How much can I borrow for Equity Release?
Equity Release is the umbrella term for two types of financial products:
Lifetime Mortgages – a mortgage in which the debt is repaid upon death or long term care. You retain ownership of your home.
Home Reversion Plan – where you sell your home at a big discount but are allowed to live there until death or long term care.
We do not provide advice on Home Reversion Plans so this answer will only be in regards to a Lifetime Mortgage.
The borrowing amount on a Lifetime Mortgage is based on two main factors; The youngest borrowers age and the value of the property.
Lifetime mortgage providers have calculations where they take borrowers ages vs the value of the property and provide a maximum loan figure. We have a handy calculator on this site (click here) which will give you a rough idea as to what could be achieved. This is only to be used to give a ball park figures and your broker will be able to research the market for you to get you an accurate figure.
Mortgages to Purchase a Property
Mortgages to purchase a property a fee of £495 is payable on application – this is fully refundable if we are unable to obtain a mortgage offer.
Remortgages
For processing a remortgage a fee of £295 is payable on application – this is fully refundable if we are unable to obtain a mortgage offer.
Rate Switch / Product Transfer
For processing a product transfer/rate switch where you are remaining with your current lender a fee of £145 is payable on application.
Adverse Credit
For applications where there is a history of adverse credit then a total fee of £495 will be charged, of which £245 is payable at the point a personal recommendation is made, whether you decide to proceed or not. The remaining £250 is payable if/when an application is made and is refundable if we are unable to obtain a mortgage offer.
Equity Release Mortgages
A total fee of £990 will be charged, of which £495 is payable at the point an application is made with a provider. The remaining £495 is payable if/when the application completes.
We can accept payment via bank transfer, credit/debit card via PayPal.
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