Reverse Mortgages/Equity
Access The Equity In Your Home Without Selling.
Has Your House Value Increased Significantly?
A reverse equity mortgage is a type of Equity Release product where homeowners borrow funds using their home as security without having to sell it.
A strong rise in house prices over the past 30 years has allowed people to accumulate substantial equity in their home.
A reverse equity mortgage is where a lender provides a loan secured against the home and charges an interest rate, and the loan is repayable when the house is sold. While it allows people to stay in their homes and enjoy a worry-free lifestyle, any money borrowed has an interest rate cost, and these costs can accumulate quickly, especially if borrowing a lot.
Is a Reverse Equity Mortgage Right For You?
Some Pros:
Tax-free cash enhances retirement comfort.
Lifetime occupation rights in your home.
No immediate payments; interest cost added to the loan balance (also a con if not used sensibly).
No negative equity guarantee: never owe more than home's worth.
You still benefit from increases in property value as owner.
Flexible drawdown options: lump sum, regular advances, or line of credit.
Some Cons:
Variable interest rates; unknown retained home equity.
Higher rates for reverse equity mortgages than normal mortgages.
Compounding interest.
Borrowing limits and restrictions on eligible regions/property types
Can carry upfront fees (though typically capitalised into the loan).
