Equity Release Oxford - Lifetime Mortgage Near Me

Lifetime Mortgage & General Equity Release Advice in Oxford
Reviewed by Tom Philips

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Equity Release in Oxford

Equity release in Oxford and Oxfordshire allows you to release equity from your home, without the need to ever move out.

You don’t pay back a penny until you pass away or move into a care home. Once this happens, your home will be sold and your equity release loan will be repaid with the proceeds [1].

You will be charged interest on your loan, which will continue until you either pass away or move into care.

This means that the interest you are charged will turn into compound interest over time.

It’s important to understand that this will also need to be repaid, on top of your initial loan amount.

The great thing about equity release in Oxford is that your interest will be fixed.

This means that you’ll know exactly how much interest you will be charged at the very start of your loan, and this won’t change each month or each year.

You are also free to spend your equity release funds on whatever you want.

Some people choose to spend their funds on a better lifestyle, whereas some choose to spend their money on home improvements or helping their loved ones with the cost of further education or a house deposit. T

he great thing about equity release in Oxford is that the money you receive will be tax free, as it won’t be classed as income [1].

In order to qualify for equity release in Oxford, you need to be aged at least 55 years old, own your own property in the UK worth at least £70,000 and your property must be made out of traditional materials.

You are also able to release money if your home is a leasehold, although you must ensure that you have a number of years left on your lease.

Likewise, your home must be in reasonable condition and you must have your home recently valued [1].

There are two main types of equity release in Oxford, commonly known as lifetime mortgages and home reversion plans.

There are some big differences between these two types of equity release plans, so make sure that you understand the differences between the two before you apply for equity release in Oxford.

Your equity release specialist adviser should be able to explain the differences between the two for you.

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Types of Equity Release in Oxford

As discussed above, there are two main types of equity release loans in the UK. These are commonly known as lifetime mortgages and home reversion plans.

Let’s look at each type of plan in a little more detail below [2]:

1. Lifetime mortgages

Lifetime mortgages are the most popular type of equity release in Oxford. They work by allowing you the chance to release a significant amount of money from your home, which will be repaid once you pass away or move into a care home.

You will be charged interest on your lifetime mortgage, which will be added to the overall loan amount.

With lifetime mortgages, you won’t be asked to move out or leave, as long as you stick to the terms and conditions of your plan.

You will also remain the sole owner of the property. In order to qualify for a lifetime mortgage, you need to be aged at least 55 years old.

2. Home reversion plans

Home reversion plans work a little bit differently to lifetime mortgages. With home reversion plans, you have to sell a percentage of your home in order to receive your funds.

Whilst you still remain living in your home, the lender will technically own a percentage of your home.

This could be as little as 10%, or as much as 90%. The higher the percentage of your home you sell, the more equity release funds you will receive.

It is important to understand that if you opt for a home reversion plan, you will be selling a percentage of your home to the lender for less than market value.

This means that you won’t receive as much as if you were to sell your home on the traditional housing market. You need to be aged at least 65 years old in order to qualify for a home reversion plan.

What are the Costs of Equity Release in Oxford?

There are a number of initial set up costs associated with equity release in Oxford.

For example, in order to qualify for any type of equity release plan you will need to have a home valuation carried out on your property, which costs around £100 [3].

Likewise, you will also need to pay for the cost of a solicitor and adviser.

The cost of an equity release solicitor alone could cost you up to £3,000, so it is important to consider these initial costs before applying for equity release in Oxford [3].

Some equity release lenders will allow you to repay these initial set up costs once you receive your equity release funds, whereas some will simply deduct these costs off your total loan amount.

Your equity release adviser should be able to explain these costs in more detail before officially applying.

What Could You Achieve With Equity Release Oxford?

There are a number of things you can spend your equity release funds on.

The great thing about equity release in Oxford is that there are very few limits on what you can spend your money on, although you will always need to inform your equity release adviser on what you plan on spending your funds on.

Some people opt to spend their money on home improvements. This could include things such as a new kitchen, an extension or converting a loft.

Likewise, some people choose to make their home more accessible for them as they age. This could involve a stair lift, putting in a wet room, a stair lift or some ramps.

A large portion of those who release equity release funds spend their money on a better lifestyle.

Most people work their entire lives in order to enjoy their retirement, so choose to release money from their home in order to ensure that they are able to live the lifestyle they want.

This could include things such as a membership to a health club, a new car or a few more holidays.

Finally, others might choose to spend their money on helping loved ones with the cost of living, the cost of further education or putting down a house deposit.

Whilst you might not be able to leave as much inheritance by releasing equity from your home, you can choose to spend your funds on improving their lives whilst you’re still alive to see it.

Please call our 24-Hour Helpline: 0330 058 1579

Busting Myths About Equity Release in Oxford

There are a number of myths associated with equity release in Oxford.

Some of these myths have led people to think badly of equity release, or believe a number of things about equity release which simply are not true.

It’s important to bust these myths so that people have a clear and accurate understanding of how equity release works [4].

1. Equity release is not safe

One of the biggest myths surrounding equity release in Oxford is that taking out an equity release loan is not a financially safe option. This simply is not the case.

There is risk involved with any type of loan, and it is important to make sure that equity release is the right option for you and your family.

However, the Equity Release Council and Financial Conduct Authority ensure that the industry is fair and transparent, and that everyone is working in your best interest.

Please call our 24-Hour Helpline: 0330 058 1579

2. Equity release means that you’re unable to leave your loved ones any inheritance

Again, this is another myth surrounding equity release. Many people believe that by taking out an equity release loan, you are robbing your loved ones of their inheritance. This simply is not the case.

You can include inheritance protection on your loan, and your loan will always be protected by the no negative equity guarantee.

This guarantee ensures that even if your home decreases in value so much that it no longer covers the loan amount, your next of kin will never be left responsible for paying off the difference.

Therefore, your loved ones will never be left with any debt from your equity release loan, and any inheritance you plan to leave them will not be affected.

3. You can end up owing more than your home is worth

Again, this is simply not the case. You will never end up owing more than your home is worth as your loan should always be protected by the no negative equity guarantee.

In fact, the Equity Release Council makes it mandatory that all equity release lenders and loans include the no negative equity guarantee into their agreements, to avoid anyone ever owing more than their home is worth.

Please call our 24-Hour Helpline: 0330 058 1579

We could end up losing our home

Finally, it is a complete myth that you could end up losing your home through taking out an equity release loan.

With equity release in Oxford, you will never be asked to move out or leave your home, as long as you stick to the terms and conditions of your loan.

This is even true if you take out a home reversion plan, despite the fact that you sell a percentage of your home to the lender in order to receive your funds.