Houseproud - What Type of Loan

What Type of Loan

Equity release is the term used to describe a different way in which you can benefit from the value of your home without having to move out of it.

The FSA Fact Sheet “Raising money from your home” explains some of the advantages and disadvantages of equity release schemes and some important things to think about beforehand.

HIT (The Home Improvement Trust) ensures that all loan applications are carried out in line with the Financial Services Authority (FSA) and provides access to loans that are affordable and risk-free from regulated high street lenders who have empathy for the needs and concerns of older and disabled people. These loans are specially designed to meet the needs of homeowners or leaseholders who are either 60 or over, disabled, or who live with a disabled person. There are three loans available which must be a first charge secured against the value of the home:

Capital-and-interest repayment
Interest only
Interest roll-up (where interest is compounded and no money is paid until sale of the property)

For the Current interest rate for loan options click here.

All loans carry a guarantee of no repossession during the time the property is the principal home of the applicants. HIT arranges for an Independent Financially Qualified Person to write to you, free of charge, with any guidance you may require to help you choose the most appropriate payment option and a “no negative equity” guarantee.

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