How To Get Mortgages, Re Mortgages and Lifetime Mortgages

Types of Equity Release Mortgage

What types of equity release are available?

There are three main types of lifetime/Equity Release mortgages available.

1) Interest-Only Lifetime / Equity Release Mortgage.

  • You make regular monthly interest repayments.
  • You can pay anything from ¬£25 per month up to the full amount of interest due.
  • Paying some or all of the interest during the lifetime of the plan reduces the amount owed when the property comes to be sold, leaving a greater amount for your loved ones to benefit from when compared to a standard lifetime mortgage.
  • Any interest you do not pay will roll up.
  • The remaining balance is paid off from the value of your estate once the last homeowner on the deed passes away or moves into long term care.
  • If you decide you do not want to make a monthly repayment any more, you can stop and the plan will switch to a Roll up lifetime mortgage.
  • You retain 100% ownership of your home.

2) Roll-up Lifetime / Equity Release Mortgage.

  • No regular monthly repayment to make.
  • Interest will accrue on the amount of cash you choose to release.
  • The amount you release plus the interest is repaid from the value of your estate once the last homeowner on the deed passes away or moves into long term care.
  • You retain 100% ownership of your home.

3) Drawdown Lifetime / Equity Release Mortgage.

  • Similar to the Roll-up Lifetime mortgage but with more flexibility as to releasing the money.
  • Rather than just a lump sum you can release cash over time, as and when you need it.
The Mortgage Pathway © 2014 (((Please note that Mortgage Pathway offer no advice on lifetime mortgages, mortgages or pensions and will refer your details to their qualified, FCA regulated partners, who can offer professional advice, suitable for your circumstances and provide an illustration.))))