Just equity release (A 3 point review)

In this brief blog, we will cover just equity release (previously known as just retirement equity release).

just equity release

just equity release (previously known as just retirement equity release) is an equity release provider in the UK. just equity release (previously known as just retirement equity release) provides both a lump sum and drawdown lifetime mortgage.

You will have to be over 55 to be eligible for the just equity release (previously known as just retirement equity release) products.

Just retirement equity release

Just retirement equity release has now rebranded to just equity release.

A lifetime mortgage is a mortgage which allows you to release some or all of the equity in your home. The Just lifetime mortgage will offer you either a lump sum or a drawdown lifetime mortgage which can be accessed to release more equity when you need to.

The Just lifetime mortgage will also allow you to make monthly mortgage repayments towards your just lifetime mortgage which contains only interest repayments which will reduce the amount of interest being charged on your just lifetime mortgage. These monthly mortgage repayments can either contain some of the monthly interest due or all of it.

The just equity release (previously known as just retirement equity release) lifetime mortgage will be repaid when you die or move into long term care.

Taking out the just equity release (previously known as just retirement equity release) lifetime mortgage may affect your eligibility for means-tested benefits, your income tax position and the amount of money you are able to leave to your family in your inheritance.

the amount you leave behind in your estate i.e. its value will be reduced,

your entitlement to state benefits, and

your tax position.

Eligibility requirement for the just equity release (previously known as just retirement equity release)

You will need to be at least 55 years of age for you to get a just equity release (previously known as just retirement equity release) product. If you are borrowing with someone else then the youngest borrower will also need to be at least 55 years of age.

The property will have to be a standard construction rather than a non-standard construction. The property must be in the UK and must be your main residence.

The property value must also be a minimum of £70,000 for you to get the just equity release (previously known as just retirement equity release). The age of the property will also be considered.

The maximum you can borrow will be £800k for properties in every part of England aside from Northern Ireland where the maximum you can borrow is £250k. The minim you will be able to borrow from just equity release (previously known as just retirement equity release) is £10k and £30k if you plan on making monthly mortgage repayments.

just equity release (previously known as just retirement equity release) monthly interest repayments

If you want to make your monthly mortgage repayments which will constitute of only interest then you can do this by selecting how much of the monthly interest due you want to pay per month and setting up a direct debit. The minimum you can pay back each month towards the interest charges on your just equity release (previously known as just retirement equity release) is £25.

If you choose to repay some or all of the monthly interest due on your just equity release product per month then you will be eligible for a reduction to the roll up interest rate you are due. The reduction in the roll up interest rate will be based on how much of the interest you are repaying each month.

You can also choose to get a mortgage repayment holiday from making your monthly interest repayments to your just equity release ( previously known as just retirement equity release) product. This mortgage repayment holiday can be as up to 3 months in a 12 month period. You need to have a one months notice before starting your mortgage repayment holiday. The interest not paid during your mortgage repayment holiday will be added to your mortgage balance, rolled up and charged compound interest.

You are also not obliged to continue making the monthly mortgage repayments on your just equity release (previously known as just retirement equity release). You can simply stop making repayments altogether and switch your just equity release (previously known as just retirement equity release) product to a roll-up interest product.

The mortgage rate on your just equity release (previously known as just retirement equity release) may be adjusted based on this. If you stop making your monthly repayments on your just equity release (previously known as just retirement equity release) you cannot restart them

If you miss your monthly repayments on your just equity release (previously known as just retirement equity release) and you continue to miss repayments then after 6 months your just equity release (previously known as just retirement equity release) lifetime mortgage will be converted to a roll-up interest lifetime mortgage and your mortgage rate may change.

How is interest calculated on the just equity release (previously known as just retirement equity release) product?

The interest rate charged will be set by just equity release (previously known as just retirement equity release) and will be displayed to you in a key facts illustration document before you agree to the equity release product being provided by just equity release (previously known as just retirement equity release).

The rate is fixed and guaranteed not to change over the lifetime of the mortgage however If you are eligible for additional advances in the future, the interest rate for those advances will be set at that time and may be higher or lower than the rate on the initial advance. The interest rate could also change if you stop making monthly payments.

Interest is charged on a compound rate structure. This means interest is charged on previous interest charges which has built up from when you took out the just equity release scheme.

What fees does the just equity release (previously known as just retirement equity release) product have?

You may have to pay:

• property valuation fees
• Legal fees
• Mortgage application fees
• Advisor fees

Getting a just equity release (previously known as just retirement equity release) product

If you want to get a just equity release (previously known as just retirement equity release) product then you should speak to a suitable equity release advisor who may be able to advise you on your eligibility for the just equity release (previously known as just retirement equity release) product.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.