Now that equity is available to homeowners thanks to lifetime mortgages. You are no longer forced to choose between losing your own home or struggling financially, there is a third option that over 300,000 homeowners have taken advantage of.
With the lifetime mortgages offered by Pure Retirement through Equity Release Scotland, there are no monthly repayments to make, so no increased financial burden for taking the loan. Instead, the loan and any interest built up, are paid off when the property is sold. In most cases, this will occur once you have passed away or moved into long-term care.
If you’re thinking of releasing some of the equity in your home, perhaps you’ve hit some financial difficulties or you just want to enjoy the fruit of your labours, then you have found the right partner in Pure Retirement. They are award winning lifetime mortgage providers that are flexible and transparent.
One of the most important things to remember is, you still own your home. You can live until you are 150 years old and no one will ever try to evict you from it, because it’s yours. When you (and your partner if it’s a joint mortgage) have passed away, then the home will be sold for the full market value.
As it’s your home, you are in control of the house being sold, it’s never taken from you alive or dead. You or your solicitor (depending on whether it happens when you die or move into long term care) will facilitate the selling of the home for the full market value, as you deem fit.
Once the home has been sold, the lifetime mortgage, including all interest and fees, is paid in full, leaving the remainder of the equity in the home to go to your estate. In other words, you are able to leave the remaining value of your home to who you wish. How much is left will be made transparent when you take out the lifetime mortgage, and of course, will depend on the price of the house when sold.
In today’s current climate, many mortgages just haven’t kept up with the cost of living. Having the flexibility to draw on the equity of your home, something that you’ve worked long and hard to build up, is really helpful to a lot of people, even a lifesaver to some.
Equity Release in Scotland has been around for a little while now, but it’s only in this current economic climate that it’s started to become popular. With Pure Retirement you get the benefit of working with one of the industry’s leading experts, multiple award winners, who will walk you through the process step by step, securing the best possible deal on your lifetime mortgage. It’s what they’ve built their reputation on.
This varies a lot, depending on your individual situation. It will take into account your age, the value of your property at the time, how you want the equity released. A variety of different factors that are unique every time. With Equity Release Scotland, you’ll have your own equity release advisor who will be able to sit down with you and talk you through the specifics of Pure Retirement Equity Release Plans.
Very similar to how much equity you can release, the interest rate is also individual. It depends on the lifetime mortgage you take and, most importantly, the interest rate at the time you take out the mortgage.
Pure Retirement try to be as transparent as possible. In many cases, the interest rate will be higher than a standard or traditional mortgage because it will be fixed until you (and your partner if relevant) pass away. It doesn’t fluctuate as the economy changes, offering you stability. Additionally, the increased interest rate is to offset the fact that you’re not expected to make any repayments during your lifetime.
Yes, as with most things home related, there are some fees to expect. Your Equity Release advisor will walk you through them, but briefly here some of the fees you should expect:
Valuation Fee – The cost incurred in valuing your property, paid when the application is submitted, normally by cheque.
Arrangement Fee – For having the whole process arranged, you are subject to a fee that’s payable on completion and added to your loan. Or you can choose to pay upfront, if you prefer, although most don’t.
Your Solicitor’s Fees – This is entirely up to your discretion, you may feel you need a solicitor, most people do, and there will be fees involved. The legal fees incurred by Pure Retirement, for Equity Release in Scotland are included in the Arrangement Fee.
One of the most positive benefits with equity release is that the cash released is not taxed, it’s completely tax-free. However, it will have consequences on your personal tax, it’s always good to speak to your equity release advisor before you make your final decision, so you have a full picture of how your tax will be affected indirectly.
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You have the Right to Remain in your Home for as long as you choose
You will NEVER owe more than the value of your home due to the "no negative equity" guarantee.
You have the freedom to move to another property without financial penalty (subject to provider criteria)