More and more retired people are using their home as cash machines as interest rate continue to fall in the equity release market. Rates have tumbled from around 8% a few years ago to an average of 5.2% with some deals as low as 3.6%. Remember that this is a fixed rate for life. Additionally, people are now looking at these types of plans to repay their interest only mortgage.
How do Equity Release mortgages work?
According to the Equity Release Council, of which Equity Release Northampton are members, these type of mortgages are the fastest growing on the market. Equity release mortgages allow homeowners to take money out of their property without the need to move house.
Equity release loans have become more flexible over the years. With over 100 deals available and new providers entering the market the completion is very strong. Most equity release loans do not charge interest until the mortgage term expires, but some now offer the chance to pay the interest in instalments, saving allowing you to make savings in the compound interest.
What can you use the money for
The reasons for releasing money this way are many.
- Here are some of the most popular-
- Help children and grandchildren get on to the housing ladder.
- Repay existing mortgages
- Increase retirement income
- Pay for Grandchildren’s School or University fee.
- Home improvements such as a wet room or a stair lift.
Equity release could be the answer for interest only mortgage borrowers.
A large number of people with interest only mortgages have no way to repay their mortgage. If they are now over the age of fifty-five equity release could be an option.
Others who have built up enough equity in their home may choose equity release rather than downsizing and having to move to an area away from their friends and family.
John Cossons, Equity release adviser said-
“As a company, we specialise in the borrowing in later life. Releasing equity from your home might not be right for everyone. However, it is becoming an option that is worth considering in more and more circumstances. Especial now that interest rates are looking more attractive.”
How Equity Release Northampton can help you with an interest only mortgage?
We are a firm of Independent Financial Advisers who are registered with and are directly authorised with the Financial Conduct Authority (FCA). This means that the financial advice we offer you is unbiased. We look at all the financial solutions available to you, not just equity release, from the whole market.
Meetings can be arranged at a time and location to suit you. This can be at your home. Weekend and early evening meetings are available. The initial fact-finding meeting is free and without obligation.
Our fee of £895.00 is only payable when you draw down your mortgage. It is paid directly to us by your solicitor on completion. So if we are unable to find a suitable product for you, you will pay us nothing.
So why not arrange a free, no obligation, fact-finding meeting today? It might be a way of paying off your interest only mortgage?
To find out more about equity release and to see is if it right for you, visit our website for more information.