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Key Partnerships: Equity Release Interest Payment Options

Retirement news for financial advisers and paraplanners

15 Aug 2018

Key Partnerships: Equity Release Interest Payment Options

The roll-up of interest is a common concern for some clients taking a lifetime mortgage, especially if they are looking to leave an inheritance for their loved ones.  There may be a solution!

With some lifetime mortgage plans, clients can choose to pay part or all of the interest each month, this feature is called 'interest serviced'.

  • If clients choose to pay all of the interest each month, the interest will not roll up.
  • If clients choose to pay part of the interest each month, it will reduce the impact of the roll-up interest.

The interest payments are not compulsory so if a client decides they do not want to make these payments anymore, the plan can be converted to interest roll-up.

If you have clients concerned about the impact of equity release on their estate, don't forget to check out our Remaining Equity Calculator.  If you would like to discuss a potential case call us on 0800 138 1663 or fill out the 'request a call back form' and we will contact you at your chosen time.

REMAINING EQUITY CALCULATOR >>

 

REQUEST A CALL BACK >>

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