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Modern Equity Release

Discover the advantages of modern equity release

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What are the advantages of modern equity release?

Advantages of Modern Equity Release

Modern equity release has considerable advantages over previous versions.

The Equity Release Council promotes safe equity release products and works to protect the interests of homeowners and promote high standards in the industry.

They offer greater flexibility than in previous years with clients having the opportunity to make interest payments and also to overpay a percentage of the capital.

Advantages of Modern Equity Release
  • WHAT IS EQUITY RELEASE?: Equity release is a means of unlocking the wealth or `equity’ tied up in your property to generate a cash lump sum or provide an income. It is a type of loan secured against your property for homeowners aged 55+.
    Historically, equity release has had a problematic reputation largely due to high interest rates, the restrictiveness of the products and the overarching issue of the interest `compounding’ over time.
  • THE NO NEGATIVE EQUITY GUARANTEE: We work with lenders who offer a “no negative equity guarantee”. The “no negative equity guarantee” ensures that the loan amount will never outweigh the value of the property. It is therefore possible to ensure that the loan amount does not increase or even reduce the capital balance by making payments if this is your goal.
    There is more flexibility available now, which may explain why Lifetime Mortgages account for over 99% of all Equity release products taken out.
  • RETAIN OWNERSHIP OF YOUR HOME: You retain ownership of your home with a lifetime mortgage, which means that you remain the legal owner of the property. This is very different to a home reversion plan where you sell a proportion of your property and do not retain legal ownership, as the home-owner sells the property (or a proportion of it) to a reversion provider and remains in the property as a tenant for life. With a lifetime mortgage you retain legal ownership.
  • NOT FOR A FIXED TERM: Unlike a standard residential mortgage, the duration of the mortgage is not for a fixed term, so will continue until the single person (or second person in the couple) dies, goes into residential care or earlier leaves the property.
  • FIXED INTEREST RATE: The interest rate is fixed for the duration of the mortgage. There is no requirement for monthly payments to be paid, but any unpaid interest is added to the loan monthly (known as “rolled up interest” or “compound interest”).

Check out our Equity Release Process page which fully explains the equity release process in plain English, with the most important first step being to determine whether equity release is the best option for you at all.

Call The Equity Release Lady on 01752 749656 or CONTACT US to discover whether equity release mortgages are the right option for you.

We are authorised and regulated by the Financial Conduct Authority so you can always trust us to give you honest and impartial advice.

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The Equity Release Lady (Company number 13354566) is a Trading Name of Ocean Mortgages Ltd. Ocean Mortgages Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 841683. Only if you choose to proceed and your case completes will Ocean Mortgages Ltd charge a fee. Our adviser will talk you through this and the setting up costs before you make any decision to proceed. A lifetime mortgage may affect the value of your estate and your entitlement to means-tested state benefits.

A summary of our internal procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at financial-ombudsman.org.uk or by contacting them on 0800 0234 567.

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