These are schemes by which people are able to release some of the equity in their home without having to move house.
The two main scheme types are;
Lifetime Mortgage: you borrow against the value of your home. You may pay interest on the monies or more commonly, the interest rolls up on top of the debt and when you die or sell the house - you or your estate will settle the debt outstanding. The issue here is that you understand the scheme fully and the impact of the compound interest, as adding interest to the amount you owe will reduce the remaining equity in your home. If you live a long time or if house prices were to fall, there may be no equity left in the property for your heirs to inherit.
Home Reversion Plans: you sell some or all of your property to a third party. You receive a cash lump sum for the element sold and live there for the rest of your life, but there may be restrictions on moving home, which could prevent you making a move that you wish.
In both types of scheme you are responsible for the upkeep and maintenance of the property.
Never enter into any of these arrangements without talking it through with a qualified Independent Financial Adviser. Releasing equity from your home may affect your entitlement to State benefits and grants
Your home may be repossessed if you do not keep up repayments on your mortgage. If you would rather pay for mortgage advice via a fee as opposed to Four Corners receiving a commission, our charges would typically be 0.5% of the loan, therefore, for a £100,000 mortgage the fee would be £500. * Figure is based on all of the Four Corners Client Satisfaction surveys received from 1-11-06 to the present date.
