Reverse Remortgages & Equity Release Remortgages

Homeowners may benefit by discussing reverse remortgages with a Remortgage Broker.

Reverse Remortgages offer a way to borrow against the equity in a property,  creating a stable continuous and tax free source of income without having to change ones current living conditions.

The key benefit of a reverse remortgage is that the borrower isn't required to repay any part of the loan as long as they remain domicile (living) in the house and equally maintain all of the terms and conditions of the reverse remortgage.

The reverse remortgage got its name from the inverse relationship between the property and accrued capital. Instead of making remortgage payments the lender pays the borrower. When the borrower permanently leaves; the owed balance does become due.

A unique feature of this remortgage is that instead of the debt reducing over the agreed time frame, the debt balance of a reverse remortgage grows larger over time.

Reverse remortgages differ greatly from Shared Appreciation Remortgages and are far more simplistic. Instead of the lender sharing the financial risk of the property over an anticipated appreciation curve, the lender simply releases the equity already accrued. This is why Reverse Remortgages are also called Equity Release Remortgages.

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