Glossary - Mortgage Roll Up Plans

Mortgage Roll Up Plans are Equity release products used to raise capital.
This is an equity release scheme and is a way for people to access finance or an income against the value of their home.
Mortgage roll up plans can allow the release of 20% of the property’s value, but as with everything it depends on such things as age, health and many other factors.

Example: UK Mortgage Roll Up Plans
Equity release schemes usually lend money against part of the value of the property (20%) the consumer then has the choice to pay only the interest back or to add the interest charged onto the loan. When the borrower dies, only then will the capital need to be repaid. If the interest is added to the loan rather than being repaid, it is known as rolling up the interest (roll up plans). Once the capital and any interest that has accumulated has been repaid to the lender then anything that is left can be passed on to family or heirs.

Useful Tip
By using a roll up scheme it means that no interest has tol be paid while the customer is still alive but remember both the capitol and interest will have to be repaid on death, check regularly to see exactly how much you owe. Whilst it can seem like a good way of obtaining cash quickly, relatives and loved ones will not benefit as much on your death.
In order to keep possession of the property relatives could decide to repay the debt early or on your death.

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