Types of Equity Release
Types of Equity Release in Glasgow
Lifetime Mortgages
A Lifetime Mortgage is a special kind of loan for homeowners.
Most are available from age 60, but there are now some plans available at 55. Although it's secured on your property, there are no monthly payments to make and it is designed to enable you to remain in your home for as long as you wish.
Interest will be added to your loan and the full amount is paid back when your home is eventually sold following your death (or the death of the second borrower if it is a joint application) or if you move into long-term care or sheltered accommodation.
Many people don't require a one off amount from Equity Release; some spending plans may be years ahead. A drawdown Lifetime Mortgage provides a facility which can be drawn down gradually, as and when you need it. It enables you to borrow what you need now with the facility to take further funds later on with minimal paperwork.
The main advantage is that you only pay interest on what you borrow. This is usually preferred to releasing a larger sum only to keep in a bank account pending future plans.
To understand the features and risks, ask for a personalised illustration.
Home Reversion
A Home Reversion Plan involves you selling part or all of your property in return for a cash lump sum and the right to remain in your property rent free until you die (or the death of the second owner if it is a joint application) or if you move into long-term care or sheltered accommodation.
Unlike a Lifetime Mortgage the money you receive is not a loan so you pay no interest on it. The reversion provider owns a proportion of your property and takes their share of the sale proceeds when the property is eventually sold.