Equity Finance ReleaseJanuary 20th 2018 - Eric's Guide to Equity Release

What are the options when your interest-only mortgage comes to an end?

Nearly 40% of borrowers over the age of 60 have interest-only mortgages which are due to mature within the next four years, and over half of those borrowers lack investment plans to cover the capital repayment needed to clear the debt when it matures, it has recently been revealed.

So what are your options if you are facing a shortfall when your mortgage matures? The first port of call should be your mortgage lender. For smaller repayments, lenders may be willing to extend the term of the mortgage and perhaps convert it from interest-only to repayment or part repayment.

If you are a homeowner over the age of 55, however, you may also like to look at the option of converting your mortgage to a lifetime mortgage. A lifetime mortgage is a special type of secured loan, allowing borrowers to release equity from their home, and is only required to be paid back once the property is sold upon their death or moving into permanent care.

There are no monthly repayments, so the prospect of repossession for payment arrears is no longer a threat. A lifetime mortgage does not involve selling any legal ownership of a property and allows borrowers to remain living in their home for the rest of their life.

The Equity Release Council (ERC) is the industry body for the Equity Release sector, and they set the standards and safeguards that protect and reassure consumers. The strict code of conduct means that Equity Release customers will never have to leave their home as long as it is their main residence, and they are given the ‘no negative equity’ guarantee, meaning borrowers will never owe more than the value of their home and no debt will be left to their estate.

It is important to consider the impact that Equity Release might have on your entitlement to means-tested benefits, however, and if you have family, make sure you discuss Equity Release with them as your decision will affect their inheritance.

To understand the full features and risks of a lifetime mortgage, or to receive a free comprehensive 32 page guide about Equity Release, then contact the Equity Release Information Centre on Freephone 0800 077 6880 or visit www.askeric.tv.


Hodge Launch New Repayment Equity Release Plan

Interested in equity release but worried about the roll-up? Then you’re in luck because Hodge Lifetime have just launched a new product that allows you to make flexible repayments.

Up to 10% of the amount borrowed can be repaid each year, there are no early repayment charges after year 5, and you are therefore in control of how much the lump sum rolls up over time. These plans are available to all homeowners, over 60, regardless of status.

Not only are they truly flexible but unlike normal mortgages, they come with a no negative equity guarantee. This means you will never owe more than your property is worth.

To find out more about these plans, or how much you could raise call ERIC on 0800 077 6599 to book your free, no obligation appointment.

Partnership Deals are Fee Free for ERIC Customers

Another day, another deal becomes available from ERIC! This time we’ve teamed up with Partnership to bring you a new lifetime mortgage product that is specifically designed to release more cash based on your lifestyle and health conditions.

Not only is there significantly more cash available for you to spend on anything you like - from holidays, to gifts to paying off debts - but the deal comes with no valuation or arrangement fees. In addition, Partnership is offering an inheritance protection feature that enables you to guarantee a percentage of your property value will go to your heirs. This is on top of our usual safeguards that you will never owe more than your property is worth and you retain full ownership of your property.

To find out if you qualify for this fee free plan, ask ERIC on freephone 0800 077 6599.

Deals correct at date of publication 10.10.12.