Your property: One asset but many options

North Devon Gazette

If your pension pot is not quite enough to live on, then have you ever considered releasing equity from your other main asset, your home?Â

At any time after the age of 55, it is possible to raise a lump sum on your property with a lifetime mortgage. Taking a regular income from your property is another option and as you are not borrowing the money upfront, the interest payments will work out cheaper in the long run.

A lifetime mortgage can help those who have an interest-only mortgage and now have to pay the lender their money back, and releasing a lump sum from your home can act as an invaluable deposit to help your child onto the property ladder.

Freeing up money from your home can help supplement your income in retirement, pay for that cruise of a lifetime and cover the cost of home improvements to enable you to live independently for longer.

For those who have unsecured debts outstanding such as personal loans or credit cards, it is possible to consolidate these to free up some income.

For those with existing equity release mortgages, it may be worth considering a re-mortgage while interest rates are low.

First, it's important to see if any possible early repayment charges would apply, to see if it’s worth transferring the money.

This week, a client at the Mortgage Hub was informed they could save just under £500,000 if they re-mortgaged. This was based on them fulfilling the normal life expectancy of 20 to 25 years. So a re-mortgage is certainly worth the consideration and a look.

The Mortgage Hub charges £695 for advising and arranging an equity release, but any initial enquiry or chat to see what you could borrow is free of charge.

This is favourable compared to many lenders on TV advertising for equity release business who typically charge around £1,500 to £2,000.

If you would like more information on an income lifetime mortgage or the traditional lump sum and drawdown mortgage, call 01271 379444 or email lee@themortgage-hub.co.uk.

The Mortgage Hub is next to Barnstaple cinema and face to face appointments are available in the socially distanced offices. Free no-obligation home visits can also be arranged.

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