Understanding the different types of equity release plans is so important to avoid making a regrettable decision. Considering your options before deciding what suits you best should be your priority.
Releasing equity out of your home may be achieved in several different ways:
Homeowner Loans aged ‘over 55′
- Correctly referred to as Lifetime Mortgages are becoming increasingly popular because they offer so many options that distinguish this product from the stigma often associated with Equity Release. Market leading rates and varying repayment options to suit your needs.
Homeowner loans ‘under 55′ – Refinancing through a secured loan or re-mortgage.
- Traditionally popular with younger mortgage payers that are looking to consolidate their debts or improve their home.
Sell your home, move into rented or buy a cheaper one and pocket the cash profit.
- If this is what you want-you should set about getting your house valued
Sell your home to a firm that will buy it at a discounted price and rent it back it to you.
- We distance ourselves from such activities and warn you to tread very carefully as you may be led into discounting far more than you should. This area is currently under investigation by the authorities.
Sell your home to an insurer who will pay you a reduced figure and allow you to stay rent free for the rest of your life.
- This is probably what most people perceive as Equity Release but is more properly described as Home Reversion. We distance ourselves from this product because it fails to be in an accord with our TCF policy. However, that is not to say that it is unsuitable for everyone, it is just that this is something that we feel uncomfortable promoting.
For more help understanding Equity Release, or to simply discuss your options, give one of our friendly staff a call on 0800 810 1212.