Equity Release Mortgages

Equity Release Lifetime Roll Up Mortgages are specialist mortgages aimed at those over 55, (or in the case of joint applicants, both are over 55), who want to release some of the equity built up in their home without having to make monthly repayments.

Under an Equity Release Lifetime Roll Up Mortgage scheme you keep full ownership of your property but you obtain a secured loan paid as either a lump sum or monthly income (or both) and you pay nothing back during your or the last survivor (if joint application) lifetime, or you finally give up owning a home whichever is the earlier.

The interest which would otherwise be payable per month is rolled up on the loan until the loan is finally repaid by your executors or family, when both the loan plus accumulated interest are repaid from the sale proceeds. You or your representative selling the property still receive the balance between the sale price and the amount required to repay the accumulated loan. This type of scheme has, in the past, been known as Rollup, or Cash Release Mortgage.

The maximum amount you can borrow is a percentage of your home's value being dependent on your age or the youngest age in joint cases. The amount offered by different providers varies depending on your age (or youngest age if joint) and the amount of interest they charge. Typically schemes offer between 20%-25% at age 60 going up to 60%, if, at outset, the youngest is approximately 90. Equity Release mortgages are widely available from age 60, although a few will allow you to release from age 55.

For a comparison of Equity Release Lifetime Roll Up Mortgages and other equity release schemes click here.

Please note: All equity release products involve borrowing against, or selling all or part of, your home and may work out more expensive in the long term than downsizing to a smaller property, and may affect your entitlement to State benefits and grants. There may be more suitable methods of raising the funds you need.

The equityRelease Centre are independent specialists in all forms of equity release schemes and all schemes recommended by us guarantee that no matter what happens to the value of your home, you will never have to pay back more than the home is worth at the time of death – this is called the no-negative equity guarantee. This is a very reassuring point, but it does limit the amount companies are prepared to lend at the outset.

Equity Release Lifetime Roll Up Mortgage schemes - advantages

If you start it whilst young and live a long time, the loan and interest may represent a significant percentage of your home's value, especially if property prices do not increase.

The loan and interest accumulated will reduce what your family inherit.
As the interest is not received until you die, the interest rate is higher than ordinary mortgages.
If you spend all the money released you may find yourself in a similar financial position as before.
All equity release products involve borrowing against, or selling all or part of, your home and may work out more expensive in the long term than downsizing to a smaller property, and may affect your entitlement to state benefits and grants. There may be more suitable methods of raising the funds you need.

To help reduce the speed with which the loan and accumulated interest can build up The equityRelease Centre is able to offer those over 55, flexible Drawdown Lifetime Mortgage Plans. For those who do not need all of the equity immediately, this can help reduce the speed with which the loan builds up because although a maximum borrowing facility is created at the outset (still based on your age or youngest age if a couple and your home's value), you can initially borrow as much or as little as the schemes permit and/or you like and leave the rest to be withdrawn at later dates although any new borrowing may be at a new fixed rate set at the time you borrow the additional money. This way you only pay interest on the amount actually borrowed at anytime and not the total facility. Providing you do not need to take the balance shortly after the initial loan this should lead to a lower total amount being owed at any given time in the future.

This is a Liftetime Mortgage. To understand the features and risks, ask for a personalised illustration.

If you would like advice, please complete our equity release enquiry form and one of our trained consultants will call you back shortly. Alternatively please feel free to phone The equityRelease Centre on 0118 958 8810 or click through to our Equity Release Centre home page and follow the links from there.

You will always receive courteous service in the strictest confidence from highly trained staff who all value your custom. Your business will be dealt with in a friendly, efficient and personal manner at all times.

Equity Release Lifetime Mortgages from The equityRelease Centre