How Equity Release is helping Mortgage Prisoners

 

47,000 Home owners stuck on expensive home loans are defined as mortgage prisoners by The FCA

The FCA has published it’s mortgage prisoner review, which was commissioned by the government.  The report has found there are 47,000 homeowners stuck on expensive home loans that they cannot afford to get out of.  This is just the tip of the iceberg as there are 195,000 mortgages in closed books with inactive firms, 34,000 are in payment shortfall and 18,000 are near the end of their mortgage term with no adequate repayment strategy or have a payment shortfall. these borrowers wouldn't be able to switch to a new deal, even if they were with an active lender.    

Mortgage prisoners are homeowners trapped on pricey mortgage deals, unable to switch to cheaper ones mainly because they don't pass current strict affordability tests. Typically, they took out mortgages with lenders before the 2008 financial crash when lending rules were more relaxed. Some have no way to repay interest only mortgage as insufficient checks were made on repayment strategies when the mortgage was originally taken out. Borrowers have paid tens of thousands more than they needed due to rules, restrictions and stringent mortgage criteria.

There are so many older mortgage prisoners who are vulnerable and worrying about what is going to happen to them when their interest only mortgage comes to an end and they still have large outstanding sums to pay.

Many clients are turning to Equity Release as a solution to ease their financial burdens when they have come to the end of their agreed mortgage term.

What does the Equity Release solution look like?

The solutions are limitless. Equity Release can be used to help to use the wealth in the property to repay the residential mortgage, whilst allowing the home owner to remaining in their own home.

It can also help provide a drawdown income or lump sum to reduce other financial burdens and improve retirement lifestyle. There are also options around making interest repayments or rolling up interest.

At The Equity Release Lady, we provide an outstanding, client-focused service, driven to empower women navigating their later-life lending options, through the empowerment, education and support provided by our female advisors.

Our mission is to ensure that our Clients are completely confident and satisfied with the product that meets their individual needs and requirements.

Please contact us at The Equity Release Lady 

https://theequityreleaselady.co.uk/