- 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:
- No negative equity guarantee.
- The right to move house.
- 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.