Equity release refers to a range of products that give you access to the equity, that is the cash that is tied up in your home, or when buying a new property, if you are over the age of 55. The loan, plus interest, doesn’t have to be paid until the last borrower dies or moves out of the home into long-term care. The amount that’s available to you will depend on your age and property value, as well as other factors like health or lifestyle. You can take the money you release as a lump sum or in several smaller amounts or as a combination of both. Money released with a lifetime mortgage is tax free.
There are a number of reasons you may want to consider equity release; to repay debts, help out family members get on the property ladder, lifestyle, cover the shortfall of buying a new property, home improvements or funding care in the home.
The plans available today offer flexible payment options if required, therefore you can opt to pay the interest on a monthly basis to avoid the initial debt increasing, ad-hoc payments to help reduce the roll up of interest or no payments at all. All of the plans that Paisley Mortgages offer have the safeguard of the no negative equity guarantee. It means that you never need to be worried about passing debt on to your family as you will never owe more than your house is worth.
Equity Release Plans, also known as Lifetime Mortgages, are complex and you must seek professional advice before making any decision.
A lifetime mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits.
Your home may be repossessed if you do not keep up repayments on your mortgage.
“The plans available today offer flexible payment options if required.”