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Money Tips Daily by Charles Kelly, former IFA and author of

Lifetime Mortgages vs RIO Mortgages – What Over-55s Need to Know About Equity Release

·26 min·2 clips
An equity release mortgage is an interest-only loan that lasts your lifetime, with interest rolling up if unpaid.
The episode begins with host Charles Kelly introducing guest Darren Cohen from Right Home Equity Release, setting the stage for a discussion on equity release and lifetime mortgages. Darren explains his background as a self-employed advisor with 18 years of experience in the field. He defines equity release as an interest-only mortgage that lasts for the borrower's lifetime, with repayment due only upon death or permanent move to care, and interest rolling up if unpaid. The conversation delves into common use cases, such as paying off debts, covering medical costs like a £6,000 monthly care fee, or helping family members with property deposits. Darren details the drawdown facility, which allows borrowers to access funds as needed to minimize interest accumulation. He discusses eligibility based on age and property value, with typical loan-to-values ranging from 35% to 55% depending on age. Protections like the no negative equity guarantee are highlighted, ensuring debt won't exceed property value. Interest rates are explained as being tied to 15-year GILT rates, currently around 6%, with options to pay interest to slow debt growth. Property considerations are covered, including limitations on sheltered accommodation and flats with onerous leases. Alternatives like retirement interest-only mortgages and downsizing are explored, with Darren noting their limitations due to affordability assessments and market conditions. The episode concludes with contact information for Darren, emphasizing his no-upfront-fee consultations and free benefits reports.

As heard by us

A clear, practical guide to equity release, downsizing costs, borrowing limits and lifetime mortgage safeguards.

The episode sets equity release and lifetime mortgages alongside the wider borrowing choices facing homeowners later in life, especially those with valuable property but limited day-to-day cash.

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Why you'd press play

Need to judge whether your home can fund later life without making downsizing look deceptively simple?

Read the full recommendation in PlayNext →
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