Equity release mortgages are becoming an increasingly popular option for people they reach retirement age. We explain what they are and how you can make sure you get a good deal.
The idea behind equity release mortgages is that they give you a means of unlocking some of the value of your home in the form of a tax free lump sum.
You can continue living in your home for as long as you wish and will have money to spend on whatever you desire - whether that’s putting it aside as savings to spend during your retirement, spending it immediately or using it to purchase an annuity which would give you a regular income for the duration of your life.
You don't usually make repayments with this type of mortgage. Instead the mortgage company will be repaid in full when your house is sold or out of your estate if you leave your home to relatives on your passing.
As such equity release mortgages can give financial freedom to those who own their property outright and are entirely mortgage-free, but are struggling without the regular income they previously had before retirement.
Equity release mortgage rates are typically higher than the average mortgage which makes finding the best deal for your circumstances even more important.
As such carrying out an equity release mortgage comparison is a must.
When you do this it's imperative that you check the charges and terms and conditions of any equity release mortgage deal you're considering to make sure you're comfortable with how and when you'll need to repay the balance.
If you're at all unsure as to whether an equity release mortgage is the right option for you it's worth discussing your options with a qualified professional such as an Independent Financial Advisor or an independent mortgage broker who will be able to assist you in your equity release mortgage comparison.
Doing this as well as comparing the best equity release mortgage deals from as many different providers as possible is the only way to guarantee you'll get the best equity release mortgage rates and the right deal for your circumstances and financial future.
