Equity Release Lifetime Mortgages

Understanding Equity Release

Equity release allows homeowners aged 55 and over to access some of the value tied up in their property while continuing to live in their home.


One of the most common forms of equity release is a lifetime mortgage, where a loan is secured against the property. The loan, along with any interest, is usually repaid when the property is sold.



Harmony Mortgages provides guidance to help homeowners understand how lifetime mortgages work and whether they may be suitable for their circumstances.

How Lifetime Mortgages Work

With a lifetime mortgage, you borrow money secured against your property while retaining ownership of your home.



The loan does not usually require monthly repayments, although some plans allow voluntary payments if desired.

The loan is normally repaid when:

  • The property is sold
  • The homeowner moves into long-term care
  • The homeowner passes away

Why Homeowners Consider Equity Release

Some homeowners consider releasing equity for a variety of reasons.


These may include:

1

Supplementing retirement income.

2

Funding home improvements.

3

Helping family members financially.

4

Repaying existing borrowing.

Understanding the long-term implications is an important part of the decision-making process.

Important Considerations

Equity release products can reduce the value of your estate and may affect entitlement to means-tested benefits.


For this reason, professional financial advice is essential before proceeding with any equity release plan.


Harmony Mortgages helps homeowners understand their options so they can make informed decisions.

FAQs

  • What is a lifetime mortgage?

    A lifetime mortgage allows homeowners aged 55 or over to release equity from their property.

  • Do I still own my home?

    Yes. With a lifetime mortgage you retain ownership of your property.

  • Do I need to make monthly repayments?

    Many lifetime mortgages do not require monthly repayments, although some allow voluntary payments.

  • When is the loan repaid?

    The loan is usually repaid when the property is sold.

  • Can I move house with a lifetime mortgage?

    Some plans allow homeowners to transfer the mortgage to another property.

  • How much equity can I release?

    The amount depends on factors such as age and property value.

  • Will equity release affect inheritance?

    Yes. Equity release may reduce the value of your estate.

  • Can couples take out lifetime mortgages?

    Yes. Many lifetime mortgages are available to couples.

  • Is equity release regulated?

    Yes. Equity release advice is regulated by the Financial Conduct Authority.

  • Yes. Harmony Mortgages can help homeowners understand equity release options.

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