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The Equity Release Market is constantly evolving. Providers of equity release products are continually innovating to create flexible lifetime mortgages and other products to suit clients in a variety of financial and personal circumstances.

Following the growth in popularity of equity release products in 2021, approximately 20,000 new customers have already unlocked wealth in their properties in the first quarter of this year.

Piles of coins with small model houses on top

How are Lifetime Mortgages adapting?

The Equity Release Council confirmed this week there are now 665 mortgage products available in the marketplace which is an increase of 65.8% from 401 products in just 2 years since 2020 as lenders continue to provide more flexibility and innovative features to provide a better solution for more customer circumstances.

One provider has just launched a new lifetime mortgage with early repayment charges that only last for the first 5 years, making the product more reflective of a standard mortgage with an unsurpassed increase in potential LTV ratio of 60.7% for those clients looking for the maximum cash release (subject to age)

How can we help?

The explosion of new products to the Equity Release Marketplace can feel overwhelming for prospective customers. By working with North East Equity Release, we can help take the stress and anxiety out of finding the right product for you.

We will take the time to research the whole of the market and assess the features, benefits, drawbacks and penalties involved in every Lifetime Mortgage product.

Whether your priority is inheritance protection or you are concerned about early repayment charges, future home moves, interest rates or how equity release could affect your state benefits, we have the answers to your most pressing questions.

Elderly couple high-fiving while holding documents.

Remember that with any Lifetime Mortgage product, you’ll always keep your home until you move into long-term care or pass away.

If you’re interested in learning more about Flexible Lifetime Mortgages, don’t hesitate to get in touch. We offer a free, no obligation consultation, free of any unnecessary jargon.

At North East Equity Release, we know there is some confusion around modern equity release products, so we’re here to dispel the myths!

This year, it was revealed that 67% of homeowners over the age of 55 were not clear on what equity release was, with 18% claiming that they had been put off equity release due to stories they had heard about mis-sold, unfit for purpose products.

We are here to set the record straight! We’ll shine a light on common equity release myths about costs, inheritance, interest rates, and more, so you can take this flexible, versatile product into account when comparing financial solutions for you and your family.

Myth #1 I’ll lose my home!

YOU WON’T LOSE YOUR HOME! Many homeowners view equity release as essentially selling their home – but this couldn’t be further from the truth.

Releasing equity simply means that you are unlocking cash from the value of your home and using it however you see fit while maintaining 100% ownership. You still have the right to live there until the end of your life, or until you decide to move into long-term care. Just in case you missed it, we’ll repeat it. YOU WON’T LOSE YOUR HOME!

Myth #2 Equity release is expensive

Again, not true! Equity release can be surprisingly cost-effective. According to a report from April 2021, the average interest rate on equity release products was down to 4.07%. Furthermore, if you choose to create a cash reserve account to access funds in the future (as opposed to taking out an initial lump sum), you can avoid a build-up of interest and will not be charged until the reserve money is released.

The idea of monthly repayments can be daunting. We’re happy to inform you that when you release money from your home, you will be free from those monthly repayments. Whilst interest will accumulate over time, this does not need to be paid until your property is sold. You can also choose to make voluntary repayments if you wish and you can repay the loan in full at any time, although an early repayment charge may apply.

Myth #3 I won’t have anything to leave for my loved ones

The money released from your home can be used in whatever way you see fit. Many people opt to use the funds to provide loved ones with an early or “living inheritance,” giving them the chance to help a child or grandchild with a deposit on their first home or paying off student loans.

With some plans, you can protect a portion of equity as inheritance, or you can opt for a serviced interest peace of mind plan to avoid the interest build-up. At North East Equity Release, we can advise you on these features that many leading providers offer.

senior woman sitting on sofa with her grandchildren

Myth #4 I’ll end up owing more than what my home is worth

As long as you ensure that your lifetime mortgage has a no-negative-equity guarantee, and opt for an Equity Release Council approved lender that meets product standards, you won’t have to worry about owing more than your home is worth.

If the value of your home decreases and no longer covers the amount you have borrowed, the remainder of the loan will be written off.

Speak to Joanne Manghan, our highly experienced Equity Release Adviser, for tailored, free advice on Lifetime Mortgages.