How much can I release in an equity release mortgage?
This will vary depending on your age, the value of your property and which type of plan you are applying for. Paxtons will be provide you with a personalised illustration and talk you through the options possible.
Must I involve my family when deciding about equity release?
While this is not a requirement, Paxtons believe it is important to discuss your plans with your family.
Will an equity release mortgage affect my tax position and/or my entitlement to state benefits?
Cash released from your home is tax-free. However, we feel it is important that you consider these matters, as depending on your personal circumstances, it may affect both your tax and/or benefits situation.
Will I still own my home?
Yes, and you can continue to live in your home until you or your partner (in the case of a joint application), pass away or need to move into long-term care. You should ensure that you maintain the property in good condition and to properly insure your home.
Can I move house in the future?
Our equity release mortgages are portable. This means that you will be able to move house and take the plan with you, if you so choose to do so in the future. The new property would need to meet the same lending criteria at the time and, if your new house is worth less than the current one, you may need to repay some of the loan and interest, with charges. There may also be further legal and arrangement fees normally associated with moving house.
Can I end the plan early?
While equity release mortgages are designed to last for the rest of your life, you are able to end the plan early by paying off the loan and the interest. Depending on the plan and the lender, there may be an early repayment charge for this.
Am I able to borrow more if my property increases in value?
This may be possible, subject to lending criteria, your age and interest rates at the time and pending a new valuation of your property.
How is my equity release mortgage paid off?
The mortgage will be repaid when your home is sold. This is usually following your death or your moving into long-term care. In the case of joint-borrowers, this would be when the last surviving partner passes away or moves into long-term care. Any remaining equity in your home, after the loan has been repaid, will belong to you or to your estate.
Who sells the house?
If you go into long-term care then either you, a trusted family member or your solicitor would normally sell the house. If you pass away, then this will be sold by the person looking after your estate.