Compare Saffron Equity Release 5.08% APR

• Remove tax-free money from your property.
• No monthly payments with Saffron Building Society Equity Release
• Help your family with the cash you release
• Stay living in your own property for as long as you like
• Often used to help with tax planning.

How much can I borrow?

You can release 60% of your property’s value. For example, if your house is valued at £260,000 you can borrow £156,000.

Customer Testimonials

Sandra from Manchester

I got an equity release to give money to my daughter to buy a house. Without the money I borrowed, her buying a home would have been impossible.

Mrs V from Hastings

I had spent my life running up credit cards and loans then getting interest-only mortgages to pay off the debt. I got to retirement age and still owed the bank £160,000. The term was about to expire, and I could not afford the payments on my pension anyway. I got £180,000 equity release and now I am more comfortable with no monthly repayments and I spent £20,000 on a new bathroom and kitchen. I now know I can stay in my home.

Mrs Daly from Glasgow

My daughter lives in the States and does not have health insurance. My £ 30,000-lifetime mortgage paid the medical bills for her son to be born and a year’s rent in advance for a new flat for the baby.

Ms T from Hammersmith

My husband recently died, leaving me with a mortgage I could not afford to pay. The lifetime mortgage allowed me to pay off the mortgage and have enough money left over for a new bathroom, kitchen, and roof repair.

Mrs L from Nottingham

I had to pay a valuation and solicitor fees but no lender or broker fees for my lifetime mortgage. As I was divorcing my husband of 30 years, the money went to him for his share of the house. I am happy now as I am secure, and I do not need to move from my home.

Mrs G from Leeds

My daughter is a single mother, and I got a £ 120,000-lifetime mortgage to buy her a flat outright as she has had a succession of poorly maintained rental flats not suitable for her child.

Ms G from Dover

I divorced my husband, who was a violent alcoholic. I really feared losing my home as I sometimes looked after my daughter’s children. Equity release enabled me to pay off my ex and stay secure in my home.

• nationwide mortgages for over 60s Retirement Mortgages Advice
• Nationwide
• Nationwide Lifetime Mortgage Broker

Understanding Equity Release Rates: A Comprehensive Guide for UK Homeowners

Equity release has grown in popularity among UK homeowners, especially among the older generation, as it offers a way to access the wealth tied up in their property without having to sell or move. With various options available, understanding the intricacies of each can help homeowners make an informed decision. This guide delves into the different types of equity release products available, focusing on their unique features, benefits, and potential drawbacks.

Saffron Mortgages Over 55

Basics of Mortgages Over 55

At the age of 55, homeowners begin to qualify for a range of equity release products. These products allow individuals to borrow money against the value of their home, repaying either from the sale proceeds when the property is eventually sold or through other means.

Benefits

• Flexibility: Borrowers can decide whether to make regular interest payments or let the interest roll-up.
• Enhanced Borrowing: Some lenders may offer more favourable terms for those aged 55 and over, recognizing the shorter expected loan term.

Considerations

• Interest Rates: Rates can vary and might be higher than traditional mortgages due to the perceived risk and the long-term nature of the loan.
• Reduced Inheritance: As the loan amount increases (especially if interest rolls up), the eventual inheritance left for beneficiaries may reduce.

Saffron Mortgages Over 60

Features of Mortgages Over 60

Homeowners above 60 have an expanded set of equity release options, typically with more generous loan-to-value ratios, given the reduced expected loan term.

Advantages

• Higher Loan Amounts: Lenders might permit borrowing a larger percentage of the home’s value.
• Flexible Repayment: Some products offer the ability to make ad-hoc repayments, reducing the overall cost.

Drawbacks

• Potential for Negative Equity: If property values fall and the borrowed amount is significant, homeowners could find themselves owing more than the house’s worth, although many plans now come with a “no negative equity” guarantee.

Saffron Mortgages Over 65

Distinct Aspects

By 65, many homeowners have significantly paid down their original mortgages, offering greater equity to borrow against. Lenders often introduce more tailored products for this age bracket.

