There are many myths surrounding equity release. It is probably fair to say that some years ago, these types of mortgages did have some bad press. However, it really could be to your benefit to disregard the myths, most of which are completely unfounded. The numbers of people taking out lifetime mortgages is soaring year by year and more products are coming onto the market. Equity release can be a fantastic option for homeowners over the age of 55 to free up cash. By doing this you will be able to do the things you have always wanted to. The next step is to find the right plan, the one that is most suitable for your requirements and the right adviser.
A lifetime mortgage will allow you to access a portion of your home’s wealth
In the latest blog from Paxton Equity Release, we go through the most common myths surrounding equity release and misconceptions. This is aimed at putting your mind at rest so that you can get more out of your life. A lifetime mortgage is the most popular form of equity release and you could access a portion of your home’s wealth as a lump sum.
I will lose ownership of my home
This is a big worry for homeowners when they release equity, as their home is very dear to them. Retaining ownership is dependent on the criteria of the plan that you take out. All lifetime mortgage plans, which are the most common, will grant you full ownership. With this type of mortgage, you are receiving a loan against the value of your property and you are not selling it. Home reversions, which are less popular these days, also allow you to retain ownership, but it is part ownership.
I will inherit debt
This is something that many older people do not want to incur for themselves and their family. This is actually a rare occurrence and with an equity release mortgage from Paxton, this is not going to happen. You are assured of a no negative equity guarantee. In simple terms, this means that however much you owe, you won’t have to pay more than the value of your property. It is important to remember that repayment of equity will only happen when you and your partner move into long term care or you pass away.
I will not be able to move home again or switch plans
This is another one of the myths surrounding equity release. Again, this is false as you will be able to move homes. Many plans allow for downsizing and will allow you to move house without incurring any additional fees. You should also be able to switch to a better deal. And why not, if there are more beneficial plans available for you?
I will have to make monthly repayments
You can choose to make monthly repayments, but there are no mandatory monthly payments. Depending on the plan that your take out, you can make optional, penalty-free repayments of up to 10% per year of the mortgage balance.
Get in touch with us if you have any questions about equity release
We hope we have managed to clear up some of the myths surrounding equity release in this article. These are some of the main concerns that people have, but there may be others you have. If there is anything else that you require explanation of in reference to an equity release mortgage, please do ask Martin from Paxton Equity Release.
How Paxton Equity Release can help you to acquire a lifetime mortgage
Martin from Paxton Equity Release will be delighted to go through your options. This will determine whether an equity release mortgage will meet your needs and circumstances and be the right choice for you and your family. Please call Martin on 01892 617070 for a chat or email firstname.lastname@example.org