Guildford mortgage broker boosts Equity Release offering

Tuesday, 16th June, 2020

Award-winning Guildford mortgage adviser, Complete Mortgages, has strengthened its Equity Release mortgage team after one of its brokers secured the coveted Certificate in Regulated Equity Release (CeRER) at the beginning of June.

Lee Cousens, who was been with Complete Mortgages since 2017 after the Guildford broker recruited him from Countrywide Mortgage Services – where he was one of the UK’s top performing brokers – passed the two-unit exam with a distinction and a merit.

The move enables Lee to offer specialist Equity Release advice on lifetime mortgages and Retirement Interest Only (RIO) mortgages, both of which have experienced significant growth in 2020.

According to the Equity Release Council, an organisation that represents the Equity Release sector and exists to promote high standards of conduct and practice in the provision of advice on Equity Release, £1.06bn of property wealth was accessed via Equity Release products in Q1 2020, up 14% from £936m a year earlier.

The findings suggest that Equity Release is increasingly becoming an accessible and popular way in which to fund retirement income, one-off expenses and lifestyle purchases including holidays.

On bolstering Complete Mortgages’ Equity Release team, Lee comments: “Equity Release is a growing sector and there is a wide range of Equity Release mortgage products continually coming onto the market. With the CeRER qualification under my belt, I’m now able to offer Equity Release consultations at the highest level, manage the increase in Equity Release enquiries we’re receiving on a daily basis and reinforce Complete Mortgages’ reputation as an expert in this field.”

Mark Finnegan, Director at Complete Mortgages, adds: “Equity Release has proven to be a popular way in which to fund later years by a large section of society. Complete Mortgages’ Equity Release applications have increased substantially over the last 12 months and I only expect this upwards trend to continue. Lee’s certification will not only enable Complete Mortgages to meet this growing demand but it also reaffirms our position as a specialist mortgage broker.”

For more information or to apply for an Equity Release mortgage contact 01483 238280 or email info@complete-mortgages.co.uk.


Equity release mortgages revisited

Monday, 17th February, 2020
equity release

The equity release mortgage is becoming increasingly popular. It’s also playing a significant role in helping older people pay off debts and mortgages, with figures suggesting that equity release is seeing £10m ‘withdrawn’ from homes each day.

Those reading this who are new to the world of equity release may be asking themselves ‘what is equity release?’ and ‘how does equity release work?’ Well, if that is you, then read on as this quick guide to equity release mortgages will fill in any gaps you might have.

1. What is equity release?

Equity release is a way in which older people, typically those aged from 55-60 and upwards, can unlock the value of their home – or ‘cash in’ – without needing to actually move home.

2. How does equity release work?

There are two main routes into equity release: lifetime mortgages and home reversion plans.

The lifetime mortgage is typically the most popular route, and involves borrowing a portion of your property’s value at a fixed or capped interest rate. You don’t make repayments. Instead, you make a lump sum payment – which includes compounded interest – when the house is sold. There is an opportunity to get a lifetime mortgage with a drawdown option built in, whereby you can pay back the interest and sometimes even the capital, too.

Home reversion plans are generally geared towards those aged 65+ and will see a lender pay you a tax-free lump sum whilst allowing you to remain in the property – rent-free – until you die. When this happens, proceeds from the sale are split based on the percentage split agreed when the home reversion plan was taken out. If the property rises in value, so too does the amount the lender gets when the property is sold. Please note that Complete Mortgages does not give advice on home reversion plans.

3. How much can I borrow?

This will depend on your age and the value of your property. Your health is also likely to be taken into consideration. A good mortgage broker will be able to help you establish this once they have a clearer picture of you and fully understand your circumstances. As a Guildford mortgage broker that manages a high volume of equity release mortgages on a daily basis, we’ll be able to assist you at every step of the equity release mortgage application process.

4. What next?

Equity release mortgages are very individual-specific, so our advice to anyone thinking of going down this route would be to arrange a meeting with a specialist mortgage broker, who will be able to source a selection of competitive equity release mortgages for you.

Just make sure that you’re fully aware of any mortgage broker charges along the way. Complete Mortgages, for example, only charges a one-off flat fee of £699 and for that we’ll handle the entire mortgage application from the beginning until you receive the money.

Whether you’re looking for an equity release mortgage or any other form of complex mortgage, Complete Mortgages will be able to help. Contact the team on 01483 238280 or email info@complete-mortgages.co.uk.


Equity release. It could be in your interest.

