What is a reverse mortgage and is it right for you? Find out here.<\/p>\n
We\u2019ve had hundreds of people contacting us wanting to know about reverse mortgages and whether these products might be right for them.<\/p>\n
There are pros and cons to a reverse mortgage and you need the right advice to make sure you make the right choice.<\/p>\n
The good news is that the brokers we work with are experts when it comes to reverse mortgages and can help you find the right product to meet your needs.<\/p>\n
In this article, we\u2019ll be answering questions such as –<\/p>\n
Simply put, a reverse mortgage is a form of home loan that is specifically for pensioners or those who have retired, or are nearing retirement.<\/p>\n
It lets people over 60 turn the equity in their home into cash, that they can then use for any worthwhile purpose.<\/p>\n
These people are quite often asset rich, but cash poor. A reverse mortgage is also known as a senior\u2019s loan or senior finance and is fast becoming the most popular form of equity release in the country.<\/p>\n
Just like your standard home loan, a reverse mortgage is secured against your property. The amount you can borrow or \u2018release\u2019 is usually based on your age and the amount of equity you have in the property.<\/p>\n
Interest is charged on the amount you borrow, but unlike other loans, you don\u2019t have to make any repayments. The interest compounds over time and is added to the balance of the loan.<\/p>\n
You don\u2019t need to prove income to qualify for a reverse mortgage, but lenders are required by law to lend responsibly, so not everyone will be able to secure this type of finance.<\/p>\n
If you\u2019ve been refused a reverse mortgage, talk to one of the expert brokers<\/a> we work with. They may be able to help you with the right advice.<\/p>\n All lenders are different and have different lending criteria, but generally the older you are, the more you can borrow.<\/p>\n The maximum you would probably be allowed to borrow would be 15-20% of the value of your property, and most lenders allow you add 1% for each year past your 60th birthday.<\/p>\n Essentially this means that if you were 65, then the maximum amount of cash you could borrow would be 20-25% of your home\u2019s value.<\/p>\n You can take the loan as a lump sum, a regular income stream, a line of credit or a combination of any of these. It should be noted that a regular income stream or a line of credit is less costly than a lump sum.<\/p>\n If you\u2019re concerned about any of the disadvantages you\u2019ve just read through, first of all don\u2019t panic. There\u2019s a chance many of them won\u2019t even apply to you, and even if they do, the expert advisors we work with can help you safeguard yourself against the risks – make an enquiry<\/a> to speak to one of them today.<\/p>\n The minimum age for a reverse mortgage is 60. Some lenders have a maximum age limit, but a few have no upper limit at all.<\/p>\n There are some online calculators, but because everyone has different circumstances. At best they can only give you a rough idea of what you could expect.<\/p>\n This is where the advisors we work with come in. They are experts when it comes to reverse mortgages and can offer the right advice and find you the best deal.<\/p>\n To arrange a free, a no-obligation chat, make an enquiry<\/a> with us.<\/p>\n All lenders are different and each have different interest rates and fees. If you decide to borrow from a provider other than a bank, building society or credit union, they legally restricted not to charge more than 48% interest including all fees and charges.<\/p>\n This is why you should talk to one of the expert brokers we work with who have a working relationship with all lenders. They can offer the right advice and find the best deal. Make an enquiry<\/a> to find out more.<\/p>\n There are many reverse mortgage providers in the marketplace, the trick is to find the ones offering the best deals and interest rates.<\/p>\n This is where the brokers we work with come in. They have access to the whole market, not just a few select lenders, so they can find the best deal to suit your needs.<\/p>\n Contact us for a free, no-obligation chat.<\/p>\n Not all brokers are the same. Some have access to just a few lenders, whist others, like the brokers we work with have access to the whole market, and so they can find the best deals for your circumstances, even if you\u2019ve had bad credit in the past.<\/p>\n The brokers we work with have passed a 12 module training programme and are experts in their particular area.<\/p>\n We don\u2019t charge a fee and there\u2019s no obligation, just the right advice every time.<\/p>\nHow much can you borrow?<\/h2>\n
What are the advantages and disadvantages?<\/h2>\n
There are some significant advantages of reverse mortgages…<\/h3>\n
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There are a number of disadvantages to consider too…<\/h3>\n
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Are there age limits?<\/h2>\n
Where can I find a reverse mortgage calculator?<\/h2>\n
What are the costs of a reverse mortgage?<\/h2>\n
Who are the best lenders & providers?<\/h2>\n
Why should I talk to a whole-of-market broker?<\/h2>\n