The ability to release some of the equity in a residential property has been important in more and more situations currently, such as dealing with interest only mortgages that will not be cleared otherwise, or providing support for children or grandchildren for education or for purchasing a property.
The most popular of the equity release options has been the Lifetime Mortgage whereby money is borrowed as with a standard mortgage, but instead of payments being made monthly, the interest is added to the amount borrowed and is paid off on the sale of the property. For those who do not want to see interest continuing to accumulate there are now options which allow voluntary payments to be made without penalty – usually up to 10% of the amount borrowed each year.
There are also options to take out guarantees to cover a portion of the property so that you can be certain that part of the value of the property will be passed on regardless of what occurs with the rest of the value of the property. Do give us a ring and we can work out what might be available for you.
No comments:
Post a Comment