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Do I Need a Good Building Insurance Policy Before Getting an Equity Release Mortgage?

All lenders with capital exemptions require that you have building insurance in order to obtain a mortgage. This type of insurance covers the structural aspects of your home, such as the walls, ceiling, floors, and accessories, but not the contents. It is important to make sure that the insured sum is sufficient to cover any losses or damage caused by a fire or other risks associated with residential property. You must also confirm that you will maintain building insurance until the end of the capital release plan.

Equity release mortgages are a great way for homeowners aged 55 and over to access tax-free cash from the value of their home. The amount you can release depends on your age and the value of your home, and you can choose to receive it as a large lump sum or a series of smaller lump sums. It is important to use an accredited provider and seek advice from a qualified capital release advisor before applying for a lifetime mortgage or home reversal plan. When considering equity release, there are several things to take into account. Firstly, it is important to choose the form of capital release that is right for you and your family.

Secondly, it is important to be aware that freeing up capital may reduce the amount of inheritance that your beneficiaries might otherwise receive. Finally, it is important to be aware of any potential horror stories about releasing stocks by reading up on tips and advice. Life mortgages (a type of capital release) and mortgages that have only retirement interest are sometimes grouped together as “mortgages for later” or “loans for later” products. It is important to remember that any capital release company that has the Equity Release Council logo on its material must ensure that you can continue to live in your home until you die or move to a permanent care center.

Nigel Cook
Nigel Cook

Coffee expert. Hardcore social media fan. Wannabe tv junkie. Amateur web fanatic. Incurable internet scholar. Infuriatingly humble travel trailblazer.

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