EQUITY RELEASE IN YORK

A Lifetime Mortgage is the most common type of Equity release. The money you borrow is secured against your main residence, which is then usually repaid from the sale of your home when you die or move into long term care.

An advantage of equity release is that you can access a tax-free lump sum whilst still living in your home, regardless of your income. Unlike conventional mortgages, which determine maximum affordability based on your personal income, Equity release uses the value of your property, your age and health to determine how much can be borrowed. Therefore, if your income is low, and you require an additional income stream/lump sum, then equity release may be an option.

Alternatively, if you have an existing Interest Only mortgage and no realistic way of repaying it, you may be able to replace it with an Equity Release Mortgage and stay in the property until you retire or enter long-term care. As the monthly repayments are generally rolled-up and repaid at the end, there is no need to worry about a regular monthly commitment. However, if you would prefer to know that the debt is not increasing, some providers allow you to pay the monthly interest.

It is important to consider that through taking Equity Release this will reduce the value of your estate, it may also have an affect on any benefits that you currently receive.  It is a big financial decision and one that shouldn’t be taken lightly, so you should always speak with a qualified adviser.

If you are wanting to explore your Equity Release options further, then get in touch with Ebor Mortgages on 01904 897 667 for a free initial consultation.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.