Pros

• Tailored Products: Specific products catered to common financial needs post-retirement, such as home renovations or health care costs.
• Enhanced Terms: Some health conditions might allow for increased borrowing or reduced rates.

Cons

• Long-term Impact: Interest can compound rapidly if not managed, leading to large debts.

Saffron Mortgages Over 70 and Saffron Mortgages Over 75

Characteristics

With a shorter loan expectancy, homeowners over 70 and 75 can often access the most favourable terms, with a significant portion of their property’s value available for release.

Benefits

• Maximized Equity Release: Homeowners can often release a substantial portion of their property’s equity.
• Competitive Rates: Given the shorter expected loan duration, some lenders offer competitive interest rates.

Concerns

• Legacy Implications: The larger the amount borrowed, the greater the impact on any potential inheritance.

Saffron Retirement Remortgages and Pensioner Remortgage

Understanding Retirement Remortgages

Retirement remortgages allow retirees to refinance their existing mortgage, possibly accessing better terms or releasing more equity.

Saffron Pensioner Remortgage Explained

A subset of retirement mortgages, these are tailored for pensioners, considering their specific income sources and financial needs.

Advantages

• Tailored Terms: Reflecting the unique financial circumstances of retirees.
• Access to Equity: Without having to sell or move.

Drawbacks

• Potential Costs: Remortgaging might involve fees, which need to be considered against the potential benefits.

Saffron Lifetime Mortgage

Defining Lifetime Mortgages

A popular form of equity release, lifetime mortgages allow homeowners to borrow against their property’s value. The loan is typically repaid from the property’s sale proceeds after the homeowner passes away or moves into long-term care.

Features

• No Monthly Repayments: Interest can be rolled up and repaid at the end of the loan term.
• Fixed Interest Rate: Many plans offer fixed rates, allowing homeowners to predict the loan’s growth.

Considerations

• Reduced Inheritance: The eventual loan amount, especially with compounded interest, can significantly reduce the inheritance left for beneficiaries.

Release Equity and Saffron Equity Release

Saffron Equity Release Explained

Equity release encompasses various products, including lifetime mortgages and home reversion plans, allowing homeowners to access their property’s value.

Benefits

• Financial Freedom: Provides a lump sum or regular income for homeowners.
• Stay in Home: Homeowners can remain in their property while benefiting from its value.

Factors to Consider

• Future Implications: The decision can impact state benefit eligibility and the value of the potential inheritance left.

Saffron RIO Mortgage

Introduction to RIO Mortgages

Retirement Interest Only (RIO) mortgages permit homeowners to make monthly interest payments, with the principal repaid typically from the property’s sale proceeds.

Distinct Features

• Interest Payments: Homeowners make monthly payments, ensuring the borrowed amount remains consistent.
• Flexible Terms: Many RIO mortgages come with features that allow for overpayments or payment holidays.

Drawbacks

• Requirement for Continuous Payments: Unlike some equity release schemes, regular payments are necessary, which may not suit everyone.

Equity release products offer numerous opportunities for homeowners to tap into the wealth tied up in their homes. From the age-tailored products available for those over 55, 60, 65, 70, and 75, to specific products such as retirement remortgages and pensioner remortgages, there’s a broad spectrum of options to suit varying needs and situations.

Understanding Your Saffron Equity Release Options

Factors Influencing Equity Release Rates

Like any financial product, the rates offered on equity release schemes can vary based on several factors:

• Lender’s Criteria: Different lenders have criteria that can influence their rates. This might include the homeowner’s age, the property’s value, and any existing health conditions.
• Market Conditions: Like regular mortgages, the broader economic environment can influence equity release rates. This includes the Bank of England’s base rate, inflation, and other financial indicators.
• Property Value: The amount of equity you can release often depends on the value of your property. Some high-value properties might be eligible for more favourable rates or terms.

