Equity Release

Guardian Advice provide completely independent advice on lifetime mortgages in Eastbourne. We are not tied to any particular lender or panel and our objective is always to find the best deal to suit our client’s circumstances and life goals.

Equity Release has a bad reputation due to the miss selling that occurred in the late 1980’s and early 1990’s. Since then the industry has introduced a magnitude of regulation which protects the consumer. The Equity Release Council (formerly known as Safe Home Income Plans, SHIP) is an independent body dedicated to the protection of equity release planholders and the promotion of safe equity release plans who we are in full support of.

At Guardian Advice we take extra special care when discussing lifetime mortgage products with our clients and often involve other family members in the process to ensure everyone is comfortable with the products and options.

Lifetime mortgages have been designed to help people who are over the age of 55 and consider themselves as “Asset Rich but Cash Poor” i.e. they have a lot of equity in their home which they wish to access as they do not have enough cash in the bank for their goals.

Inheritance can be important to people and is always to be carefully considered. We can discuss the implications on equity release and inheritance with you in detail and in some scenarios put in place inheritance protections.

Lifetime Mortgage:

A lifetime mortgage is the most popular type of equity release as the planholder still owns the property and can remain living there but does not have to make any monthly payments on the borrowing. The provider will recoup their investment upon the planholder passing away (or going into long-term care) as the property is then sold.

The minimum age for a lifetime mortgage is 55 and the older you are the more generous the lender will be in regards to loan amount. Also if you have any illnesses they can be taken into consideration to increase the borrowing as well.

The interest charged on a lifetime mortgage does not need to be paid but instead it is rolled up (meaning it is added to the debt), the roll up effect of interest can mean this type of borrowing can ultimately be expensive. Some providers do allow overpayments which help curb the compounding interest and some provide protections such as the “No Negative Equity” guarantee that providers must abide by meaning the amount owed will never be more than what the property is worth, so there is no further liability on the inheritors of your estate.

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