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Equity Release - Home Reversion and Lifetime Mortgages
Britain is a property owning nation. Many retired individuals reach retirement and realise they have not saved sufficiently in pensions, or their investment performance was not as expected. The term Capital Rich, Cash Poor is often quoted.
A Lifetime Mortgage product allows a home owner to release a portion on the value of their home via a special mortgage designed for the older generation.
The borrowing is advanced to the home owners either as a lump sum or through installments and the interest payments, rather than being made each month as with a traditional mortgage, are added to the borrowing and ‘roll up’.
This is an expensive alternative to moving and downsizing, and we ensure all clients taking the Lifetime mortgage option seriously consider moving as an alternative. However for the majority, the thought of moving house is just out of the question.
There are numerous guarantees in place, such as you will never lose your home because of the mortgage and you will be entitled to remain living in your home for the remainder of your lives or until you enter Long Term Care.
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