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Equity Release

Equity Release Mortgages are a very specialised sector and are typically only open to persons aged 55 and over who own their property. Equity Release products are a way of using the equity in your property to fund things like additional retirement income, home improvements, helping family members or even paying off debts.

Equity Release is not affordability based and therefore you do not need an income to apply for one. Money taken out of your property is based on your age and the value of your property. If required money could be taken out in stages, this is called a drawdown facility. Monthly payments are not normally required and therefore the capital and interest is rolled-up annually.

Equity Release products come in two types, Lifetime Mortgages and Home Reversion Plans. The fundamental difference between the two is that of ownership. With the Home Reversion Plan you would sell all or part of your property to the Equity Release provider in exchange for a sum of money and would therefore lose 100% ownership of your property. With Lifetime Mortgages however you retain full ownership of your property and money is release based on a percentage of its value. Due to this fact alone, although it maybe suitable for certain customers, Mortgage Wyse only offers the Lifetime Mortgage product.

Costs associated with a Lifetime Mortgage would include things like a valuation fee charged by the Equity Release provider, however, with some providers this is free. Your own Solicitor legal costs of some £600 plus vat and a fee to your mortgage adviser for arranging the Lifetime Mortgage. If required, all of these fees could be included in your Equity Release loan. Equity Release Mortgages are not to be entered into lightly and therefore you must first speak to a qualified Equity Release adviser in order to understand all the options and therefore able to make an informed decision.