Lifetime
Mortgages is a generic term for many 'secured' lending
products that enable home owners above a certain age (generally
50) to release equity from their homes by borrowing against
it to receive either a lump sum of cash, regular instalments,
or a mixture of the two. Such schemes include Cash Plans,
Income Plans, Open-ended Interest Only Mortgages, Interest
Roll-up Schemes, Shared Appreciation Mortgages and Drawdown
Mortgages.
The
term 'Lifetime Mortgage' was introduced by the Financial
Services Authority (FSA) when proposals to regulate mortgages
and mortgage advice were first discussed in 2002/2003.
Before this, most products of this type were described
as 'Equity Release' mortgages or (sometimes incorrectly)
'Home Income Plans'.
A
second way of releasing 'equity' from your home is Home
Reversion Schemes. These are technically not a mortgage
as you don't 'borrow' money, but simply transfer a portion
of the ownership of your home to a 'Reversion company'
in return for a set sum of money.
So
which is best suited to you? Perhaps none! Many alternatives
are possible and many considerations should be made before
contemplating releasing 'equity' from your home. Even
if releasing equity is right for you, there are now many
companies, who between them offer dozens of very differing
'plans'. Many of these companies are well known names
and you may feel you would be safest taking out a plan
with a company whose name you know, however, these companies
only offer their own plans - this means that they are
unlikely to tell you if there's a better plan for you
from one of their competitors and the plan you get may
not be the best advice for your situation.
Releasing
'equity' from your home is a financial commitment and
therefore it is vital that you seek independent financial
advice, gaining access to the whole 'equity release' market
and rest assured that you will receive tailored advice
and be recommended the most appropriate 'plan' to suit
your own individual needs and circumstances.
We
at Balfour Equity Release pride ourselves on our ability
to guide you through the whole process of releasing equity
from your home, giving you clear, understandable information
and providing the highest standards of advice. We offer
you a free, no obligation, confidential consultation!
So contact
us now and see how we can help you.