Comparing Different Products

Homeowners need to compare different equity release products. Given the long-term nature of many of these products, even a small difference in interest rates can compound over time, leading to significant cost variations.

Seeking Professional Advice

The Role of Financial Advisers

Equity release is a significant decision with long-term consequences. Therefore, seeking advice from a professional with expertise in equity release can be invaluable. An adviser can:

• Provide Clarity: They can explain the intricacies of each product, ensuring that homeowners understand the implications of their decision.
• Offer Personalized Recommendations: Based on a homeowner’s financial situation, goals, and property value, an adviser can recommend the most suitable products.
• Ensure Compliance: With ever-evolving regulations around financial products, advisers ensure that any decision made complies with current regulations, protecting homeowners from potential future legal complications.

Fees and Costs

While financial advice can be precious, knowing any associated costs is essential. Many advisers charge fees for their services, either as a fixed amount, a percentage of the amount released, or a combination of both.

Impact on Family and Beneficiaries

Discussing with Loved Ones

Before proceeding with an equity release, discussing the decision with family members or beneficiaries is advisable. Since equity release can impact the value of the inheritance left behind, having an open conversation can prevent potential misunderstandings or disputes in the future.

Protecting Your Legacy

While equity release can reduce the value of the estate left behind, several products have features designed to protect a homeowner’s legacy. These might include:

• Inheritance Protection: This allows homeowners to ring-fence a portion of their property’s value to leave as an inheritance.
• No Negative Equity Guarantees: Many equity release products ensure that homeowners never owe more than their property’s value, preventing beneficiaries from being left with debts.

Potential Alternatives to Saffron Equity Release

Downsizing

One alternative to equity release is selling the current property and moving to a smaller, more affordable one. This can free up cash without incurring any debt.

Secured Loans or Traditional Remortgaging

For those who require funds but wish to avoid the long-term implications of equity release, other forms of borrowing, such as secured loans or remortgaging, might be viable options.

Equity release offers homeowners an avenue to leverage the wealth stored in their properties. However, like all financial decisions, it’s crucial to proceed with caution and armed with all necessary information. Engaging with professionals, comparing products, and understanding the long-term implications can ensure that homeowners make a decision that aligns with their financial goals and aspirations.

• Tipton & Coseley Mortgage Maximum Ltv
• Lloyds Bank Equity Release From House
• Yorkshire Bank Equity Release Plans

Saffron Lifetime Mortgage Interest Rates for Over 60s

The financial landscape for those over 60 is diverse, offering several products tailored to this age group’s unique needs. One of the most prominent solutions is the lifetime mortgage, a type of equity release plan. However, understanding the interest rates associated with these mortgages can be a complex task.

Saffron Building Society and Their Offerings

Saffron Building Society Mortgages

One notable player in the lifetime mortgage market for those over 60 is the Saffron Building Society. With roots in Saffron Walden, they have built a solid reputation for their bespoke mortgage products, including their offerings for the senior segment of the population.

Saffron Building Society mortgages, specifically tailored for older homeowners, come with competitive interest rates, flexible terms, and dedicated customer service. This has led many to seek out saffron mortgages as a preferred choice.

Reviews and Feedback

When reviewing Saffron Building Society reviews, it’s evident that their approach to the over-60s segment is widely appreciated. Many customers praise their transparency, understanding of individual needs, and flexibility in their mortgage products. Branches such as Saffron Building Society Haverhill and Saffron Building Society Saffron Walden frequently receive commendations for their customer service.

Branch Specific Offerings

Saffron Tiverton, like its other counterparts, ensures that the local clientele receives products tailored to their needs. Each branch upholds the values and standards of the Saffron Building Society and brings a local touch to its offerings, ensuring that they resonate with the specific demographic it serves.

Equity Release Rates for Over 70s

The Importance of Equity Release in Retirement

Equity release schemes can provide a crucial lifeline, especially for those over 70. They allow homeowners to tap into the equity tied up in their homes without the need to move. This can supplement pensions, fund home improvements, or provide a comfortable living standard.

