Equity Release Exmouth - Lifetime Mortgage Near Me

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

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Equity Release in Exmouth

Equity release in Exmouth is a form of loan available to those aged over 55 years old, who want to release some money from their home in order to live a more comfortable retirement.

By releasing equity from your home, you get the chance to spend your funds on whatever you want, without having to worry about watching the purse strings.

More and more pensioners are getting to retirement age and are struggling for money, with a rise in the cost of living and high interest rates. This is where equity release comes in.

A large percentage of homeowners over the age of 55 are sitting on a lot of equity.

This includes the initial deposit you put down on your property, as well as the monthly mortgage payments you have been making.

Additionally, house prices have seen a steady increase in value in the past 30 years.

This means that a lot of pensioners have a lot of equity built up in their home, which they would be able to release and spend on whatever they want should they opt for equity release in Exmouth.

With equity release in Exmouth and across Devon, you are not expected to make any monthly mortgage payments.

This means that you only have to repay the loan once you pass away or move into a care home [1].

Once this happens, you will then be expected to repay the loan in full, using the proceeds from the sale of your home.

This means that you have approximately 6 – 12 months for your loved ones to sell your home.

Instead of the profit going to them as inheritance, the proceeds from the sale of the home will go towards paying off the equity release loan.

Hopefully, the proceeds from the sale of your home will pay off the loan in full. If it does not, then the no negative equity guarantee will kick in.

This means that instead of your loved ones or next of kin(s) being responsible for paying off the remainder of the loan, your lender will be [1].

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

This interest will be charged each month or each year, depending on your type of loan and your lenders preference. This interest will then compound over the years.

This compound interest will significantly increase your overall loan amount, which will need to be repaid once you pass away or move into a care home.

There are two main types of equity release loans in Exmouth, known as both lifetime mortgages and home reversion plans.

These are both discussed below for you, as you will need to discuss the ins and outs of both with your equity release adviser.

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How long does equity release in Exmouth take to process?

It takes approximately 6 – 12 weeks for your equity release loan to process from start to finish.

The conveyancing process for equity release in Exmouth is very similar to that of the conveyancing process to buy a house.

Your equity release adviser and solicitor will work together to process your application and get your illustration set up [2].

This can take a number of weeks to process and will depend very much on how fast your solicitor is able to process your application.

You can expect to wait up to 12 weeks for this to process, depending on how complex or large your equity release loan is [2].

Once your equity release loan has been processed, your equity release solicitor will then process your loan and release the funds to you.

Please note that you should expect your funds to be sent through via your solicitor and not through your lender directly.

Please call our 24-Hour Helpline: 0330 058 1579

What are the two main types of equity release in Exmouth?

There are two main types of equity release loans across the UK. The two main types of equity release in Exmouth are lifetime mortgages and home reversion plans.

Lifetime mortgages are the most popular type of equity release across Exmouth and the rest of the UK.

They’re the most popular type of equity release because they allow you the chance to release equity from your home without having to sell a part of your home.

However, you will be charged interest on your loan by opting for a lifetime mortgage.

Home reversion plans are the second most popular type of equity release across Exmouth and the rest of the UK.

When you opt for a home reversion plan, you should be prepared to sell a percentage of your home to the lender in exchange for access to your funds.

How much you choose to release from your home will depend on how much equity you hope to receive.

The more you release and sell to the lender, the more equity and money you will receive.

You are able to release up to 80% – 90% of your home if you wish to do so, or you can opt to release as little as 10%. The more you sell, the more equity you will receive.

Despite the fact that you sell your home to the lender in exchange for your equity release funds, you will never be asked to move home or sell up at any point.

In fact, as per the Equity Release Council and Financial Conduct Authority regulations, no equity release lender or adviser ever has the right to ask you to move home or sell up at any point during the duration of your equity release loan.

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What can you spend your equity release funds on?

The best thing about equity release in Exmouth is that you are free to spend the money you receive on almost whatever you want.

Most people who opt for equity release in Exmouth tend to spend the money they receive on home improvements or home renovations, which could include things such as a new extension, a new kitchen or potentially a new wet room or stair lift.

Remember, once you take out an equity release loan in Exmouth then you will be expected to remain living in your home for as long as you live, whether that be until you move into a care home or pass away.

This means that you will need to ensure that your home is a suitable place for you (and your partner) to live as you grow older.

You might wish to landscape your garden, add in handrails, a stair lift or turn your downstairs bathroom into an easily accessible washroom.

Likewise, you can choose to spend your equity release funds on a nice family holiday for everyone, or alternatively a new car for you to enjoy.

Some people also take out what is known as a drawdown plan, meaning that they will receive a number of smaller payments each year or every few years.

This could go towards improving your lifestyle, ensuring that you can do a full weekly shop every week, join a health club or go travelling on holiday more often.

Finally, others choose to spend their equity release funds on their loved ones and family members.

More youngsters than ever are struggling with their savings and income, with the increase in the cost of living and increase in housing and rental costs.

Some people choose to spend their equity release funds on paying for their children’s or grandchildren’s further education.

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Are you able to make any early repayments to your equity release plan?

Yes, you are able to pay off some of your equity release loan early if you wish to do so.

However, it is important to understand that the amount you are able to repay early will be capped to a certain percentage of your loan, depending on your lender’s terms and conditions [3].

Most lenders across the UK allow you to release up to 10% [3] of your total loan amount before they start to charge you an early repayment charge or early repayment fee.

The terms and conditions of this loan will lay out exactly how much you are able to pay off early before you start to get charged.

Remember, you will be charged compound interest on your loan. Paying off a small percentage of your loan early will help to keep the amount of compound interest you are charged down to a minimum.

Please call our 24-Hour Helpline: 0330 058 1579

Speak to Equity Release Warehouse

If you are considering equity release in Exmouth, then you should speak to a member of the Equity Release Warehouse team for more help and support.

Our team will never put any pressure on you to release equity from your home. You have to be 100% positive that this is what you want to do before going ahead.

Our team will use our very own equity release calculator to work out how much you might be able to release from your home, to give you a clear indication of how much you might get released from your home if you wish to go ahead.

For more help and support, speak to a member of the team at the Equity Release Warehouse team.

Start your equity release journey today by calling our team on 0330 058 1579 or by visiting us online by visiting www.equityreleasewarehouse.com.