FREQUENTLY ASKED QUESTIONS
Through our considerable experience in the Equity Release market, we have compiled a series of frequently asked questions to give you further information. If your question isn't answered, please do not hesitate to contact us, so that we can see how we ca help you.
Is Equity Release right for me?
Will I lose my home?
If you are taking out any kind of Lifetime Mortgage with Viva Retirement Solutions then you will always own your property.
Could I leave a debt behind to my family?
No! At the very worst there will be nothing left in terms of property value, but even if there is a debt, this will be wiped off completely by the lender. You can also select a guaranteed percentage of your home is left behind
Will there be anything left?
This will depend on the amount you borrow, when you borrow it and how long you live for. It is also dependent on your property value as any increase in value over the years will reduce at least part of the interest accrued.
Can I repay at any time?
Yes, although this is deemed as a lifetime commitment. If you come into some money there will be a facility to repay all of the amount owed early, but there may be early repayment charges involved.
Why is the interest rate higher than the short term interest rates?
As suggested by the title a lifetime mortgage is deemed a commitment for life and so each lender has to look at the long term interest rates and come up with a rate that will reflect the coming years. This is because the interest rate is fixed for life from when you take your money – so that you know what would be owed in the future at any given point. Short term interest rates are currently very low, but it was not too long ago that they were also very high and this prospect needs to be accounted for in the interest rate you are given.
Is Equity Release Safe?
The right to remain in your home for as long as you choose.
The freedom to move to another property without financial penalty (subject to lenders' criteria).
That you will never fall into negative equity no matter what happens to house prices in the future.