Bridger's LawEquity Release Mortgage
Equity release mortgages
Equity release mortgages are also known as lifetime mortgages.
These type of mortgages got a bad reputation as banks took possession of properties once the borrowers had passed away way back in the 1990’s.
Today’s Equity release mortgages are different to what was being offered in the 1990’s.
Equity Release Mortgage
An Equity Release mortgage is really a lifetime mortgage where monthly repayments are usually not made and the full amount is usually payable upon the occurrence of one of the following:
1. The passing away of all of the borrowers
2. Where the house is no longer occupied and won’t be occupied due to the borrowers going into long term care
3. Upon the sale of the house.
The circumstances my differ from borrower to borrower and we will ensure that you know exactly what their terms and conditions are.
Often Lenders will make a loan facility available so that funds may be drawn down as needed. For example if a sum of £100,000 is made available but you only require say £10,000 then this may be drawn down and interest will only accrue on the amount that has been drawn down.
The money may be used for anything, whether it’s helping a grandchild get onto the property ladder, going on that dream holiday or installing a stair lift, downstairs toilet or conservatory or perhaps buying a new comfortable and reliable car.
The total sum which will need to be repaid will increase as interest is added to the capital amount borrowed.
Some Lenders allow payments to be made thereby nullifying the interest if the full amount of interest is repaid each month if this is preferable.
Why not pop in so that we may discuss this with you?
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