Equity Release Advice

Tailored Home can offer Equity Release Advice. If you need a lump sum of money, for example to purchase your overseas property or indeed a small hideaway for the weekend maybe then equity release is a scheme that could theoretically deliver that dream home. The most popular type of equity release is a lifetime mortgage. 

How the lifetime mortgage works

By borrowing against the equity in your home, you can release extra cash to boost your income or give you a lump sum that can make a real difference to your life - without having to move or sell your home. There are no regular repayments to make. Instead, interest is added to the loan - at an interest rate which is fixed for life. The whole loan amount is repaid when you die or move into long-term care, usually from the sale of the house. This means interest will accrue faster when compared to a conventional mortgage. An alternative form of equity release are home reversion plans which involve a proportion of your home being sold to a finance provider which is usually at a discounted rate to that of market value . Upon death or sale of the property the finance provider takes a proportionate sum representing their percentage share of the property.