Equity Release and Lifetime Mortgages
In this article Jim Old from Smith James Mortgages Ltd talks on Equity Release & Lifetime Mortgages -
Equity Release and Lifetime Mortgages
In this current climate many people near to or in retirement are increasingly looking at ways to increase capital and/or income. The Equity you have in your home is its current open market value less any mortgage or other debt you have secured on it. Equity Release is a method of receiving cash as a lump sum or income or both without having to move home. If you are aged 55 or over it may be worth enquiring to find out ALL your options to enable you to make an informed decision.
Lifetime Mortgages
It does what it says on the tin. Lifetime. Draw monies from your home and opt to pay nothing back and continue to live in your home – GUARENTEED There options available on how Lifetime Mortgages can be set up. This will depend on your personal circumstances and future plans.
Equity Release
Sell part or your entire home to a lender but continue to live in the property rent free – GUARENTEED
Both types of plans have advantages and disadvantages. Always worth exploring and you will be very surprised at how user friendly the current products are. All products that carry the ‘Safe Home Income Plans’ (SHIP) logo are bound by the SHIP code of practice.
ALL Lifetime Mortgages and Equity Release products are fully regulated with the availability of The Financial Services Compensation Scheme. A full review is always necessary as current/future benefits have to be considered along with tax advantages/disadvantages and council tax benefits for those on low income.
We always expect this course of action to spread over several meetings until you are totally ready to make a decision along with input from your family if you wish. In fact, consultation with family will always be encouraged.
Article Courtesy of Jim Old @ Smith James Mortgages
0191 4615048
