Reverse Mortgages Explained (Retirement Equity Release Loan)
Also known and better described as a "Retirement Equity Release Loan" and therefore only available to "over sixties". This type of mortgage is aimed at the retired over 60 year old market where the equity in the property is released by advancing the client funds based on this. This may be in the form of a lump sum or as a “line of credit”.
Interest is accrued and also compounded but the client is not required to ever make any repayments.
The mortgage is only settled on the death of the client, or if the property acting as security is sold.