© Equity Release UK 2011 Welcome To Equity Release UK Freephone 08000 855613 Here to help you. Equity Release Lifetime Mortgages Speak to a qualified Equity Release Advisor. Our friendly impartial advice can help you decide on the product suitable for you. You are under no obligation. AN EQUITY RELEASE PLAN WILL REDUCE THE VALUE OF YOUR ESTATE. EQUITY RELEASE WILL NOT BE SUITABLE FOR EVERYONE AND MAY AFFECT YOUR ENTITLEMENT TO STATE BENEFIT. TO UNDERSTAND THE FEATURES AND RISKS OF EQUITY RELEASE ASK FOR A PERSONALISED ILLUSTRATION. Equity Release UK is a trading style for website use only of Independent Debt Management Ltd. Independent Debt Management Ltd is an Introducer Appointed Representative to Personal Touch Finance Equity Release which is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Services Authority. Fee statement - Personal Touch Finance Equity Release charge a fee of £995 payable upon completion of an equity release product Advantages - Roll Up mortgages • No negative equity guarantee - This means that if the loan ever exceeds the value of your property you are still legally entitled to live there • Only pay for the time you hold the mortgage - If you were to die six months after taking the loan you would only pay interest for that period of time • More flexible than home reversion plans - particularly from those looking to borrow smaller sums of money. See Secret 3 - Buy simple and flexible - you can't read the future - which is one of this site's 10 Secrets to Good Personal Finance • More providers = cheaper rates - Lifetime mortgages are by far the most popular type of equity release so there are more providers in the market which creates competition which in turn normally leads to lower interest rates and other assorted charges • Portable - most are portable if you want to move home and this adds some overall flexibility • Available to those as young as 55 - Whereas Home reversion schemes are normally only available to people over the age of 65, Lifetime mortgages can be obtained when 55+ • Regulated by the FSA - Always good to have a financial product regulated and monitored by the financial regulator, the Financial Service Authority (FSA). Back to top. Disadvantages - Roll Up mortgages • Compound interest - Interest is charged on interest and so on. Work on the assumption the initial debt will double after 10 years and then double again after another 10. • Because these are specialist type mortgages the interest rates can often be high in relation to more traditional style mortgages • Might not be any value in the property when you pass away - Because of compound interest the loan value could exceed the value of the property when you pass away. • Your State benefits might be affected - money received to equity release could seriously alter the amount of benefits or state support you're able to collect. It is critical to research this matter further • Might increase your tax - Although the original cash is paid out tax-free. • Early repayment penalties - Sign up but want to cancel the deal later and you could find there are early repayment penalties • Might not be able to release more equity - depending on how much the initial deal is signed for it might not be possible to release more equity in later years. Back to top. Advantages Of Roll Up mortgages Disadvantages Of Roll Up mortgages A lifetime mortgage is basically a long term loan secured against your home. Typically this form of Equity Release is designed for home owners over the age of 60, lifetime mortgages only make up a relatively small part of the mortgage market, but can be incredibly useful to older people who are asset rich and cash poor. Lifetime mortgages help the borrower to free up part of the value of their home, much like an equity release scheme or a home reversion plan. That way, older people who have no money can release capital from the equity stored up in their homes. Lifetime Mortgages do not risk the house, and can even be accomplished without the need for any repayments to be made. Lifetime mortgages are a special type of mortgage loan that is secured on the property, but does not require monthly payments. Interest is added to the amount of the loan, and is paid in full when the house is sold when you pass away, or the death of the second borrower if it is a joint lifetime mortgage, or if you move out into long-term care or a sheltered home. Lifetime Mortgages Lifetime Mortgage schemes are agreed at a fixed rate of interest. This means that you’ll be able to see right from the very start what your future debt will be. You will still remain the owner of your home and will still benefit from any future rise in property prices.   Lifetime mortgages simply offer a way to free up a part of the value of your property without necessarily having to make repayments during your lifetime. Remember, for some people lifetime mortgages are not suitable. Selling your property and moving to a less expensive one may be a more suitable option. This depends on your individual circumstances. Contact Equity Release UK to find out more.

Equity Release UK for equity release lifetime mortgage plans, drawdown mortgages, lifetime mortgages, home reversion plans and equity release calulators