A lifetime mortgage, previously known as equity release, is a way to raise capital from your home while still living in it. There are two different types of schemes:
- Lifetime Mortgage
- Home Reversion Plan
A Lifetime mortgage is a loan secured on your home. You continue to own your home, and will have to pay back the mortgage at some point in the future. The mortgage can be repaid from the proceeds of the sale of your home if you move, when you die, or if you permanently move from your home into long-term care. There are different types of lifetime mortgages, and the most appropriate solution depends on your individual circumstances.
Home Revision Plans
A Home Reversion plan involves selling all or part of your home to a reversion company or an individual. You no longer own your home, but you can continue to live there as a tenant of the reversion company or individual. Your home will be sold when you die, or if you permanently move out of it.
Fraser James Partnership Ltd only recommends lifetime mortgages which are approved by ERC – Equity Release Council – and we only recommend lifetime mortgages which have a 'no negative equity guarantee'. www.equityreleasecouncil.com.
Lifetime mortgages are a complex area, and you should seek advice if this is something you are considering. To understand the features and risks, please ask for a personal illustration. Our typical fee is £499.
At Fraser James Partnership , we believe there is always a solution. For more information and guidance, or to speak with one of our qualified advisers, please contact us in confidence, at any time.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.