Deciding if equity release is the right choice is an important decision. We can help with clear, concise information and a process tailored to you.
There are two types of equity release, Lifetime Mortgages and Home Reversions Plans. Lifetime mortgages are more common place and can be the perfect solution to range of different financial needs and personal goals. If you are looking to move home, purchase another property, pay off your existing mortgage, raise capital for home improvements, gift to loved ones, or reduce the value of your estate for Inheritance Tax purposes, we can help you decide if a lifetime mortgage is the right decision for you. We work with every lifetime mortgage provider to ensure you have access to every product available on the market and are a member of the equity release council.
Our process is straightforward, clear, concise and we work at a pace that suits you.
We complete a full review of your financial circumstances
Wherever possible include your family and/or friends, however you may be comfortable to go through the whole process without involving anyone else
Complete a benefits check to confirm the impact on any benefits you currently receive and your entitlement to any future benefits. There may be no effect to your entitlement, but we will make sure you are fully aware if there are any changes as a result of taking a lifetime mortgage
Provide you with a full range of alternative options, including downsizing, secured and unsecured lending and more traditional forms of mortgage products
Document all the advice we give and discuss this with you prior to making any application
Only proceed once you are completely happy it is the right choice for you.
We will never recommend any form of equity release, unless it’s right for you
If you want to see how much you may be eligible to borrow, click HERE and visit our helpful calculator
We cover each product in detail and discuss the merits of each plan, here are some of the options available
LUMP SUM
A lump sum lifetime mortgage could be ideal if you are looking to borrow a one-off tax-free payment, although you may be eligible to borrow more money in the future, subject to the terms and conditions of the lifetime product. You can choose to protect a proportion of the equity in your home and take a lower lump sum, safeguarding inheritance for your loved ones. You may also be eligible for an enhanced lump sum depending on your medical history.
You retain the ownership of your home and there are various options regarding no monthly payment and rolled up interest, committed monthly payments or ad hoc payments.
DRAW DOWN
A range of lifetime mortgage products will allow an initial lump sum to be taken and a pre agreed amount available for you to draw down in the future. You only pay interest on the funds that have be taken and not any facility that remains untouched. The draw down can be taken as and when required subject to a minimum amount per draw down. This can be a perfect solution if you don’t require all the funds initially, but expect you may have a need in the future or want the peace of mind that funds are available should your circumstances change.
As with the lump sum option, you retain the ownership of your home and there are various options regarding no monthly payments and rolled up interest or ad hoc payments.
RETIREMENT INTEREST ONLY MORTRGAGE (RIO)
Retirement interest only mortgages can offer you an alternative to lifetime mortgages, when disposable income is available to meet monthly mortgage payments.
RIO mortgages are an interest only mortgage that have no end date or fixed term, the balance is repaid either when you are in a position to repay the outstanding balance, move home, move into long term care or on the death of the last surviving person named on the mortgage.
As with a standard residential mortgage there are a range of options available such as fixed or variable rates of interest.
HOME REVERSION
Either all or part of your home is sold to a home reversion company for either a lump sum or regular income, although part or full ownership of your home passes to a third party, you can still live in your home for the rest of your life.
The home reversion company can only sell their share of your property when you die, or if you move into long term care.
As with other lifetime mortgages you may be eligible for a higher lump sum or regular income depending on your medical history.
Our fee to arrange any lifetime mortgage is a fixed fee of £395 payable on the production of your mortgage offer, there are no upfront fees and we do not charge a percentage of the loan. If your application does not proceed to the point of offer for whatever reason, there is no fee payable to Pure Mortgage. If we do submit a lifetime application, depending on the lifetime product and provider, there may be costs payable to the lender such as a lender product fee and there may be legal fees to pay. We will fully cover all the costs with you before making any application.