There has been a lot of talk over the last 12-18 months about the silver generation, the generation who rather than saving cash put all of their funds into their property and the outright ownership of such. Not a bad idea at all but what it has done for some people is left them with an asset that is worth a lot of money but one that does not provide them any sort of income or capital option when it comes to retirement.
There are now a variety of options available to these types of clients be it a new Later Life Mortgage, a Lifetime Mortgage or a Home Reversion Scheme. Home Reversion schemes are not something that we offer here at Prosperity due to our belief that in 99% of cases there will be better options available to the client and this type of scheme is unlikely to help, you will also have to give up ownership of your home immediately as you sell it to the reversion provider.
Lifetime mortgages can be a great way to release equity from your main asset and then use the funds for a variety of reasons. Those reasons could be anything from Home Improvements to going on a world cruise, it is your money to do as you please with. There are of course many other considerations to take into account before deciding on taking out a lifetime mortgage, not least the growth of the loan if interest is to be rolled up, this is likely to double every 8-10 years, this will obviously have a great impact on any legacy that you may wish to leave to your loved ones. We are members of the Equity Release Council however and the products we use through the Equity Release Council do come with a No Negative Equity Guarantee. It is also very important to seek legal advice before completing on any Lifetime Mortgage arrangement.
Having said all of the above the release of equity can be a huge relief if the capital is to be used to supplement income and improve your standard of living. In this respect we offer a completely independent service with access to all lenders in the marketplace. This means that you are safe in the knowledge that our recommendation to you has been thoroughly researched and the product will be the best one to suit your needs. We have no favourite lenders or even a favourite panel, we will have assessed everybody on your behalf.
Equity Release and Lifetime Mortgages are a huge decision and one that often involves more family than just the applicants themselves. Our advisors are empathetic to the concerns raised and professional in their manner to help address any concerns and needs raised.
A lifetime mortgage will be secured against your home