Remortgage Opportunities

Exploring Leeds Building Society

While discussing remortgages, the remortgage leeds building society cannot be ignored. They have an extensive portfolio of remortgage products that can be attractive for those looking to switch their existing mortgages, potentially benefiting from more favourable terms or rates.

Comparing Saffron and Leeds Building Society

The market is competitive when juxtaposing the saffron building society mortgage products with those from Leeds. Both institutions offer compelling products, but the right fit would depend on individual circumstances, property value, and specific financial needs.

Tools and Calculators

Pension Drawdown Calculator – Aviva

One essential tool for those considering equity release is the pension drawdown calculator Aviva. This calculator provides insights into how much one might be able to draw down from one’s pension pot over time, offering a clearer picture of potential retirement income.

Concluding Remarks on the Equity Release Landscape

The landscape of financial products tailored for those over 60 and 70 in the UK is vast and dynamic. Institutions like the Saffron Building Society and Leeds Building Society are pivotal in shaping available offerings. While lifetime mortgages and equity release products can provide essential financial support in the retirement years, they must be chosen with care, diligence, and preferably with the guidance of financial professionals. The various branches, be it saffron building society Haverhill or others, along with tools like the pension drawdown calculator, assist in making informed decisions.

• Natwest Lifetime Mortgage Maximum Ltv
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Understanding Equity Release Rates

Equity release rates are integral to the equity release mechanism, allowing homeowners, particularly those in their retirement years, to unlock the wealth tied up in their homes. Different rates and products are tailored to various age groups and requirements. This guide will delve deep into these rates’ significance across different age brackets.

Saffron Mortgages Over 55

When homeowners reach the age of 55, they start considering ways to make their property work for them. Equity release becomes a viable option.

The Appeal of Mortgages Over 55

Mortgages tailored for those over 55 are designed with flexibility in mind. This age marks the beginning of eligibility for most equity release schemes, offering competitive rates to attract this demographic.

Choosing the Right Plan

While various plans are available for those over 55, it’s crucial to consider the interest rate, the scheme’s flexibility, and the potential for inheritance protection.

Saffron Mortgages Over 60

As homeowners reach their 60s, the demand for financial freedom grows. Equity release schemes tailored for this age bracket become relevant.

Features and Benefits

Mortgages for people over 60 often have lower interest rates than those for younger age brackets. Due to the reduced loan term, lenders view this group as lower risk and often offer better terms.

Comparison with Younger Age Brackets

While the core concept remains the same, mortgages for people over 60 tend to offer better rates and more lenient criteria than mortgages for people over 55.

Saffron Mortgages Over 65

As homeowners approach retirement, their financial needs evolve. The products and rates available for those over 65 reflect these changes.

Interest Rates and Implications

Interest rates for those over 65 tend to be more competitive, but homeowners must be wary of compound interest, which can substantially increase debt over time.

Understanding the Terms

Equity release products for this age group often include added features like downsizing protection, allowing homeowners to move to a smaller property without facing early repayment charges.

Saffron Mortgages Over 70

Advantages of Starting Late

Starting an equity release scheme later in life, such as in one’s 70s, can result in higher borrowing limits and potentially lower interest rates.

Choosing a Plan

Given the myriad of products available and the long-term implications of their choices, it’s essential for those over 70 to seek professional advice.

Saffron Mortgages Over 75

Entering the late 70s and beyond, equity release becomes an even more critical tool for financial planning.

Benefits and Considerations

Mortgages over 75 typically offer the highest borrowing percentages, with some lenders allowing up to 60% of the property’s value to be released. However, the potential implications for inheritance should be a primary consideration.

Saffron Retirement Remortgages

Flexibility in Retirement

Benefits of Remortgaging

Retirement remortgages can allow for more financial flexibility, consolidating existing debts or unlocking more equity from the home.

