Mortgages
Taking out a mortgage is probably the biggest financial undertaking you will ever make.
We therefore believe that advising clients on any type of debt must come before other planning issues such as investment advice.
Naturally, you will want to know which mortgage is best for you. Happily, there is some choice although not as much as was available pre Credit Crunch. - There are however some very good products if the equity in your property is in excess of 25%.
Identifying which mortgage is best for you can be difficult. We are linked to specialist providers and can quickly scour the market to find which mortgage is most appropriate, given your financial circumstances, plans, attitude to risk and other preferences. Whether you are moving home, remortgaging, buying a second property, consolidating debt, planning for school fees, releasing equity or even a first time buyer, the City Capital mortgage specialist will be able to advise you on the many alternative options.
What types of mortgage are available?
The most popular mortgage types in the UK tend to be “tracker” and “fixed rate”
We will take you through the pros and cons of these as well as all other available mortgage accounts such as Reserve and Offset – can be very useful for future school fee planning.
What mortgage is right for you?
Regardless of what mortgage needs you have, it is also important for you to understand the difference between capital repayment and the risks associated with interest only mortgages?
It will make sense to understand the basics and have some idea of what mortgage type you want, before you meet with us. Again the “pros and cons” will of course be fully discussed.
Equity Release
Greater numbers of people are turning to equity release mortgages to enable them to free up some of the value in their properties.
Many older people are asset rich but cash poor. If you have a substantial amount of money tied up in your main asset and you want to get your hands on it, you could always sell up and buy a smaller home. But many elderly people would rather not sell the family home.
Equity release: a sensible solution?
Equity release can offer a sensible solution for the over 55s who want to supplement their income in retirement, fund home improvements, or simply pay for the holiday of a lifetime, for example.
Equity release has been around for a while, but many consumers have been wary about it in the past. Now, however, both lifetime mortgages and reversion schemes are regulated by the Financial Services Authority (FSA). Many equity release lenders are also members of trade body Safe Home Income Plans (SHIP).
Safe Home Income Plans
Safe Home Income Plans members have pledged to observe the SHIP code of practice, which guarantees the safety of all their products. You reserve the right always to live in your property until you die or have to go into a nursing home. SHIP equity release also comes with a no-negative equity guarantee. This means that no matter what happens to property prices, your family or estate will never be left with a debt that cannot be repaid by the sale of your property, providing peace of mind for you and your family.
How equity release works
Equity release can provide you with a regular income, or a cash lump sum. In return, you take out a loan which is paid off when the property is sold on your death. Or you can choose to sell a proportion of your home in return for a sum of money. The first type of equity release mortgage is known as a lifetime mortgage, while the second is called a reversion scheme.
Some benefits of equity release
- Can cut the inheritance tax bill faced by your estate
- Allows you to free up cash
- Increased competition means interest rates are falling
- Enables you to stay in your own home
Some risks of equity release
- A big commitment
- Will reduce the inheritance you leave your family
- Can impact on state benefits