One of the most valuable of products currently on the market is this local equity release lifetime mortgage. This product is available to anyone over aged 65 who is looking to tap into the value that they have accumulated in their home. The equity release lifetime mortgage requires absolutely no payments on a monthly basis. Instead, the interest that accrues is simply added to the loan total, which is ultimately repaid upon the sale of the house. The sale of the house may occur upon the borrower’s death or their entry into permanent long term care.
There are very attractive and competitive rates available for this particular product. The rate is fixed at 5.10% with an APR of 5.20%.
There are other advantages, aside from the competitive rates, to this equity release plan as well. First, there are absolutely no arrangement fees or early repayment charges. These unique plan features are what make it so attractive to those customers who were previously turned off by equity release because of all of the early repayment penalties that come with other provider’s plans.
There are some requirements that need to be met in order to qualify for this equity release lifetime mortgage:
– Valuation must be a minimum of £80,000
– Amount borrowed relies on individual features:
o Age of the youngest borrower
o Overall value of the property in question
o Locality to main office
The maximum equity release available is £250,000 with a minimum loan amount of £20,000. The amount borrowed will be case specific and will be individualized based on age and property value.
There are different options available when it comes to withdrawing funds under this local equity release lifetime mortgage. The funds may be released on a regular monthly basis or they may also be released as a one-time lump sum.
There are benefits to both options. For those looking to supplement monthly income, it may be wise to drawdown funds on a monthly basis. For those looking to pay off debt or make a large purchase it might be smart to accept funds as a one-time larger sum. There is also the option to have the funds released periodically, similar to other drawdown equity release plans. So, with three different options, you are able to choose the right income stream for your particular financial situation.
For those looking to take advantage of an equity release scheme, live locally to the main branch but are require a plan with fewer repayment fees, this localised equity release lifetime mortgage maybe a wise choice.