Remortgaging to release equity
Our Mortgage Service - helping you make the right decision
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As your mortgage is such an important transaction, good advice is imperative.
Compare latest remortgage deals to release equity
What is an equity release remortgage?
Equity release remortgages can offer older homeowners a means of raising capital using the value of their property, without having to sell it or move out.
At Fair Mortgages, we can offer you a comprehensive assessment of your situation and requirements to help you decide if an equity release remortgage is right for you.
Types of equity release
There are 2 types of equity release plan, lifetime mortgages and home reversion schemes. Equity release may involve a lifetime mortgage or a home reversion plan and in order to understand the features and risks of both, you should consult an independent financial advisor. In simple terms, the differences between the two types of equity release plan are laid out below:
Lifetime Mortgages – with a lifetime mortgage you take out a loan secured on your home and you continue to own your home. You repay the mortgage form the sale of your home when you die or move into a care home. With a lifetime mortgage the amount that can be borrowed depends on your age (or the age of the youngest applicant, if there are two of you) and the value of your property. You may be able to borrow up to a maximum of 56% of the property's value.
Home Reversion Schemes – with a home reversion scheme you sell all or part of your home to a home reversion company. You no longer own your home, but continue to live there as a tenant. The home reversion company will sell your home when you die or move into a care home
Points to bear in mind when considering an equity release remortgage deal
How do you want to receive your money? - With equity release schemes, you usually get the money as a lump sum which you can then use as you wish, or some allow you take the cash as a regular income. Which type of equity release deal is best for you is likely to depend on what you intend to use the money for – if you are planning a once-in-a-lifetime trip abroad, then a lump sum may be of more use to you than instalments, and vice versa if you are simply looking for a sustained income throughout your retirement.
Have you compared the equity release remortgage market? - Just as when you take out any other type of mortgage or remortgage deal, it is essential to compare equity release remortgage offers to find out which ones offer the rates and features that are right for you, as well as to ascertain any potential drawbacks. The equity release market is very competitive and you are likely to find that there are a plethora of different policies to choose from, which can be overwhelming. Our experts can help you to narrow down your options and select the equity release remortgage deal that is best for your circumstances.
Have you considered the potential benefits of equity release? - If you are one of the many over 55s who hold substantial assets in the form of your property, but do not have much free cash to hand, then a well-chosen equity release scheme could allow you to release some of this cash to spend as you wish, giving you more options for your retirement.
Have you considered the potential drawbacks of equality release? - Equity release remortgages are not always the best choice for everyone. They can reduce the amount of inheritance you leave behind and they can also affect your entitlement to certain means-tested state benefits, so it is important to do your research thoroughly before you apply.
Choosing to remortgage for equity release
Remortgaging for equity release is a major financial decision with various benefits and potential drawbacks attached, which means that getting the best equity release remortgage advice should be a key priority.
At Fair Mortgages our team of independent, whole of market mortgage experts can discuss your equity release remortgage requirements and help you to find the most suitable equaity release remortgage deals for you – call us today on 0117 403 4474 or to speak to one of our mortgage advisers click here »