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Kerry Weaver
New Leaf Distribution
Mortgage & Protection Advisers

Mortgages

41 Poplar Hill, Stowmarket, Suffolk, IP14 2AU
07775 614497

Equity Release

Equity Release products allow you access to the equity tied up in your home. There are two types of equity release options.

Lifetime mortgage

A lifetime mortgage is a loan secured against your home. You can choose to make regular monthly payments (subject to affordability) or let the interest roll-up. The lifetime mortgage and interest is repaid either on death or entry into long-term care. The minimum age you can take out a lifetime mortgage is 55 years of age.

How much you can release depends on your age, health and value of your property. A lifetime mortgage allows you to retain ownership of your home and you can choose to ring-fence some of your property value as an inheritance for your family.

With a "no negative equity guarantee" you will never pay back more than the value of your home. You can choose to borrow a lump sum or take smaller, ad-hoc amounts using a drawdown facility. You only pay interest on the money you release.

There are two types of lifetime mortgages, interest roll-up or interest paying (subject to affordability).

Home Reversion Plans

A home reversion plan is a product where the plan provider buys all or part of a qualifying interest in your home. The homeowner sells part or all of their property to a home reversion provider in exchange for a cash sum or income. The former homeowner is protected by a lifetime lease guaranteeing occupancy of their home for life. When the former owner dies or goes into residential care the provider sells the property.

Is equity release suitable for me?

There are several situations where equity release may be suitable. However, the suitability of equity release will depend on your needs, personal and financial circumstances, objectives and aspirations.

As your equity release adviser, I will carry out a detailed analysis of your situation to establish the information needed before making any recommendation.

Who is equity release for?

Equity release is suitable for homeowners who wish to realise the value of their main residential property. Homeowners may wish to improve their existing lifestyle by releasing capital locked-up in their home.

Some homeowners may be asset-rich and cash-poor and may need to realise the value of their home for essential day-to-day living costs or to supplement their retirement income. Equity release is not suitable for homeowners who have no real need for extra cash or income.

What can equity release be used for?

  • Home improvements
  • Holidays and lifestyle
  • Helping children, family and loved ones
  • Helping with the cost of divorce
  • Supplementing pension income
  • Clear outstanding debts, loans and credit cards
  • Clearing an outstanding interest-only mortgage

Equity Release plans are not right for everyone. If you are unsure about which product is right for you, you should seek advice from a qualified Equity Release adviser and ask for a personalised illustration.

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