Over 55 equity release to clear an outstanding mortgage
Over 55 equity release can be used to pay off an existing mortgage, so you can stay in your own home. In fact, just over a fifth of equity release plans are used to clear down an existing mortgage*.
Home reversion and lifetime mortgages can be used to clear your existing residential mortgage if you are now too old to pay it off, if you struggle with mortgage payments, if your current mortgage lender won’t extend the term or perhaps you are facing repossession.
With a lifetime mortgage you do not have to make monthly payments. As an alternative, you may decide to make interest payments to maintain the value of the equity in your property.
*Source: UK Equity Release MARKET Monitor, Q1 2017
Case study: paying off an existing mortgage
Our client had fallen on hard times; due to ill health, he had lost his job and fallen behind with his mortgage. Too old to remortgage, his house was due to be repossessed on 28th December – he was facing a grim New Year. We managed to secure equity release sufficient to pay off the mortgage and penalty fees, meaning he could stay in his home.
We did it!
We used equity release to clear our existing mortgage
‘I wanted to release equity to pay off my mortgage, and I’d never done it before. 55+ Equity Release were brilliant; my advisor totally explained it and I felt totally confident that I knew what I was doing – she was really great.
She went through the whole process and asked me questions about what I wanted, such as if I ever wanted to move. She also offered me all the different products out there, with the aim to get the best one to suit my needs. She explained that although it may not have the cheapest interest rate, it is the one that she felt suited me the best and I felt fully confident that she was telling me exactly the right thing.
She went through the process with me and my sister; my sister was happy with the process and felt like the option I went for was right for me.
My adviser made me feel confident that I knew exactly what I was getting into and she really knew her stuff. There was no pressure; she recommended what felt like the right thing for me and most importantly, she really cared.
It might sound a bit silly, but it has made a difference to my life; it’s a relief really and has given me a bit of peace of mind.’Pam Higham, successful over 55 equity release scheme applicant, London