Equity Release Southport - Lifetime Mortgage Near Me

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

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Equity Release in Southport

Equity release in Southport is another form of loan. Thousands of pensioners and homeowners up and down the country turn to equity release in Southport when they are in need of some extra cash.

With equity release in Southport, you release the equity that has built up in your home, whilst being able to remain living in your home for as long as you want to.

With equity release in Southport, you will never be asked to move home or sell up.

You can enjoy the equity you release on your home on whatever you want, and do not have to repay the loan until after you pass away or alternatively move into a care home.

You do not have to repay a penny whilst you are still alive [1].

Once you pass away or move into a care home, your home will be sold. Once your house has been sold, the proceeds from the sale of your home will pay off the equity release loan.

Remember, as with any type of loan or mortgage, you will be charged interest on your equity release loan.

Interest will be charged annually or monthly, depending on the terms and conditions of your equity release loan.

The interest you are charged on your loan will roll up and turn into compound interest each year.

This compound interest will increase the overall loan amount significantly, meaning that the longer your loan continues, or the longer you live, the more you will owe.

The proceeds from the sale of your home should almost always cover the loan amount.

However, if it does not then the no negative equity guarantee will kick in.

The no negative equity guarantee ensures that even if your home decreases in value for whatever reason, and no longer covers the loan amount, then your loved ones and next of kin(s) will never have to pay off the loan themselves [1].

There are two major types of equity release loans throughout the UK. These are known as a lifetime mortgage and a home reversion plan.

Both are very popular, although lifetime mortgages are by far the most popular option, as you remain the sole owner of your property with lifetime mortgages.

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Why do people opt for equity release in Southport?

The best thing about equity release in Southport is that there are very few limitations when it comes to what you can spend your equity release funds on.

An increasing number of pensioners are finding themselves short of cash, due to the increase in cost of living ever since the covid pandemic.

Not only have weekly food shops increased, but bills and fuel prices have too.

This means that the state pension, and many private pensions simply do not stretch as far as they used to [2].

Despite the fact that they might not be cash rich, a lot of pensioners and homeowners over the age of 55 years old are sitting on a significant amount of equity in their home.

For many homeowners and pensioners, selling up and downsizing simply is not an option.

Not only is buying and selling and moving home very stressful, but it puts a lot of pressure on you both mentally and physically.

This is especially the case for those later in life. This is where equity release in Southport comes in.

Equity release in Southport allows you to release the money from your home without having to sell up or downsize [2].

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What can you spend your equity release funds on?

You get to spend the money you receive on whatever you want.

Whilst you are asked and expected to make your equity release adviser aware of what you plan on spending your money on, there are very few limitations in place.

Whilst some plans and lenders have more restrictions in place than others, most people find that their lender is quite flexible when it comes to what they can spend their money on.

Most people who opt for equity release in Southport and across the rest of the UK spend the money they receive on making some home improvements.

These home improvements could include an extension, a new landscaped garden or making your home more accessible for you as you age.

This might include things such as a new stair lift, a wet room downstairs or some ramps or handrails.

Remember that your equity release loan continues for as long as you live, so your home needs to be accessible.

Alternatively, you might choose to spend your equity release funds on a better lifestyle for you and your loved ones.

This might include a nice holiday for you and your family, a new car, or a membership for you and your family to a gym or health club.

Finally, some people choose to spend their equity release funds on their loved ones.

This might include giving your money to your children to help with the cost of living, or alternatively giving your money to your grandchildren to help with the cost of further education, or to help them put a house deposit down.

This way, you get to watch your loved ones enjoy your inheritance, rather than leaving it to them as inheritance.

Please call our 24-Hour Helpline: 0330 058 1579

How much does equity release in Southport cost?

If you are considering equity release in Southport, then you need to be made aware that there are a number of set up costs involved.

These set up costs include things such as the cost of an equity release solicitor, an equity release adviser and the cost of a home valuation fee.

A home valuation fee is usually required to be paid upfront. This costs approximately £100 – £200 and is required in order to determine how much your property is approximately worth.

Once your adviser and lender has a figure, then they will be able to determine exactly how much you might be able to release from your home.

You will also need to pay for the cost of an equity release solicitor. This costs approximately £1,000 to £3,000 depending on how expensive your equity release solicitor is.

Some solicitors ask to be paid before you receive your equity release funds, whereas others ask you to pay them once you receive your funds.

You will also be charged for an equity release adviser, although your lender will usually work out an agreement with your adviser to process their payment through the loan itself, meaning that their fee will be added to the overall loan amount as a small percentage.

If you are worried about the upfront costs of opting for equity release in Southport, then speak to your qualified equity release adviser for more advice and support.

Please call our 24-Hour Helpline: 0330 058 1579

What is the no negative equity guarantee?

The no negative equity guarantee is in place for anyone who is worried about their home decreasing in value and no longer covering the loan amount.

As your loan will be paid off via the sale of your home, your home needs to hold its value, or ideally increase throughout the duration of your loan.

If your home does decrease in value and fails to cover the loan amount (plus any added interest) then your loved ones might be worried about being responsible for paying off the difference.

However, this is where your equity release no negative equity guarantee steps in.

Instead of your loved ones finding themselves responsible for paying off the difference, your lender will be – no matter how much this comes to.

Please call our 24-Hour Helpline: 0330 058 1579

What is the Equity Release Council?

The Equity Release Council governs the equity release industry, and maintains standards and values across the industry to ensure that all lenders, advisers and solicitors are offering fair and transparent products and services [3].

Your equity release adviser should be a member of the Equity Release Council, as should your equity release solicitor.

All players across the industry should also be monitored by the Financial Conduct Authority, who also ensure that all players offer fair products which work in the best interests of the public.

Speak to the Equity Release Warehouse Team

The team at Equity Release Warehouse are always on hand to answer any equity release related questions and provide you with all of the advice and support you need to make an informed decision.

As per the FCA’s regulations, it is never your equity release adviser’s job to put any pressure on you to release equity from your home.

It is simply our job to inform you of the best products on the market and the pros and cons associated with equity release.

We have a helpful website with lots of informative blogs and pages, which should give you a good idea and insight into how the equity release process works, as well as whether or not equity release in Southport and the rest of the UK is for you.

We have our very own equity release calculator which will also help us work out exactly how much you might be able to release from your home, using the most recent estimate of your home’s value.

Call our team today on 0330 058 1579 or visit our website online by searching for www.equityreleasewarehouse.com.