The types of equity release plans in Greater Manchester: Lifetime mortgages and home reversion schemes
Equity release plans, including lifetime mortgages and home reversion schemes, allow you to release tax-free cash for your property, without the need to downsize or sell. The money you release is tax-free and can be used as you wish and with a lifetime mortgage, you still own your own home.
Our advisors will review your individual circumstances and personal goals, to help you decide whether equity release suits your needs. If you do decide to go ahead, we can help you manage your application from start to finish. You will need to hire a solicitor and we can help with this. Read our blog: Why do I need a solicitor for equity release?
The most popular type of equity release scheme is a lifetime mortgage. This is a loan secured against your home, and in return, you can release a tax-free cash lump sum or smaller sums of money released at different intervals. This is known as a drawdown mortgage. Interest is added throughout the lifetime of the loan on a compound basis. Unlike a residential mortgage, you are not required to pay it off monthly. However, some plans allow you to pay the interest off if you want to, and in doing so, you will service the loan, so reduced the cost of it over time.
There are many benefits to different plans and flexibility. With some lifetime mortgages, it is possible to protect a percentage of the property’s future value to leave behind as an inheritance, for example. This can give you valuable peace of mind knowing that your family and loved ones will be taken care of. Drawdown lifetime mortgages can be more cost-effective because the interest is only added as and when the amounts are released, so you will pay less interest over the course of the loan.
We can talk you through the different types of plans available to find the right one for you.