There is a growing need for equity release for people who have properties with a lot of equity but who also don’t have money or an income to sustain them. This is often the twin forces of property prices that have risen so strongly in the last 30 years coupled with greater financial needs or low pension provision.
In this video some of the details are described and mentioned by David Brady of Spry Finance.
Some points worth noting are that at times you may borrow money and make no repayments and this creates a reverse amortization or ‘growing loan’ effect. That said, you can also pay the interest and in that case the loan doesn’t grow.
Equity release loans are underwritten on the borrowers age and the value of the property, because there isn’t an expectation of repayment you don’t have to qualify for the loan based on earnings the way you would with a regular mortgage.
To find out more you can make an enquiry about an equity release mortgage here