Examples of which are included below:
Equity Release
Lifetime Mortgage
A lifetime mortgage is a popular means for homeowners, over the age of 55, to release some equity in their homes. Essentially this is achieved by borrowing a set amount of money against the value of your home, as a long-term loan. You can continue to own your own home for as long as you are living in it, and the loan is paid back using the proceeds when you, or your executors in your passing, sell the property.
Home Reversion Plans
With a home reversion plan, you can sell your home or a proportion of it to release equity. You can continue to live within the property as a tenant for the rest of your life, rent-free, but you will no longer fully own your home.
Mortgages
Fixed-rate Mortgages
A fixed-rate mortgage is a mortgage where your interest rate is guaranteed to stay the same for a set period of time.
Variable Rate Mortgages
A standard variable rate mortgage is what you would be transferred onto once your fixed-rate Mortgage term ends. From then on, you will be paying variable amounts monthly.
Interest Only Mortgages
An interest-only mortgage is a loan for a property that allows you to pay off just the interest on your borrowing, and not the loan itself, which is paid back in one lump sum at the end of the mortgage term.
Repayment Mortgages
In a similar case to the Interest Only Mortgage, with a Repayment Mortgage you are repaying a bit of the loan you've borrowed along with some interest each month. As long as you meet all of your monthly payments, then you are guaranteed to have repaid your entire mortgage by the end of the term.
Offset Mortgages
An offset mortgage is a mortgage where your savings amount, that are held in a linked bank account, can be subtracted from your total mortgage amount, allowing you pay less each month or pay off the mortgage more quickly.
Flexible Mortgages
Flexible mortgages recalculate the outstanding amount you owe on a daily basis, allowing you to make payments of varying amounts, such as overpayments or underpayments. You may also be able to take repayment holidays. Either of these payment options will affect the amount you owe in the long term.
Remortgages
Remortgaging means switching your mortgages because it will work out cheaper, such as finding a better interest rate with a mortgage held by another lender. Some people can also remortgage their homes to consolidate their debts.
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