Equity Release Stevenage - Lifetime Mortgage Near Me

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

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Equity Release in Stevenage

Equity release in Stevenage is a popular option for anyone aged 55 or over who needs access to more cash later in life.

They will be able to release equity from their home without ever having to sell up and move home.

You release the equity from your home that has been building up over the years.

This equity will include your monthly mortgage repayments minus the interest you have paid, as well as the initial deposit you put down on your home and any increase in value your house has benefited from [1].

With equity release in Stevenage, you release either one large lump sum or a number of smaller payments which is known as a drawdown plan.

You can spend the money on whatever you want and do not have to repay a penny of the loan until after you pass away or move into a care home.

You only have to repay the loan until your house is sold by your next of kin(s) and the proceeds from the sale of the house will pay off the loan, hopefully in full.

If, for whatever reason, your house has decreased in value, it may no longer cover the loan amount. In this case, then the no negative equity guarantee will kick in.

The no negative equity guarantee means that your lender will always pay off the difference, if the proceeds from the sale of your home does not cover the loan amount in full.

Remember, as with any type of loan, you will be charged interest on any equity release plans. This interest will be fixed, meaning that it will not change during the duration of your equity release plan.

However, the interest you are charged on your loan will compound during the duration of your loan.

This means that the longer you live, the more your interest will compound and the more your overall loan amount will increase [1].

In order to keep this compound interest at bay and as low as it can be, some people opt to make some optional early repayments.

This will reduce the overall loan amount. However, some people find that they are only able to repay up to 10% of their loan on a yearly basis.

This is because early repayments are usually capped by most lenders up to 10%, and if you choose to repay more than this then you will be charged an early repayment fee.

Please call our 24-Hour Helpline for Equity Relase Help: 0330 058 1579

What are lifetime mortgages and home reversion plans?

When it comes to equity release in Stevenage, there are two main types of equity release loans. This includes lifetime mortgages and home reversion plans.

Lifetime mortgages are the most popular equity release option, as they allow you to remain the sole owner of your property whilst being able to spend your equity release loan on whatever you want. You will be charged interest on lifetime mortgages.

Home reversion plans are the least popular option for homeowners looking for some extra cash.

This is because home reversion plans involve selling a percentage of your home to the lender in exchange for access to your equity release funds.

You could sell as little as 10% of your home to the lender, or as much as 90% [2].

With either type of equity release in Stevenage, you will never be asked to move, sell up or downsize.

The beauty of any equity release loan is that as long as you stick to the terms and conditions of your equity release contract, then you will get to remain living in your home for as long as you live, and are free to spend the money you receive on whatever you want to.

Please call our 24-Hour Helpline for Equity Relase Help: 0330 058 1579

What are the costs associated with equity release in Stevenage?

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

The main costs you will experience throughout the duration of your loan is the interest you are charged.

However, there are also a number of set up costs including the cost of an equity release solicitor, an equity release adviser and a home valuation.

The home valuation usually costs around £100 and is paid upfront.

This will determine how much your home is worth and therefore how much you might be able to release from your home.

The cost of an equity release solicitor sits between £1,000 and £3,000 [3].

They will be in charge of the conveyancing process and will play a crucial role in your equity release loan going through smoothly.

Your equity release adviser will also usually charge a percentage of your loan amount, which is usually charged after the loan has completed.

Please call our 24-Hour Helpline for Equity Relase Help: 0330 058 1579

What are the advantages of equity release in Stevenage?

There are numerous advantages when it comes to equity release in Stevenage.

For example, you get to spend the money on whatever you want to and are able to remain living in your home for as long as you want, without ever being asked to move home or sell up.

You also do not need to repay a penny of your loan until after you pass away or move into a care home.

This means that you can enter retirement in the home that you know and love, and are able to pay off the remainder of your pre-existing mortgage.

All equity release loans are also protected by the no negative equity guarantee.

This guarantee means that even if your house decreases in value for whatever reason, your next of kin will never be liable for paying off the remainder of your loan.

There are also a number of things that you can spend your equity release loan on, including family members, home renovations, home improvements or simply providing a better lifestyle.

If you choose to release equity from your home, then you will need to inform your equity release adviser on what you plan on spending your funds on, so that they can recommend the best type of loan for you.

Please call our 24-Hour Helpline for Equity Relase Help: 0330 058 1579

What are the disadvantages of equity release in Stevenage?

There are a number of disadvantages when it comes to equity release in Stevenage, which are important to acknowledge if you are seriously considering taking out an equity release loan in Stevenage.

For example, you will be charged interest on your lifetime mortgage. This interest will turn into compound interest, which will increase your overall loan amount significantly.

This overall loan amount will need to be repaid via the proceeds from the sale of your home.

Whilst it’s a fantastic thing that you do not have to repay your loan until after you pass away or move into a care home, you will be charged early repayment fees if you choose to make some optional early repayments in an attempt to keep your compound interest at bay.

Likewise, if you opt for equity release in Stevenage then you may no longer be eligible for any means tested benefits.

This is because the money that you will receive will be classed as savings, which means that you are no longer eligible for any means tested benefits that you currently receive or are due to receive in the future.

Please call our 24-Hour Helpline for Equity Relase Help: 0330 058 1579

What can I spend my equity release funds on?

The best thing about equity release in Stevenage is that you are free to spend your equity release funds on whatever you want.

Most people who opt for equity release in Stevenage do so because they need access to more cash later in life.

Some people opt to spend this money on an improved lifestyle, which could include things such as better weekly food shops, joining a health club, going on more holidays or buying a new car.

Alternatively, you can spend this cash on helping loved ones and grandchildren with the cost of further education or helping them by putting money towards a house deposit.

Finally, lots of people who opt for equity release in Stevenage do so because they want to make some home improvements and renovations around the house.

Not only will this make your home a more comfortable place to live, but it could also increase the value of your home in the years to come, which will go towards paying off the equity release loan.

Remember, if you opt for equity release in Stevenage, then you will be expected to remain living in your home for as long as you live, or until you move into a care home.

This means that you might want to use the money you receive from your equity release loan to make your home a more comfortable and accessible place for you to grow old in.

This could include installing some handrails, some ramps, creating a more accessible garden or installing a wet room downstairs.

Please call our 24-Hour Helpline for Equity Relase Help: 0330 058 1579

Speak to Equity Release Warehouse

If you are considering taking out an equity release loan but do not know where to start, then get in touch with our team at Equity Release Warehouse.

Our team of specialist advisers are on hand to provide you with all of the necessary and relevant information you need to make an informed decision.

Our team will talk you through the pros and cons associated with equity release in Stevenage and won’t ever put any pressure on you to release equity from your home.

It is simply our job to provide you with all of the relevant information you need to make a decision that is right for you.

Our specialists will be able to use our very own equity release calculator to work out how much equity you might be able to release from your home and will also be able to recommend the best type of loan for you and your personal circumstances.

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