Notes:Providers may have multiple entries.
Where different fees apply according to location, the fee for England and Wales is shown.
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LTV or loan to value is the maximum percentage of the value of your home that the equity release provider is willing to loan you. Although the money released to you is a loan, the amount owed (the original loan plus interest accrued) may not need to be repaid until your home is sold either when you die or move into permanent long-term care. Some plans require some or all of the interest due to be paid monthly. Equity release loan to values tend to be much lower than for conventional mortgages and will often vary according to age – the older the applicant, the higher the LTV available.
Lifetime mortgages are the most common type of equity release plan, and work by lending you a percentage of your home’s value. The cash you receive is tax-free and can be spent on almost anything you want. The older you are, the more you may be able to borrow.
The loan is secured against your home but you don’t have to make any repayments like you would with a standard mortgage. Instead, the interest that is charged rolls up, gradually increasing the amount you owe throughout your lifetime. When the last person named on the lifetime mortgage and living in the property passes away or moves into permanent long-term care, the property will be sold and the lifetime mortgage repaid. Of course, with some plans, you can choose to make regular or ad hoc repayments should you wish to.
You can still leave behind a legacy to your loved ones but releasing equity will reduce the value of your estate. So, it’s best to speak with a specialist adviser, as well as anyone who stands to inherit before taking out an equity release plan.
Call the Moneyfacts Equity Release Advice Service provided by retirement specialist Just Retirement Solutions Limited on 01737 233462^. There’s no obligation to buy but an advice and arrangement fee of £749 is payable if you purchase a product that Just Retirement Solutions recommends.
Just Retirement Solutions has helped retirees release an average of £41,988* from their homes. Their advice is always quality checked and you’ll only be recommended a product where neither you nor your loved ones will ever owe more than the value of your home. Their expert team can answer your questions, guide you through the process and help you make the right decision for your circumstances.
As releasing equity can affect your entitlement to state benefits, everyone receives a full state benefits review. In fact, over half of the people that Just Retirement Solutions speaks to are eligible to claim benefits, and new claims can be worth up to £6,890 a year**.
*Average initial release value taken by unique Moneyfacts customer, between 2007 – July 2016.
** Based on a sample of 196 Just Retirement Solutions customers between 1/1/2015 and 31/12/2015
^ Lines are open 9am to 5pm, Monday to Friday (except bank holidays). Calls may be recorded or monitored, and may be charged.
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