The Equity Release Foundation

The Equity Release Foundation Equity Release Mortgages, or now better known as Lifetime Mortgages are a way for homeowners aged 55 or over to access tax free cash from their property.

An Equity Release mortgage, also known as a lifetime mortgage, enables those aged 55 or over an ability to access cash that is tied up in their homes. Homeowners over 55 often have little or no outstanding mortgage and quite often describe themselves as ‘equity rich & cash poor’, whilst many others have interest only mortgages and have no way of repaying the capital at the end of the mortgage term

. In situations such as this Equity Release may be the answer and could be a way for you to release cash from your home, avoiding the need to move out. Cash can be released as a lump sum, as an income or a combination of both. Is Tax Fee. Has no monthly payments although some providers give you the option. After repayment of your current mortgage the cash released is yours to spend as you wish. Discussing the options with the Equity Release Foundation will ensure that you choose the right Equity Release scheme that is most appropriate to you. A lifetime mortgage may affect your entitlement to state benefits and will reduce the value of your estate. Think carefully before securing other debts against your home. To understand the features and risks, ask for a personalised illustration. The Equity Release Foundation is a trading style of Top Mortgage Solutions Limited who is an Appointed Representative of Mortgage Next Network Ltd which is authorised and regulated by the Financial Conduct Authority under number 300866 in respect of mortgage, insurance and consumer credit mediation activities only.

26/01/2017

Equity release mortgage rates at record lows

The cost of lifetime mortgages is lower than ever
Equity release mortgage rates at record lows

Lifetime mortgage interest rates have fallen to a record low level in the months following the Brexit vote, according to Legal & General.

The provider’s flexible lifetime mortgage product now offers an interest rate of 3.71%, compared to 5.19% in April this year.

According to L&G’s figures, a flexible lifetime mortgage of £100,000 taken out today could see the amount owed after 15 years drop by £40,901 compared to one taken in April, from £213,608 to £172,707.

The current lifetime rate is also lower than the average standard variable mortgage rate of 4.27%. This means that customers over 60 on their lender’s SVR could potentially save money by switching to a lifetime mortgage at a lower interest rate.

The Equity Release Council said that even before the latest reductions, lifetime mortgage rates dropped faster than any other form of lending in first six months of 2016.

Written by: christinahoghton
19/10/2016

https://www.equityreleasefoundation.co.uk

20/12/2016

The cheapest "lifetime mortgage" - a type of deal aimed at older borrowers who want to release cash from their property - is now cheaper than the average variable mortgage rate for ordinary mortgages.

Legal & General has dropped the rate on one of its mortgages to 4.44pc.

The deal is the first ever equity release mortgage to drop below 4.5pc.

Lifetime mortgage borrowers, who are typically over 65, do not make monthly repayments. Instead the interest charged is added to the loan.

The debt is only repaid when the house is sold because the borrower has died or moved in with family or to a care home.

Legal & General offers the rate on its “premier” flexible lifetime mortgage, which previously charged 4.8pc. This was already the lowest rate available.

The minimum loan size is £250,000, meaning the lower rate will only be available to wealthier customers. The fee has also been dropped, from £4,999 to £1,999.

The lender estimated that the rate cut would save someone borrowing £1m £87,594 over 15 years.

It also dropped the rate on smaller loans worth more than £10,000 from 4.99pc to 4.59pc.

Rates on lifetime mortgages are typically several percentage points higher than those on normal repayment mortgages.

However mortgage rates are now lower than ever and rates on equity release, which reached up to 8pc in the past, have also moved down.

http://www.equityreleasefoundation.co.uk

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19/12/2016

Getting bored in retirement?

http://www.marketwatch.com/story/10-of-the-best-things-to-do-in-retirement-2013-04-09

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