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Lifetime Mortgages Warwickshire
Types of Equity Release…
There are 2 types of equity release. Home Reversion Schemes and Lifetime Mortgages. Home Reversion Schemes involve selling all or part of your property for a specific sum. You then “rent” your home for a nominal fee. These types of schemes are very few and far between. Without doubt the most popular type of equity release is something called Lifetime Mortgages. These are very similar to your standard residential mortgages and just sit as a first charge against your property, meaning you still own your property 100%.
What is a Lifetime Mortgage?
A Lifetime Mortgage is a form of equity release specifically for homeowners over the age of 55 to access some of the equity tied up in their home. You can have a lump sum option or a drawdown mortgage. This means you do not have to take the whole amount in one go. It also means you are only being charged interest on the amount actually taken. Although you are not contractually obliged to make payments you do have the option of doing so if you wanted to reduce the roll up effect of the interest. The mortgage would normally be paid back on death or entering long term care.
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