Interest Rates and Factors

The rates for retirement remortgages can vary based on the amount borrowed, the property’s value, and the homeowner’s age.

Pensioner Remortgage

Specifically tailored for pensioners, these remortgages can offer unique advantages.

Understanding the Rates

Pensioner remortgages often have competitive rates, but it is crucial to understand the long-term implications and their effect on one’s pension.

Saffron Lifetime Mortgage

Release Equity: The Core Principle

Unlocking or releasing the equity in one’s home can provide a significant financial boost. The primary mechanism behind this is the lifetime mortgage.

How It Works

A lifetime mortgage allows homeowners to borrow money against their property’s value. The loan amount and any accumulated interest are repaid when the property is sold.

Saffron Equity Release and Its Intricacies

Equity release encompasses various products, including lifetime mortgages and home reversion plans.

RIO Mortgage: A Unique Proposition

The Retirement Interest Only (RIO) mortgage is a specific type of equity release product. Unlike standard equity release schemes, the homeowner only pays back the interest, with the principal amount repaid upon the sale of the property.

Comparing Rates

When considering equity release, understanding and comparing the different interest rates various products offer is crucial. This ensures maximum benefits and long-term financial stability.

• Barclays Retirement Interest Only Mortgage No Payments
• 1960s steel-framed house mortgages
• Halifax Equity Release Brokers UK
• Natwest Retirement Mortgage Interest Only
• Age Partnership

Navigating the Complex World of Equity Release

The decision to tap into the wealth stored in one’s home is significant. It requires a clear understanding of the various products available, their respective interest rates, and the potential long-term implications.

Factors Influencing Equity Release Rates

Equity release rates aren’t static; they fluctuate based on various factors.

Age of the Applicant

Typically, the older the homeowner, the more favourable the equity release terms. This is mainly because the expected loan duration is shorter, presenting a lower risk to the lender.

Property Value

A higher property value can lead to better rates since the lender’s investment is relatively secure, especially if the property is in a prime location or has a high market demand.

Current Market Conditions

Like all financial products, equity release rates are influenced by broader market conditions, including base interest rates set by central banks and economic forecasts.

Exploring Different Equity Release Schemes

While lifetime mortgages are the most common, there are other equity release schemes to consider.

Home Reversion Plans

Under this scheme, homeowners sell part or all of their property to a home reversion company in exchange for a lump sum or regular payments. While there’s no interest, homeowners typically receive below-market value for their property.

Drawdown Lifetime Mortgages

This option allows homeowners to ‘draw down’ funds when needed, rather than receiving a lump sum. Interest only accumulates on the amount drawn, potentially reducing the overall cost.

Understanding the Costs of Saffron Walden Building Society Interest Rates

Equity release isn’t just about the interest rates. There are other associated costs to consider.

Setup and Legal Fees of Saffron building society interest rates

Setting up an equity release scheme often involves various fees, such as valuation fees, solicitor’s fees, and application fees.

Early Repayment Charges of Saffron Building Society Mortgage

If homeowners decide to repay their equity release plan earlier than agreed, they might face hefty early repayment charges.

Compound Interest on a saffron mortgage

Interest on equity release products is usually compounded, which means the interest accumulates on the loan amount and previously accrued interest. This can quickly increase the outstanding amount.

The Importance of Professional Advice

Due to the complexities and long-term nature of equity release, seeking advice from a professional is paramount.

Selecting the Right Advisor for Saffron Mortgages

Ensure that the chosen advisor specializes in equity release and is registered with relevant regulatory bodies. This guarantees they’re up-to-date with the latest products and regulations.

Regular Review of Saffron Building Society Mortgages

It’s advisable to periodically review the equity release plan with a professional, especially if personal circumstances or market conditions change.

RIO Mortgage: An In-Depth Look

The Retirement Interest Only (RIO) mortgage is becoming increasingly popular among older homeowners.

