Equity release mortgages
Release tax-free cash from your home
If you are a homeowner over the age of 55, you can use an equity release mortgage, also known as lifetime mortgages, to unlock tax-free cash from your home to support your retirement without the need to make monthly payments.
Many providers offer a guarantee to ensure the loan value never exceeds the value of your home.
Alternitavely, Retirement Interest Only (RIO) mortgages allow the homeowner to make monthly interest only repayments. This helps to protect future inheritances as the interest does not compound over time.
Exceptional from Start to Finish
It is not very often these days that one is able to honestly say that the service they have received is exceptional.
I have been helped through the equity release mortgage process by Mark and despite the challenges of Covid he has provided a first class service.
Attentive, patient and above all helpful, I would recommend this company to anyone considering a mortgage. I cannot thank you enough.
Stephen Oliver
Reassuring service
The legal circumstances surrounding our equity release were extremely difficult.
Mark handled our case with professionalism, patience and was reassuring at all times. Definitely recommend.
Keith Clutterbuck
Nothing was a problem
An Equity Release Mortgage during the height of COVID 19 lockdown? Incredible service from start to finish and could not recommend highly enough. First class.
Refined offers and excellent customer service. Nothing was a problem. Highly recommended.
Steve Decoded
How to release equity from your house
If you are over 55, equity release is one method to release the wealth you have tied up in your home. Another option is to sell your home and downsize to a less expensive property.
If you would like to release equity in your home, you can take out a loan using an lifetime mortgage product. The loan is paid back by selling the property on your death or going into permanent care.
You may be able to release equity if you are aged over 55 and own your property, whether it is mortgaged or not.
VA Mortgages can advise on the best equity release solution for your personal circumstances.
Our in-depth equity release guide contains more information if you would like to learn more before speaking with an advisor.
How to release equity from your house
If you are over 55, equity release is one method to release the wealth you have tied up in your home. Another option is to sell your home and downsize to a less expensive property.
If you would like to release equity in your home, you can take out a loan using an lifetime mortgage product. The loan is paid back by selling the property on your death or going into permanent care.
You may be able to release equity if you are aged over 55 and own your property, whether it is mortgaged or not.
VA Mortgages can advise on the best equity release solution for your personal circumstances.
Our in-depth equity release guide contains more information if you would like to learn more before speaking with an advisor.
What is a lifetime mortgage?
A lifetime mortgage allows you to borrow money secured against your home, which does not need to be repaid until you die or go into long term care. The amount you can borrow depends on your age and the value of your property.
Your home still belongs to you, and you have the option to ringfence some of your property’s value as an inheritance for your family.
A lifetime mortgage is different to a normal mortgage as you do not have to make monthly payments. The loan is usually repaid by the sale of your home, with any remaining value being available for your family.
You can choose to add the interest to the loan or repay it. Many providers offer a guarantee to ensure the loan value never exceeds the value of the estate.
What types of lifetime mortgage are available?
The most popular type of lifetime mortgage is a straightforward lump sum drawdown sufficient to meet your needs.
Interest is due on the total amount drawn down until it is repaid in full.
Interest due can either be rolled up each month, meaning there is no liability to make interest payments to the mortgage company, or, monthly interest payments can be made so keeping the overall mortgage debt to a lower amount.
In both cases, further ad hoc lump sum repayments can be made without penalty (subject to restrictions on the size of the repayment).
Lifetime mortgages can also be arranged so that a monthly income for life is paid to the owner. This will have the effect of keeping the interest charged to a lower amount, meaning potentially more equity available to your beneficiaries when the loan is repaid.
If the capital released by the lifetime mortgage is not needed straight away, the amounts drawn down can be made in irregular stages, pre approved at outset. This also has the benefit of reducing the overall interest charge.
Finally, it is possible to arrange a lifetime mortgage that has any two of the above features, or even all three.