England, home of Lifetime Mortgages
Sometimes it is interesting to step back for a moment and reflect on the happenings in other countries.
Today, I stumbled across Responsible Equity Release, a UK site that specializes in lifetime mortgages, the British equivalent of a reverse mortgage.
The interesting thing about the equity release program is that while it has many similarities to the US program, some of the types of equitable releases are not available in the US. While a Roll Up Lifetime Mortgage is most reminiscent of the US reverse mortgage program, Fixed Repayment Lifetime Mortgage and Home Reversion Schemes do not exist in this country. In a Fixed Repayment Lifetime Mortgage, the amount to be repaid is decided upon before the mortgage is taken out. When the homeowner dies or sells the home, the amount due is the fixed amount that was determined at the offset. In a Home Reversion Scheme, the borrower sells all or part of the value of the property in exchange for a lump sum. When the borrower sells their home or passes away, the home is sold with the portion of the property still owned by the borrower going to the estate, and the rest going to the plan provider.
A fixed repayment lifetime mortgage program would probably be extremely popular in the states, as it avoids the interest rate calculations that borrowers must wrestle with when they choose between a fixed or an adjustable mortgage, Libor or HECM.
Many countries also have programs similar to the US reverse mortgage program. More to come.
Tags: England, Equity Release, global, government, hecm, Home Reversion Scheme, international, LIBOR, Lifetime Mortgage, mortgage programs, reverse mortgage, reverse mortgage programs, Roll-Up Lifetime Mortgage, world