How a Safron building society RIO Differs

Unlike standard equity release schemes, RIO requires homeowners to make regular interest payments. The loan’s principal amount is typically repaid upon the sale of the property.

The Appeal of RIO Mortgages

Many homeowners prefer RIO mortgages because they reduce their debt by paying off interest regularly. This can be especially beneficial for those with steady post-retirement incomes.

Protecting Your Legacy

One of the primary concerns homeowners have about equity release is the impact on their inheritance.

Inheritance Protection

Many equity release plans offer an inheritance protection feature, ensuring a percentage of the home’s value remains protected, regardless of how much interest accumulates.

Transparent Conversations

Discussing equity release plans with family members is essential, ensuring they’re informed and have realistic expectations about potential inheritance.

Equity release is a potent tool for financial freedom in retirement, but it comes with complexities. Proper research and professional advice are essential to navigate this landscape and make informed decisions that align with long-term goals and needs.

• YBS Lifetime Mortgage Calculator
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Equity Release LTV with Saffron Building Society Equity Release

• 55% monthly payment lifetime mortgage Fortify Insurance Solutions
• 25% loan to value (LTV) home reversion schemes BlueZest
• 55% loan to value (LTV) lump sum lifetime mortgages 1st Stop Home Loans

• Bridgewater Lifetime Mortgage
• Hodge Lifetime Mortgage Plus
• More to life Flexi Choice Drawdown Lite Plan
• Pure Retirement Lifetime Mortgage
• Stonehaven Lifetime Mortgage
• Canada Life Lifetime Mortgages
• Just Retirement Drawdown Lifetime Mortgage
• L&G Legal & General Flexible Plus Lifetime Mortgage
• Nationwide Equity Release
• Aviva Equity Release Schemes
• Hodge Lifetime Flexible Voluntary Repayment Plan
• More to Life Flexi Choice Voluntary Payment Super Lite
• TSB Lifetime Interest Only Mortgage
• Saga home reversion schemes
• Bridgewater Equity Release
• Canada Life Lifetime Mortgages
• L&G Legal & General Flexible Max Plus
• Nationwide Equity Release Schemes
• Interest Only Lifetime Mortgage Products
• Age Partnership Interest Only Lifetime Mortgage

It’s very common to discover individuals seeking out lifetime mortgages with flexible drawdown cash releases, lump sum lifetime mortgages, or home reversion schemes. However, More to Life, like AIG Life, is keen to see paperwork showing your situation in the form of pension statements.

Areas of the UK where equity release is popular

• Wivenhoe
• Swindon
• Tiverton
• Saffron Walden
• Mossley
• Clevedon
• Mablethorpe and Sutton
• Carterton
• Kimberley
• Reading
• West Bromwich
• Northwich
• Tenterden
• Watchet
• Keighley

Legal and General

Tough-to-finance property titles include properties that will be assessed for flood risk, leasehold properties with a short lease, typically less than 70 years, or a defective lease, properties where there are boundary disputes or where planning applications have not been applied for correctly, thatched buildings and missing planning permission or building regulations approval.

Just Drawdown Lifetime Mortgages

Tough-to-mortgage home variants can include flats of less than 30 square metres in any location, properties with a single annexe or another self-contained part of the property, and properties without direct access to an adopted highway or which are accessed over an unmade road. In these properties, there is a self-contained part of the property or annexe, i.e., a basement flat, etc., and properties with mobile phone masts that are within influencing distance of the house.

Just

Hard-to-finance home variants can include difficult roof structures, properties with any externally applied insulation to the walls after construction, properties with a minimum floor area of 30 square metres, freehold/feuhold flats (Scotland only) and privately developed flats in blocks of three or four storeys without a lift.

Hard-to-mortgage property variants include properties where proposed building works have not yet commenced, age-restricted properties, right–to–buy properties in Scotland, commonhold properties, and properties where the borrower(s) own the freehold with any connected party.

The mortgage lender will want to know if the property is a Freehold terraced or Leasehold house and if the resident is an AST Tenant.

