Every day, many a site with an elaborate demonstration of the different aspects of the release equity in house facility is popping up on the net to quest the queries of the retirees. Still, they can not help but throw a salvo of questions towards the financial pundits who have enough experiences regarding this issue. The most common of these questions is if the equity release facility and mortgage can co-exist at all.

Generally, the mortgage should be fully paid if a person wants to be accepted by the lenders for an equity release scheme. In case, there is any existing mortgage, the equity release program must ooze out enough cash to make a full repayment of the current mortgage loan. The current value of the property and the age of the youngest property owner (he or she must be minimum 55years old) can ascertain if the flushed out equities can cover the current mortgage loans.

Paying off the mortgage loan implies that no monthly payment is to be made in future and it is off course a great relief for the equity release policy holders. In this way, one can avert the ghost of repossession as well as the adverse credit records. Generally, in case of the existing mortgages, the to-be-converted equities are calculated by making a deduction of the current mortgage loan from the value of the property at the ongoing market rate.

In case of the existing mortgages, the lenders figure out if the size of the mortgage is at least equal to the value of the to-be released equities. If it is fond that the released equities are not capable of meeting the full mortgage balance, then the lenders consider if any additional fund such as savings or investment can bridge the gap or not. If there is a possibility of pursing the gaping hole by releasing equities, the lenders accept the plea of the retired homeowners.