Questions regarding Equity Release and Lifetime Mortgages - Equity Release Bournemouth

Call Julia on:
07862 708429 or 01202 416856
Enquiries:  07862 708429
Call Julia on:
07862 708429 or 01202 416856
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Questions regarding Equity Release and Lifetime Mortgages

Supporting finance in retirement
  • What happens if I or my partner need long term care?
The plan will only come to an end when both of you have left your home to live in a care home. You will have no early repayment charges to pay and the plan will end once the property has sold. Your equity release mortgage is generally not affected if you receive care at your home or if one of you leaves to go into a care home. You can continue to live in your home without your lifetime mortgage being affected.

  • What are the terms and conditions of what I can do with the money released by equity release?
There are no restrictions with what you can do with the money you have borrowed but your adviser will make you think carefully about the amount you need and how this will effect your estate and beneficiaries.

  • What are the risks of Equity Release?
Your adviser will go into detail of the risks of equity release depending on option that looks best for your circumstances.

  • What happens when I die?
Your home will be required to be sold to repay the amount you have borrowed and the money left over will go to the estate and your beneficiaries.

  • Will I lose ownership of my home?
No. With a lifetime mortgage, you are in control and can live there as long as you want to. However, if your adviser recommends a home reversion plan, then the reversion company will own all or part of the property, although you will have the right to live in your home for the rest of your life. A Home Reversion Plan is a specialist type of lifetime mortgage and only suits a very particular borrower of which your adviser would explain if it were applicable.

  • What about the risk of negative equity?
An Equity Release Council approved mortgage has a 'no negative equity guarantee' which means that wnen your property is sold, and when solicitor and estate agent fees are paid and there is no enough to repay the outstanding loan to the mortgage provider, neither you or your estate will be liable to pay any more than the value of your house.

  • Will I leave my family my debt?
With Equity Release Council approved mortgages, your debt will be covered by the proceeds when the house is sold after you have died or moved into long term care. Please discuss this with your adviser.
  • Will my beneficiaries loose their inheritance?
You can take out an equity release mortgage which protects a percentage of your home's value for your beneficiaries as an inheritance.  If the value of your property increases after you take out this lifetime equity release mortgage, you can ensure your estate still benefits.

  • I have an interest only mortgage which is due to finish when I am 80, can equity release help?
Many people took out an interst only mortgage in the 80s and 90s but now borrowers are finding themselves approaching the end of their term with no repayment vehicle to pay off this debt.  Many lenders have stringent age restrictions on new mortgages resulting in those of retirement age struggling to find a new deal.  You could choose an equity release plan with a monthly repayment mortgage to ensure the debt does not increase or a no monthly repayment mortgage.

  • Will I will lose my home?
Equity release is regulated by the Financial Conduct Authority. Dorset Financial Planning recommends Equity Release Council approved plans whcih have safeguards which include:
  1. No negative equity guarantee.
  2. The right to move house.
  3. The right to live in your home for as long as you wish.

  • I have a health condition such as high blood pressure or I enjoy some dangerous pastimes
If you or your partner have any health conditions or enjoy pastimes that could be seen as more risky than others, you may be able to benefit from being able to release more equity from your home. Please discuss this with your adviser.

  • I need income rather than a lump sum payment
It is now possible to receive cash in stages as and when is needed. The interest is only added to teh amounts as they are released so builds up more slowly than it would have been had the full amount been released.

  • Can i make overpayments or maintain the interest payments to avoid compound interest building up?
Compound interest can be added to the lifetime mortgage but your adviser will recommend you make payments or repayments as and when you can to ensure the mortgage doesn't build up too quickly if this is best for your circumstances.

  • Can i move house once i take out an equity release plan?
Yes.  With an Equity Release Council approved plan you can move your equity release mortgage to a new home subject to criteria.
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Address:  7 Ravine Road, Bournemouth, BH5 2DT
Phone:  07862 708429 or 01202 416856

Dorset Financial Planning is an appointed representative of Beneficial Life (London) Ltd, which is authorised and regulated by the Financial Conduct Authority, FCA number 736655. Dorset Financial Planning is authorised and regulated by the Financial Conduct Authority, FCA number 779271.
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