Equity Release / Lifetime mortgages

Equity release unlocks the value built up in your home as a tax free lump sum. There’s no need to move out and you’ll still own your home. With equity release you don’t have to make monthly payments, unless you choose to. It’s usually repaid when the last borrower moves into long term care or dies.

Lifetime mortgages are the most popular type of equity release product and are available to homeowners who are 55 or over, are living in the UK and own or are purchasing a home worth at least £70,000.

At Apple Tree Mortgage Services our aim is to provide you with all of the information required to make an informed decision in a comfortable and friendly manner via telephone, in our newly renovated office in Botley or in the comfort of your own home.

Together we will establish one of the following outcomes:

  • Releasing equity is the right decision via a lifetime mortgage
  • Releasing equity is the right decision but via an alternative option (conventional mortgage or retirement interest only mortgage)
  • Releasing equity may be right but not at this time
  • Releasing equity is not the right decision at all

Why choose equity release?

Some of the most popular reasons our customers give for wanting to release equity include:

  • Clearing debts
  • Repaying current mortgage
  • Gifting money to a family member
  • Paying for home improvements
  • Making a major purchase, such as a new car, and
  • Taking the holiday of a lifetime

Taking out an equity release mortgage means being able to do this without having to dip into a pension or move home, and without using your other finances.

Alternatives to releasing equity

Releasing equity can impact the inheritance you leave, and any state benefits or local authority grants you receive.

Before deciding whether to borrow, it’s a good idea to speak with trusted family or friends. They could give you support or suggest other ways to raise the money you need.

Alternatives might include:

  • Using any available savings
  • Moving to a smaller home (downsizing)
  • Getting help from family members
  • State benefits – if you're eligible
  • A local authority grant – if you're eligible
  • A personal loan or credit card.

Things to consider before equity release

It's worth considering these factors before deciding if it’s right for you.

Impact on inheritance

Equity release can reduce the inheritance you leave. This could be due to the fact that you have spent the money, and also due to the interest on the amount you borrowed. That means there could be less for your beneficiaries when it’s time to sell the property.

Claiming benefits

If you are considering taking out a Lifetime mortgage, it’s important you know that this could affect your ability to claim means tested benefits, including support for long term care.

Negative equity

Most Lifetime mortgages now come with a ’no negative equity‘ guarantee. This means that when your property is sold, if there isn’t enough left to repay what's owed, your estate won't have to pay the extra.

Costs involved

When taking out a lifetime mortgage there a number of costs you may incur. We will discuss these in full before proceeding with an application and these could include:

  • Valuation fee
  • Broker fee
  • Lender set up fees
  • Solicitors fees

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

Below are just a selection of the lenders we work with

Accord Mortgages
Bank of Ireland
Barclays Bank
BM Solutions
The Mortgage Works

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