Equity Release

Equity release is a way for asset-rich homeowners over the age of 55 to access the wealth tied up in their property to fund ambitions, without having to sell it or move out.

The most popular type of equity release is known as a Lifetime Mortgage, where you retain 100% ownership and the deeds to your property. It’s a way to unlock the value of your property and turn it into a cash lump sum.

You don’t need to have fully paid off your mortgage and the money released can be taken in one lump sum, in several smaller amounts on which you’ll pay interest, or as a combination of both.

Please note: We can only refer on an introductionary basis.

equity release Wetherby
A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.
What is a lifetime mortgage?

Unlike conventional mortgages, where interest is charged on an amount that decreases with time, interest on lifetime mortgages is charged on an increasing sum, so your debt can grow quickly.

This is because you don’t usually make any repayments, so the interest on the loan is therefore added to your debt on a continual basis.

Most lifetime mortgages have a fixed rate of interest. Some providers offer variable-rate lifetime mortgages, but these offer less certainty.

You’ll never have to repay more than the value of the property, however, as members of the Equity Release Council, a trade body for providers of the schemes, have guaranteed that people who take out the product won’t ever find themselves in this scenario with the ‘no negative equity guarantee’.

What is a Home Reversion Plan

A home reversion plan sees you selling a stake in your property in return for a cash lump sum.

By selling a share of your property, you become a co-owner but continue to enjoy the right to live in it for the rest of your life.

You surrender a percentage of your property in exchange for a sum based on its current value, but the ultimate cost is based on its price at the end of the deal.

You can usually sell between 25% and 100% of your property to the provider, but the amount you get in return will be significantly less than that share you surrender.

Home reversion plans are far less common than lifetime mortgages these days.

You may have to pay an early repayment charge to your existing lender if you remortgage.
Frequently Asked Questions

FAQs

We’ve collated a listed of common questions and answers asked by clients looking to release equity, for your convenience.

  • How much deposit do I need?

  • How much can I borrow?

  • What schemes are available for first time buyers?

  • How can I boost the chance of getting a mortgage?

  • Does my credit score affect my mortgage rate?

  • What comes first, mortgage or find a property?

  • What is a “Mortgage agreement in principle”?

  • How long should I set my mortgage term for?

  • What paperwork will I need to apply for a mortgage?

Equity Release FAQs
Expert Advice

What We Do

Yorkshire Rose Mortgages can help you get the best mortgages deals that meet your needs.

  • We review your financial situation and understand your personal circumstances.

  • We research the market and collate the best deals that meet your needs.

  • We save you time, money and reduce the stress of securing a mortgage.

  • Because we are not tied to one lender, we’re able to offer more flexibility and choice.

  • We take care of the application process for you.

  • We’re here for you even after you receive your keys and can help with mortgage protection.

Mortgage Broker Wetherby
Call us today on 01937 538 981
Let’s talk

Send a Message

Your home may be repossessed if you do not keep up repayments on your mortgage.