Do Equity Release mortgages deserve the bad reputation they receive?

There are still many people who believe that Equity Release mortgages should be avoided at all costs.  Do they have a point?  I have had this conversation with many “professionals” such as solicitors/accountants with interesting outcomes.  The fears they tell me about include “there will be no inheritance left for children”.  “They are very expensive”.  “You could lose your home”.  “You will no longer own your home”.  Very serious concerns indeed, but thankfully all of them can be cast aside as Equity Release mortgages are none of these things.  Compared to what was available just a few years ago, the security, choice, features and benefits of Equity Release mortgages are huge!  Interest rates are at an all time low and are fixed on day one of mortgage and never change – not a lot of people know that!  An Inheritance Guarantee can be added to your mortgage which means that a chosen percentage of the value of your home will ALWAYS be paid to your chosen beneficiaries – not a lot of people know that.  You maintain FULL ownership of your home – not a lot of people know that.  All in all, Equity Release mortgages were reborn some years ago and are not the same beast that they were in the 90’s.  Sadly, they have not shaken off the bad reputation they earned back then.  Another VERY important point to note is that they are often confused with Home Reversion Plans – a completely different arrangement.  A Home Reversion DOES mean that you will no longer own your home.  In exchange for an agreed sum paid to the client at the outset, the lender takes ownership of the property.  This WILL result in you not owning your home and it means that there will be NO property inheritance for your children!  These are NOT the same as Equity Release and in my opinion deserve the bad rep that they get.  Many people are taking the time to learn more about these products that can be life changing.  At The Independent Mortgage Partnership, we are happy to talk you through everything, giving you unbiased, honest advice.  You can then decide what you think of Equity Release mortgages and know if it something that could be for you.

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