A Guide to Equity Release Mortgages
The value of your home minus any noticeable mortgage on it can be described as your ‘equity’. Using a course of action called equity release, you can release some, or all, of the money you have tied up in your home. If you go ahead with an equity release mortgage then you receive a tax-free cash lump sum or additional income, which you can use in any way that you choose (home improvements, vacations, paying off debts, help family, etc.). You get to stay in your home for the remainder of your life, or until you move into long term care.
If you are seriously interested in doing this, then you should get independent advice, as although it can provide you with financial freedom, it is not always the right decision for everyone. When you contact a company who arranges equity release mortgages, they will position a free no-obligation consultation for you with one of their advisors, who will talk you by the options obtainable and will make recommendations.
Your equity release advisor will explain in layman’s terms exactly what is involved and will provide you will a report that you can look by at your leisure. Their report will state what they think is the best course of action for you to take, the reasons why it is appropriate for you, all the facts and figures, and any costs or charges associated with the plan.
You do not need to give your advisor an immediate decision. If you do decide to proceed, then simply contact them and tell them so. They will take care of all of all the paperwork for you and will keep you updated as to what is happening at any given time. They will speak to your lawyer and plan provider on your behalf to make that sure everything is going ahead smoothly, right by to the moment that you receive your money.