right to stay in your property rent-free for the rest of your life.
There is no day-to-day interference and no restrictions on treating the house exactly as before; as a private home to live in freely.
The Equity Release Council
Over the course of 25 years, the Equity Release Council has continued to represent the equity release sector, and exists to promote high standards of conduct and practice in the provision of advice on equity release which must have consumer safeguards at its heart.
These standards and safeguards have allowed the sector to grow, giving financial advisers and their customers confidence in the products, dispelling myths about equity release, and educating the public about the potential to access the wealth in their home for a variety of uses.
KRD Financial Advisers Limited are members of The Equity Release Council.
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