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1. Dear *****, there is no legal impediment to your mother or the owner of the house in getting a mortgage on it. The reason for there being few lenders willing to sanction an equity release mortgage is that lenders have an aversion to this type of arrangement unless they specifically provide for equity drawdown mortgages. This is because mortgage brokers like performing mortgages which provide for a monthly payment and which are 'performing' assets on their books. Unless, there is a specific product which provides for equity release, many mortgage providers will not offer you a loan which remains un-performing and which does not allow for a monthly payment. Be aware that legally, there is a different type of legal regime under the Consumer Credit Act applicable to an equity release mortgage. So, many lenders don't offer this type of mortgage.
2. There are two types of equity release mortgages, namely a lifetime mortgage and a home reversion plan. Here is a link to a webpage where the different providers are named https://www.money.co.uk/mortgages/equity-release-mortgages.htm
3. Be aware additionally, that many mortgage brokers get a commission on monthly payments. So, equity release has a different system of remuneration of the mortgage broker. So hence, many don't offer it.
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