EQUITY RELEASE MORTGAGE
HOME INCOME PLAN

In its simplest terms an ‘equity release mortgage’ which is also known as a ‘lifetime mortgage’, a ‘home reversion’ or a ‘home income plan’ means raising some cash from your home without having to sell or move out. Investment in the family home has been substantially more profitable than any other investments over the last ten years with property prices more than doubling in most areas. The average value of a house in the UK now exceeds £200,000. In addition profit made on a home is tax free and capital returns have dwarfed any other type of investment. However the big question is how to release some of that capital without losing your home or becoming involved in large expenses? People who have retired and are on a modest income are particularly attracted to schemes that use the rising value of their homes, most of which are fully paid with no mortgage commitments, to provide a cash lump sum and to boost their monthly income.

An equity release mortgage scheme works by providing you with a loan secured against the property. This means that you can receive cash as a lump sum or you can receive a monthly income if the cash is invested. The loan company receives payment upon sale of the property or upon the death of the borrower. Most of the schemes that are in operation are available to those aged over 55 years who have substantial equity in a freehold owner occupied property.

The most attractive points to bear in mind with an equity release mortgage scheme are that you can receive cash, an income or both, you don't need to move out of your home, you can reduce potential inheritance tax bills and the income can be used to pay care home bills without the necessity of selling the borrowers home. One thing which must be born in mind is that these schemes often swallow up most of the value of the property upon death and the property cannot be then be left in a will to any potential beneficiaries. In addition if you receive means tested benefits the extra income derived from one of these schemes could mean that you may lose some benefits. It is important that you take expert advice prior to making any financial decisions of this type in order to consider all of the long term implications.

Not all equity release schemes are the same and you should obtain quotes from several financial institutions in order to make comparisons. We operate a searchable database of lenders and we can obtain extremely competitive quotes. Many of the products that we are able to offer do not feature on the High Street and many of our niche lenders are able to offer much better rates than other commercial lenders because they do not have the same expensive overheads. Our telephone operators are available 24/7 to help you or alternatively just complete and send our contact form to obtain detailed information on the best product available to satisfy your needs. Most of our lenders are able to offer very fast decisions and will make an offer in principle once they have all of the relevant information.

Our customers safety and security are of paramount importance to us and to that end we are authorised by the Financial Services Authority (FSA) which was set up by government to regulate financial services including arrangements such as those outlined above for the release of cash from your home. The FSA aims to promote efficient, orderly and fair markets to help consumers achieve a fair deal, to maintain confidence in the financial system and to secure the appropriate degree of protection for consumers.