Monday, 6th June, 2016
home reversion

It’s funny how things change. Sometimes it seems to happen in the blink of an eye. At least that’s how it felt when interest-only mortgages became less common (not to mention less available) as people decided that it probably was a good idea to make monthly repayments rather than put off paying back their mortgage until a later date.

Of course, the well-documented financial crisis played no small part in this shift in attitude, bringing the long-term picture – or the lack of it for some people – into sharp focus.

But interest-only mortgages dominated the mortgage market for many years, and that’s many years whereby homeowners didn’t ‘chip off’ their mortgage capital, instead favouring to bet on growing property prices that, when the time came, would enable them to pay off their debt by either downsizing or remortgaging.

Well, for many that time has come (or is at least around the corner). Interest-only mortgages are maturing and it’s this realisation that has promoted a rise in equity release mortgages – or lump sum equity release plans.

The good news is that those who bet on the continued growth of the property market won’t be disappointed; property prices have increased significantly, generating wealth for the majority of UK homeowners.

Similarly, figures from the Equity Release Council* revealed how the value of equity release lending has also increased, having amounted to almost £394m in the first quarter of 2016, a increase of 21% year-on-year and the highest quarter one lending figure ever recorded. And the fact that over 5,000 equity release plans were arranged during that same period indicates that it’s only going to grow in popularity.

Quite simply, equity release deals enable homeowners to ‘extract’ the value from their property and pay the bank the remaining balance on the mortgage. And when you consider that the Financial Conduct Authority places the average shortfall owned by interest-only mortgage customers at £71,000**, then this approach to freeing up capital is likely to become a popular option for a number of homeowners.

So, what are your options? Well, there are generally two: lifetime mortgages and home reversion.

Lifetime mortgage

With this option, you take out a mortgage secured on your property and ring-fence some of the value of the property as inheritance for your family – or you can choose to make repayments or let the interest roll up. The loan amount is then paid back when you pass on or when you move into full time care.

Home reversion

Here, you sell part of – or all of – your property in return for a lump sum. You are still entitled to live in the house and in the event of death, the property is sold and the proceeds are shared based on the ownership agreement.

Of course, we appreciate that this is a significant topic and one that you will need to research fully before making a decision. Also, it’s important to remember that equity release products only apply to those aged 55 and over. So, if you’re thinking of applying for an equity release mortgage then contact a member of the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk.

Complete Mortgages also specialises in a wide range of mortgages, from equity release to first time buyer mortgages and commercial mortgages through to bridging loans.

*http://www.equityreleasecouncil.com

**http://www.theguardian.com


Are you retired and worried about your future?

Wednesday, 14th November, 2012

There are many people just like you either in retirement or approaching retirement, who are worried about their future.  If you are a homeowner you may be able to turn the money in your home into a tax-free cash lump sum you can use to enjoy your retirement.

House prices have increased over the years meaning many people now have substantial equity in their homes. Here at Complete Mortgages we can help you release this equity in your home giving you a lump sum to spend as you choose.

Lifetime mortgages are a great option, allowing you to keep 100% ownership of your home and live there for as long as you choose.  You do not have to make any monthly repayments during the term of the loan, as the repayment of the loan and interest on this loan are repaid by the sale of your property.  This does however reduce the value you have in your home and the amount of inheritance you leave will also be reduced.

You also have the option of a drawdown facility with this type of loan, allowing you to release more money in stages if you wish.  The additional money drawn down, as well as the additional interest, will again be added to the amount due to be repaid when the property is sold.

If you have sufficient income at present to make small interest payments then another option would be an interest only lifetime mortgage.  These types of products allow you to borrow money against your home in the same way as a lifetime mortgage, however you also have the option of paying some of the interest on a monthly basis.  This can be anything from 1% – 100% of the monthly interest.  This will reduce the amount owed when the property is sold, meaning you will leave a bigger inheritance for your family compared to the above lifetime mortgage.  These products allow the flexibility to switch to a full lifetime mortgage at any point.

As well as lifetime mortgages, there are also a number of lending into retirement products available.  These products allow borrowers to choose between paying just the interest on their mortgage (interest only) or paying off the loan as well as the interest through the monthly payments (capital and interest repayment).

There are a number of things to think about when taking out any type of mortgage or releasing equity in your home.  For example releasing the equity in your home could affect your entitlement to some state benefits and may affect your tax position.  Here at Complete Mortgages in Guildford, Surrey we provide a full advice service and guide you through all the options available.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Lifetime mortgages are equity release products. To understand the features and risks, ask for a personalised illustration.

We typically charge a fee of £349.00 for arranging a lifetime mortgage.