Frequently Asked Questions
What are reverse mortgages?
Reverse mortgages (sometimes referred to as Home Equity Release loans, Lifetime Loans or Reverse Annuity Mortgages) allow senior homeowners to access equity in their homes for whatever purpose they desire, without the requirement that the loan is serviced from income. That is, the interest on the loans is not required to be paid as you go but added to the loan balance and paid when the property is eventually sold.
What value would Senior Solutions offer me?
We aim to provide relevant, meaningful, no-pressure advice to enquirers who may have limited knowledge of the options potentially available to them.
Our clients appreciate our honest advice, attention to detail and the time we spend explaining their options and ensuring they understand the reverse mortgage product. We also assist them with completion of the application forms, should they decide to apply, as some parts can be a little confusing if the applicant is not familiar with the terminology.
We currently have a mortgage. Are we eligible for a Reverse Mortgage?
You may be eligible for a reverse mortgage, provided your current mortgage can be repaid from the proceeds of the reverse mortgage.
Our property is held in a Trust. Can we still access a Reverse Mortgage?
Yes, provided all Trustees are willing and able to sign the mortgage / loan documentation and provide identification documents.
How much could we borrow?
This will depend on the age of you and / or your partner / husband / wife, and the value of your home. Other factors including location can have a bearing on the level of finance available.
What are the costs to set-up a Reverse Mortgage?
Depending on how it is set-up, there are different fees that may apply. However, for all reverse mortgage applications there is an application fee and your own legal costs. There may also be the cost of a Registered Valuation, depending on the amount you want to borrow and the value of your home.
As the fees can change, we recommend you give us a call to find out the current fees / charges that may apply.
Will I still own my home?
Yes, ownership of your home remains with you (or your Trust).
How much will be left for our estate when we die?
That will depend a range of factors including the amount of money you borrow, the interest rates applied during the term the finance, how long the loan is in place for and the value of your property when the finance is repaid. We provide a Loan Projection based on how you think you might want to borrow and other factors, so that you can see the numbers for yourself before an application is submitted.
Can the loan be transferred if we change properties?
Possibly. You will need to make an application to have the loan transferred, and the new property will need to meet the required criteria and minimum value.
Is a bank a better option?
A standard mortgage loan from a mainstream bank will generally have a lower interest rate and can be a good option for people that have enough income to make the loan repayments. However, the majority of people we see who want to access equity in their home do not want to worry about making loan repayments, which is why a reverse mortgage is a preferred option.
If you have any other questions, or would like to discuss one of the above questions in more detail, please do not hesitate to contact us on the Freephone number or email address below.