When would the plan need to be repaid
It would be repaid from the proceeds of the sale of your property, either on death (with a couple on the death of the last survivor) or following a move into permanent long-term care.
How much money will I owe the provider when the plan finishes?
Providing you've maintained your monthly repayments throughout your plan, you'll only be required to repay the original amount borrowed when the mortgage ends.
All SHIP plans carry a ‘no negative equity guarantee’. This means that the amount owed can never exceed the value of your property
How much money can I borrow with an equity release plan?
The amount you can borrow depends on the value of your property, your age and sometimes health. The older you are the greater the cash sum that can be released.
Most providers will release a set percentage based on your age., for example, a 60 year old could release 20%, a 65 year old 25% and so on. The amount available varies between providers.
What impact would changing house prices have on my plan in the future?
You'll keep the full benefit of any increases in the value of your property. If the value of your property falls, the amount of capital available after the loan has been repaid will also decrease.
What impact will equity release have on my inheritance tax liability?
An interest only lifetime mortgage could reduce your inheritance tax liability as the amount outstanding on the loan is deducted from the value of your estate before your tax liability is calculated.
Will I still be able to leave an inheritance?
The amount of inheritance available will be the difference between the proceeds from the sale of the house and the amount outstanding on the loan when it’s redeemed.
Property prices could be higher or lower than they are today when the property is eventually sold so we can't predict what inheritance will be available.
