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Thursday 1 July 2021
Thursday 1 July 2021
Thursday 1 July 2021
Thursday 1 July 2021
At Barrett Mortgages, our equity release specialists are here to help you unlock the value in your home. By working with a wide range of lenders, we compare products to find the best solution tailored to your individual needs.
Equity release can be an effective way to access the cash tied up in your property, but it’s essential to understand your options and the potential implications.
Types of Equity Release Mortgages
There are two main types of equity release mortgages:
1. Lifetime Mortgage
How It Works:
A lifetime mortgage allows you to borrow money secured against your home while retaining ownership of the property. This option is available only if your home is your main residence.Key Features:
You can ring-fence some of the property’s value to leave as an inheritance for your family.
Choose to make repayments or let the interest roll up.
The loan, along with any accumulated interest, is repaid when the last borrower dies or moves into long-term care.
2. Home Reversion
How It Works:
Home reversion involves selling part or all of your property to a home reversion provider in exchange for a lump sum or regular payments.Key Features:
You retain the right to live in the property for the rest of your life, provided you agree to maintain and insure it.
You can choose to sell only part of your home and ring-fence the remaining percentage for inheritance.
When the property is sold (typically upon death or entry into long-term care), the proceeds are divided according to the proportions of ownership.
Important Considerations
Equity release can offer financial flexibility, but it’s not for everyone. Here are some key points to keep in mind:
Higher Costs: Equity release mortgages are generally more expensive than standard mortgages.
Age Restrictions: These products are typically only available to homeowners aged 55 or over.
Interest and Repayment:
For lifetime mortgages, interest can accumulate if not repaid, increasing the total amount owed.
Early repayment charges can be substantial if you wish to clear the debt ahead of time.
Impact on Inheritance: Releasing equity reduces the value of your estate, which can affect the amount left for inheritance.
Why Choose Barrett Mortgages?
Founded in 2009 by Darren Barrett, Barrett Mortgages is a trusted finance broker with offices in Poole, Dorset. We’ve built our business on providing clear, honest, and personalised advice tailored to each client’s needs.
What Sets Us Apart:
Experienced Specialists: Our team is fully qualified and dedicated to delivering exceptional service.
Transparent Approach: We explain all aspects of equity release clearly, ensuring you understand the implications.
No Hard Sales Tactics: We prioritise your needs and make recommendations based on what’s best for you.
Strong Reputation: Our business thrives on referrals from satisfied clients who trust us to deliver reliable advice.
Get in Touch
Interested in releasing equity from your home? Contact Barrett Mortgages today to explore your options with our friendly and knowledgeable team.
Whether you’re considering equity release, a first-time buyer mortgage, or expanding your property portfolio, we’re here to help. Let us guide you through the process with expertise and care.
At Barrett Mortgages, our equity release specialists are here to help you unlock the value in your home. By working with a wide range of lenders, we compare products to find the best solution tailored to your individual needs.
Equity release can be an effective way to access the cash tied up in your property, but it’s essential to understand your options and the potential implications.
Types of Equity Release Mortgages
There are two main types of equity release mortgages:
1. Lifetime Mortgage
How It Works:
A lifetime mortgage allows you to borrow money secured against your home while retaining ownership of the property. This option is available only if your home is your main residence.Key Features:
You can ring-fence some of the property’s value to leave as an inheritance for your family.
Choose to make repayments or let the interest roll up.
The loan, along with any accumulated interest, is repaid when the last borrower dies or moves into long-term care.
2. Home Reversion
How It Works:
Home reversion involves selling part or all of your property to a home reversion provider in exchange for a lump sum or regular payments.Key Features:
You retain the right to live in the property for the rest of your life, provided you agree to maintain and insure it.
You can choose to sell only part of your home and ring-fence the remaining percentage for inheritance.
When the property is sold (typically upon death or entry into long-term care), the proceeds are divided according to the proportions of ownership.
Important Considerations
Equity release can offer financial flexibility, but it’s not for everyone. Here are some key points to keep in mind:
Higher Costs: Equity release mortgages are generally more expensive than standard mortgages.
Age Restrictions: These products are typically only available to homeowners aged 55 or over.
Interest and Repayment:
For lifetime mortgages, interest can accumulate if not repaid, increasing the total amount owed.
Early repayment charges can be substantial if you wish to clear the debt ahead of time.
Impact on Inheritance: Releasing equity reduces the value of your estate, which can affect the amount left for inheritance.
Why Choose Barrett Mortgages?
Founded in 2009 by Darren Barrett, Barrett Mortgages is a trusted finance broker with offices in Poole, Dorset. We’ve built our business on providing clear, honest, and personalised advice tailored to each client’s needs.
What Sets Us Apart:
Experienced Specialists: Our team is fully qualified and dedicated to delivering exceptional service.
Transparent Approach: We explain all aspects of equity release clearly, ensuring you understand the implications.
No Hard Sales Tactics: We prioritise your needs and make recommendations based on what’s best for you.
Strong Reputation: Our business thrives on referrals from satisfied clients who trust us to deliver reliable advice.
Get in Touch
Interested in releasing equity from your home? Contact Barrett Mortgages today to explore your options with our friendly and knowledgeable team.
Whether you’re considering equity release, a first-time buyer mortgage, or expanding your property portfolio, we’re here to help. Let us guide you through the process with expertise and care.