UK Equity Release Lenders

• Age Partnership
• Stepchange
• the Telegraph
• More to Life

Equity Release Mortgage Under 55

Equity release and Saffron Building Society Equity Release is joint among business owners below.

• Silviculture and other forestry activities Crowborough
• Manufacture of industrial gases Barnard Castle
• Cutting, shaping and finishing of stone Penryn
• Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials Ramsey
• Manufacture of machinery for food, beverage and tobacco processing Stretford
• Media representation services Sandhurst
• Manufacture of pumps Moretonhampstead
• Public order and safety activities Burslem
• Operation of warehousing and storage facilities for land transport activities Padiham
• Electrical installation Wadebridge
• Agents involved in the sale of machinery, industrial equipment, ships and aircraft in Great Yarmouth
• Manufacture of watches and clocks Stockton-on-Tees
• Manufacture of musical instruments Andover
• Satellite telecommunications activities Banbury
• Licensed carriers Shanklin
• Building of ships and floating structures Wimbledon
• Manufacture of wiring devices Burton upon Trent
• Reproduction of sound recording Frinton and Walton

Common loan-to-value Aviva later life mortgages for over-60s, Shepherds Friendly mortgages for pensioners over 60, Sainsbury’s equity release schemes for over55s, Coventry Building Society mortgages for over-50-year-olds, Nottingham Building Society equity release schemes for people over 70, and National Counties Building Society mortgages for 60 plus are 40%, 55%, and 70%.

Popular loan-to-value percentages of LV= later life mortgages for over 70s, More 2 Life over 60 mortgages, OneFamily mortgages for over 50-year-olds, Yorkshire Bank interest-only mortgages for over 65-year-olds, Metro Bank mortgages for people 60 plus, and Axa remortgages for people over 50 years old are 50%, 60%, and 70%.

Some of the most common loan-to-value ratios for Lloyds pensioner mortgages over 55, mortgages for over 60s, Post Office later life interest-only mortgages over 75, Legal and General interest-only lifetime mortgages for people over 60, Bank of Scotland over 60 mortgages, and Nationwide interest-only mortgages for over 60s are 45%, 60%, and 65%.

Equity Release LTV Percentages

The more elderly you are and the more illnesses you have, the more cash you can release.

Disadvantages of Lifetime Mortgages

Monthly payment equity release can reduce your family’s inheritance and may impact your ability to claim benefits. You may need to pay a broker’s fee, and some products expose you to changes in interest rates.

Saffron Building Society Product name: Lending into Retirement Downsizing (LIRD) and Retirement Interest Only (RIO). Capital repayment or interest-only? Interest-only. Minimum property value: Minimum £100,000. For LIRD, you must have at least £250,000 equity.

Minimum/Maximum loan sum: £30,000/£1m. Maximum LTV: 50% for RIO. 60% for LIRD. Minimum/Maximum age at application: LIRD has no Minimum age but must be within five years of retirement. RIO has 55 Minimum age, but you must be retired. Neither has max-age. Minimum income: none, though you’ll need to be able to prove you can afford the interest payments. Mortgage term: Minimum five years.

No Maximum for RIO, a 40-year Maximum for Lending into Retirement Downsizing.

Overpayments: up to ten per cent fee-free per year on the LIRD deal, with a 2% early repayment charge (ERC) on anything above that in the first three years. Up to 20% fee-free annually with the RIO deal; 3% ERCs apply above that in the first three years.

Unlimited fee-free overpayments after three years for both products.

How is the loan repaid? Lending into Retirement Downsizing is designed to be repaid by selling your home and downsizing.

RIO will run until you die or move into long-term care. Either deal type can also be repaid through overpayments.

Many of the most appealing retirement loan offerings include Lloyds later life interest-only mortgages over 70, Barclays interest-only mortgages for people over 70, NatWest interest-only lifetime mortgages, L&G retirement interest-only mortgages, and Nationwide Building Society mortgages over 70.