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01420 467460

Luke Fernandez Mortgages
  • Home
  • Mortgages
  • Insurance
  • Contact us
  • Client Portal

EQUITY RELEASE

What is equity release?

Equity release also known as later life lending or a lifetime mortgage, is a way for those aged 55 or over to take tax-free funds out of their home, without having to move. 


A lifetime mortgage is a long-term loan, secured against your home that's repaid once you (and your partner, if you’ve taken it out jointly) pass away or need to go into long-term care, at which point the loan and any built up interest is paid back, usually from the funds of your home’s sale.


 Entering into a lifetime mortgage (or any form of equity release) will reduce the amount of inheritance you can leave behind. It may also affect your tax position and eligibility for welfare benefits. 


The amount you can borrow is based on things like:

  • Your age
  • Your health and lifestyle
  • The value of your home
  • The type of property you own and its location


 A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate. 

Get your personalised illustration today

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How we can help

  At Luke Fernandez Mortgages we are specialists in later life lending, also known as equity release mortgages or lifetime mortgages, which are designed to help you unlock equity from your home. 

As a Later Life Lending Specialist, we will provide you with a fully personalised advice service, reviewing all the options available to you and guiding you from start to finish.

What can you use equity release for?

What can you use equity release for?

What can you use equity release for?

Releasing equity is a big decision and commitment, so we will discuss the reasons to ensure that you’re doing it for the right reasons. 

Some of the most popular reasons for taking out a lifetime mortgage are:

  • Home Improvements
  • Buying a new home
  • Repay existing mortgage
  • Financial support for family
  • Increasing disposable income
  • Holidays


Is a lifetime mortgage right for me?

What can you use equity release for?

What can you use equity release for?

We will take the time to understand your needs, ensuring we find and recommend the right solution for you. 

Equity release can offer your the flexibility you require, such as:

  • No monthly repayment options
  • Flexible plans
  • Funds can be used for any purpose
  • Voluntary repayment options available with no penalties
  • Inheritance protection available as a protected percentage

WHAT DO WE CHARGE?

What can you use equity release for?

WHAT DO WE CHARGE?

It's free to chat with us, if you are happy with our recommendation and you decide to use our service, our typical fee is £395.  


This is only becomes payable once we have obtained a formal mortgage offer from the recommended lender. 


If you decide not to apply or we can't get the right mortgage for you, then there will be no fees payable. 


No Mortgage Offer, No Fee. 

the pros and cons of lifetime mortgages

 

  • You’ll still own your home
    Even though you're borrowing money against your home,  you will remain the full legal owner of the property.
  • You won’t be leaving your family with the debt
    Lots of providers offer a no negative equity guarantee, ensuring you’ll never have to repay more than the amount your home is sold for. 
  • Take a little here and pay a little there if you need
    You can either take a one-off lump sum or a smaller cash sum with a cash reserve to dip in to as and when you need. Some options also allow you to make smaller repayments if you need.
  • You only pay interest on money you’ve taken out
    With a cash reserve, this will not accumulate interest until you withdraw it. A new interest rate be applied for each amount you take out, so the initial lump sum and any later withdrawals will have their own rate.
  • Moving somewhere new?
    Some providers allow you to transfer your lifetime mortgage to a new home.
  • Be protected if you downsize later
    Should you move to another property later, you may be able to pay off your lifetime mortgage in full with no early repayment charge, with downsizing protection. You may need to have your lifetime mortgage in place for at least 3 years before this becomes available.
  • Leave a little something behind                                                                                                                   With inheritance protection available, you can set aside a percentage of your home’s value to leave for loved ones. 



 

  • Leaving less behind
    Even if you set aside a percentage of your home’s value for your loved ones, paying off the money you’ve released (plus any interest) will still mean you’re leaving them less in inheritance.
  • It may have a tax impact and affect certain benefits
    Taking cash out of your home through a lifetime mortgage could have tax implications or affect whether you’re eligible for certain welfare benefits.
  • You’ll be paying back a lot in interest
    As interest is added to your loan the amount you owe goes up quickly.
  • It’s a lifetime commitment
    Equity release is designed to last for the rest of your life, or until you need long-term care. If you decide to pay off your loan early there could be a large early repayment charge to pay.


News & tips

GET STARTED TODAY ON OUR CLIENT PORTAL

So we can support in the most efficient way please complete some basic information on our Client Portal and we will call you back to arrange an appointment. 

Client Portal

Contact us to discuss your equity release options

Call us: 01420 467460 Text us: 07458 195056 Email us: Luke@lukefernandezmortgages.co.uk

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09:00 – 17:00

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We typically charge a fee of £395 for our service, which is payable upon your mortgage being offered.


The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.


Luke Fernandez Mortgages is an Appointed representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.


Your home may be repossessed if you do not keep up with your repayments on your mortgage.


Registered Company Number: 13537486 


Registered Address: 70 Frimley Grove Gardens, Frimley, Camberley GU16 7JY.


FCA Registered: reference number: 959731


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