Equity Release Brent - Lifetime Mortgages Near Me

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

Request A Callback

Get in touch today on 0330 058 1579 for a free, zero obligation consultation. We can help you locate equity release advisors in your local area.

Equity Release Brent & Near Brent

House prices in Brent have been increasing over the years, which is why equity release Brent is becoming an increasingly popular option for anyone who needs access to more money but does not want to sell or downsize their house.

What is equity release Brent?

Equity release is a type of mortgage, used exclusively by those aged 55 or over to gain access to the money that has built up in their home.

Everyone dreams of a comfortable retirement. However, with the cost of living on the rise, it’s not surprising that some retirees are finding themselves short for cash right now.

This is where equity release Brent comes in. When you release equity from your home, you’re gaining access to your own money that you have been putting into your home over the years, without having to sell. You get to remain living in the comfort of your own home.

The loan lasts for as long as you live. You also get to remain living in your home until you pass away or move into a care home.

You do not have to repay the loan until after you pass away, where your loved ones and next of kin will sell your house in order to repay the equity release mortgage and loan [2].

This means that instead of your loved ones inheriting money from the sale of your home, it will go straight to the equity release provider and lender.

Don’t forget, as with any loan you will be charged interest on your equity release loan. Because your equity release loan will last for as long as you live, this means that the interest on your loan will snowball into compound interest [2].

It is important to understand how compound interest works, as if your loan does snowball into compound interest then your loved ones might not receive any inheritance from the sale of your house, as the value of the house needs to cover the loan amount.

Many people say that the best thing about equity release in Brent is that you get to spend the money on many different things.

There aren’t any real restrictions on how you spend the money you receive, and many people choose to give their money to loved ones.

Using your inheritance to pay for higher education for your grandchildren is a really popular option, as is gifting your money to your grandchildren for a house deposit.

Others choose to spend their equity release money on themselves, for any home improvements they might need, or a once-in-a-lifetime holiday.

Others might opt on saving the money and spending it on living a healthier and better lifestyle during their retirement.

If you are a homeowner considering equity release in Brent, then you will get to choose between a lump sum plan or a drawdown plan. This is the difference between receiving your money all at once or through a number of smaller payments.

Please call our 24-Hour Helpline: 0330 058 1579

What is the equity release process?

If you are a homeowner considering equity release in Brent, then you will need to first inform an equity release advisor.

They will be able to advise you on what type of plans and lenders you should apply for, and will ensure that all lenders you apply for are a member of the Equity Release Council.

Your advisor will be able to answer any burning questions you might have and will be able to help you to apply for the loan. Once you have initially applied for equity release in Brent, your house will need to be valued.

This is so that the lender can gain a clear picture of what your house is currently worth and how much it might increase in the future.

Your advisor will help you with any paperwork, and will work with your appointed solicitor to ensure that all contracts are drawn up swiftly.

This process can take anything between 8 and 12 weeks, depending on the complexity of your application.

If you are considering equity release in Brent but are confused about the application process, then talk to our team at Equity Release Warehouse.

Please call our 24-Hour Helpline: 0330 058 1579

Who qualifies for equity release Brent?

If you are a homeowner aged over 55 years old and are considering equity release in Brent, then there are a number of important qualification criteria to understand and consider before applying.

For example, if you apply for a home reversion plan then you will need to be aged at least 65 years old, and for a lifetime mortgage you must be aged 55 or over.

You must own your own property in the UK and this property must be valued at more than £70,000. You must also have a relatively good credit rating, and your property must be a traditional, bricks and mortar house [2].

Each lender has different qualification criteria, so your advisor will need to check with your chosen lender to ensure that you qualify for equity release in Brent. Call our helpline on: 0330 058 1579.

Types of equity release in Brent

There are two main types of equity release in Brent. This includes lifetime mortgages and home reversion plans. There are also retirement mortgages and retirement interest only mortgages.

Which type of plan you will opt for will depend on your personal circumstances and finances.

1. Lifetime mortgages

Lifetime mortgages are by far the most popular type of equity release in Brent and the rest of the UK. When you opt for a lifetime mortgage, the loan is only repaid when the homeowner passes away or goes into long term care.

Your lifetime mortgage will either be on a fixed interest rate, or a variable one. You can leave your interest alone, and allow it to compound.

Alternatively, you can pay off your interest whilst you are still alive to stop it compounding which will reduce the overall loan amount.

You can borrow at least 60% of the value of your home through a lifetime mortgage, and you will always remain the sole owner of the property until you pass away and the house is sold.

