Maybe you are finding that your pension income is not keeping up with the increasing cost of living and you would like an additional stream of income to help provide you with life’s little luxuries; the list is endless. Is all your wealth tied up in your home in the form of equity? If so, you are the classic example of being asset rich and cash poor! The value of your home minus any mortgage or secured loan you have is your defined as your ‘equity’.

You may be worth tens of thousands of pounds but find yourself in the frustrating situation where you cannot access these “hidden savings”. A Lifetime mortgage could be the perfect solution to “free up” this money and help you achieve your lifetime ambitions.

What Exactly Is A Lifetime Mortgage?

There are two main types of Lifetime Mortgages. A ‘Lump Sum’ Lifetime Mortgage, where a loan is secured against your property to provide you with a tax-free’ cash lump sum to spend as you choose and a ‘Drawdown’ Lifetime Mortgage which works in the same way as the lump sum option, but you can choose to take the money in stages instead.

Lifetime mortgages are types of ‘equity release plans’ which were first introduced in the mid-sixties. Over time and with strict regulation these products have improved to be the customer friendly, flexible products we have today. They are plans which allow property owners over the age of 55 to release some of the equity that is currently tied up in their home. It is similar to a conventional mortgage but without a pre-determined and fixed repayment date.

Typically, the only time the loan becomes repayable is when the property is sold usually upon you and your partner’s death or when the surviving partner moves into a long-term residential care home. In the majority of cases, the initial mortgage is set up with a ‘fixed for life’ interest rate, which doesn’t change for the lifetime of the loan. There are many benefits and guarantees which you, the homeowner, can enjoy.

The idea behind this section of our website is to provide you with some answers to the many questions that our clients invariably have.

We do not and never have engaged in pressuring our clients into purchasing a product. In fact, on some occasions, we have actually advised our clients not to move forward with equity release, as in our opinion it was not the appropriate vehicle for their needs, even though this advice cost the company money.

It is this kind of refreshing honesty that we believe sets Equity Release Scotland apart. We will walk you through every available option, explaining the pros and cons of each product, and answering any questions that you might have.

We view ourselves as a partner working with you to come up with the best solution, with the added advantage of being independent. This gives you access to a broad range of products, some of which offer exclusive rates or bonuses, which are not available on the high street.

Stop struggling with your current lifestyle, and put your property to work for you. It is time you reaped the rewards of your hard work, and began to enjoy some of life’s luxuries. You have absolutely nothing to lose, and a lot to gain, so for more information or to book a no-obligation appointment call our friendly and helpful customer services team today on 0808 1000 170 (Free Call)

What is a Lifetime Mortgage?

Once you have decided to release some of the equity in your property, the next decision to make is which financial product you want to use for this purpose. A lifetime mortgage is the most common solution, and it works in a similar way to the standard mortgage you paid when you were buying your property but in reverse.