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Company Loan Type APR Est. Pmt.

Equity Release Mortgage

Posted on: 02nd Jun, 2004 12:01 am
Equity Release Mortgage enables a person to enjoy the capital tied up in his property. It is also known as life time mortgage. It allows a person to release a percentage of the value of his property, either as -
  • Lump sum.
  • Monthly cash release.
  • A combination of lump sum and monthly cash release.
There are two types of equity release mortgage:
  1. Equity release cash plan mortgage - Gives a person a guaranteed fixed monthly release and the option of receiving lump sum cash as well.

  2. Standard equity release mortgage - Gives a person lump sum cash at the start of his mortgage.
Benefits of equity release mortgage are as following:
  • There is an option to choose either a fixed interest rate or capped interest rate during the life of the mortgage.

  • A person does not need to have an income to apply for an equity release mortgage.

  • No monthly repayments are required.

  • No negative equity guarantee.
Reverse Morgage
Posted on: 03rd May, 2007 04:44 pm
Hi Andy,

Welcome to Mortgagefit forum.

You have not given much information, but it seems you want to know how reverse mortgage program works.

It is a home loan which is meant for senior citizens who are aged 62 or more and provides a means for them to convert equity in their homes into cash. You will get a clear idea of how the whole process works after you go through this page: Reverse Mortgage: Home loan for seniors

Colin
Posted on: 03rd May, 2007 04:53 pm
Can Equity Release Options be utilized on income investment property?
Posted on: 23rd May, 2009 06:48 pm
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