All lifetime mortgages will benefit from a no negative equity guarantee. This means that even if the value of your home does not cover the loan amount when you come to sell, your next of kin won’t be responsible for paying the difference.

All Equity Release Council members will abide by this rule.

There are lots of different types of lifetime mortgages to choose from, including a lump sum plan or a drawdown plan. You can also opt for an interest only lifetime mortgage, as well as a voluntary repayment plan.

Your equity release advisor will sit down with you to discuss the pros and cons of lifetime mortgages, and will determine what type of plan would suit you best.

Please call our 24-Hour Helpline: 0330 058 1579

2. Home reversion plan

Home reversion plans work differently to lifetime mortgages. With home reversion plans, you will sell a percentage of your property back to the lender in exchange for your equity release money.

As with a lifetime mortgage, you only have to repay the loan after you pass away or move into a care home. When this happens, your house will be sold and the money from the sale of the house will go towards paying off the loan.

The money that you receive from a home reversion plan will not be taxed, and you are able to gain access to your money through one large lump sum or through a number of smaller payments.

How much interest should I expect to pay when I opt for equity release in Brent?

There is no set interest rate when it comes to equity release in Brent or throughout the rest of the UK.

How much interest you should expect to pay on your equity release scheme in Brent depends on your chosen mortgage provider, the type of plan you opt for and a number of other factors.

There are ways of keeping your interest low, including opting for a drawdown plan. This means that you would withdraw your money in small amounts, rather than one large lump sum. You should also opt for a home reversion plan if looking to keep interest rates low, as your lender will release your money to you entirely interest-free [3].

Some people avoid compound interest by paying back their interest early, either on a monthly or bi-yearly basis. This works to keep the overall loan amount down, which might mean that your loved ones are left some inheritance.

It is also important to understand that there are more costs associated with equity release in Brent, including a number of set-up costs such as the valuation, the application, an advisory and equity release solicitor.

Please call our 24-Hour Helpline: 0330 058 1579

Are there any drawbacks to equity release?

It’s true that equity release does have potential drawbacks. For instance, taking out equity release might affect your eligibility to certain state benefits.

Also, equity release will have to be repaid one day, typically either when you die or when you go into long-term care. Because equity release requires you to repay compound interest, there are typically cheaper ways of borrowing.

We’ve written a guide which outlines the potential drawbacks of equity release. We highly recommend you read this document to make a more informed decision when taking out equity release. We’ve also written a guide about the alternatives to equity release.

If you are thinking of releasing equity to better cope with the high cost of living, we would first recommend you attempt to better plan your budget. You can read our guide to budget planning here.

Also, there are a variety of organisations that exist to help if you are facing hardship.

We list some of these organisations below:

1. Citizens Advice Brent

Address: 270-272 High Rd, London NW10 2EY

Telephone: 020 8438 1249

Website: https://www.citizensadvicebrent.org.uk/

2. Age UK Hillingdon, Harrow and Brent

Address: 2, Chapel Court, 126 Church Rd, Hayes UB3 2LW

Phone: 020 8756 3040

Website: https://www.ageuk.org.uk/hillingdonharrowandbrent/

3. London Community Bank

Address: Civic Centre, CR1, High St, Uxbridge UB8 1UW

Telephone: 01895 250958

Website: http://www.londoncb.co.uk/

4. Brent Hubs

Address: Library, Coronet Parade, Ealing Rd, Wembley HA0 4BA

Website: http://brenthubs.com/

Additionally, you can reach out to organisations such as Brent Council and StepChange UK.

Please call our 24-Hour Helpline: 0330 058 1579

Talk to Equity Release Warehouse about Equity Release in Brent

If you are considering equity release in Brent, then you should get in touch with a member of the team at Equity Release Warehouse.

Our team of experts will be able to educate you on everything equity release, and will be able to advise you on what type of equity release loan you should be applying for.

Our advisor will never force you into making a decision. Instead, we simply provide you with the relevant information you need to make your own decision.

It’s normal for our advisors to ask you a number of questions about your finances and personal circumstances, so that they can make an informed decision on what advice to give you and what plans will suit you best.

We will only recommend trusted lenders, and all lenders we recommend will be a member of the Equity Release Council and will be regulated by the Financial Conduct Authority.

Some of the reputable lenders the financial advisors will research on your behalf include Scottish Widows, Legal & General, Aviva, Liverpool Victoria (LV), Canada Life, more2life, Hodge, Just Retirement, Pure Retirement, One Family and LiveMore Mortgages.

Our team will also use our own equity release calculator to ensure that you are making the best financial decision for you.

If you are considering equity release in Brent, then get in touch with our team by calling us on 0330 058 1579.