Equity Release Blackpool - Lifetime Mortgages Near Me

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

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Equity Release Blackpool & Near Blackpool

Equity release in Blackpool is a great solution to the changing housing situation in this Northern town.

Although the areas with the highest property prices tend to be on the other side of the country to Blackpool, the seaside town is experiencing property market changes like all other British towns.

If you’ve seen your property value rise and yet you have nothing to show for it, you may face the same challenges of the cost-of-living crisis as everyone else.

This is why equity release in Blackpool has proven to be a success for many Blackpool residents. It equips them with funds to tackle the high cost of living, without making them move house or get into irreversible debt.

With equity release in Blackpool, you can take money out of your home in the form of an equity loan, and you don’t have to pay any of it back directly. It is all repaid when you go into long-term care or pass away, which is when the equity release Blackpool provider will sell your home.

What is Equity Release Blackpool Like?

Equity release in Blackpool will affect you differently depending on the choices you make in terms of your plan, lender, loan amount, and various other factors.

For the average equity release in Blackpool customer, releasing money from their home looks like meeting with a specialist adviser and solicitor, applying for a lifetime mortgage, and receiving a loan that is in proportion to the value of their property.

As equity release in Blackpool is such a diverse scheme, plenty of customers will have a completely different experience to this.

For example, they may opt for a home reversion plan instead of a lifetime mortgage, or request the minimum loan amount rather than the maximum.

Each equity release in Blackpool consumer gets to personalise their journey to suit their requirements. This all starts with choosing an equity release lender and a suitable equity release product.

The products are the home reversion plan and the 8 forms of lifetime mortgage, which are:

How Much is an Equity Release Blackpool Loan?

When you meet with an equity release in Blackpool adviser, one of the first things you will discuss is how much money you are entitled to. At this stage, only estimates can be given, but getting a figure will help you to work out whether the equity release benefits will outweigh the equity release drawbacks.

You can also get a general figure right now using our free equity release calculator. For a more personalised quote, book a free no-obligation consultation with us.

Higher loans are offered to people with high-value properties, as well as people who are older (the older the customer, the lower the average compound interest when they pass away or go into care).

The minimum and maximum amount you can borrow is decided by your equity release in Blackpool provider. As the industry is regulated, this tends to be a loan to value (LTV) ratio of 20-60%.

How Much Money Do Equity Release in Blackpool Customers Owe to Their Providers?

When you get equity release in Blackpool, you commit to borrowing money that will accrue compound interest (unless your plan allows you to repay the interest regularly).

This can result in a huge amount of money being owed to the equity release in Blackpool provider. There is no general figure, as it depends how much the customer has borrowed, how their property value has changed over the years, and whether they have made any repayments.

If you don’t want to repay the interest on equity release in Blackpool, the sensible thing to do is to secure a no negative equity guarantee. You can request this during the conveyancing process.

That way, the equity release in Blackpool lender will not ask your family to cover your debt when you pass away. They will sell your property to get the loan amount back, but they will not take money to cover any compound interest that exceeds this amount.

All Equity Release Council-approved providers have no negative equity guarantees as part of their plans. This includes:

What Can I Do With My Equity Release in Blackpool Loan?

The great thing about equity release in Blackpool is that you can treat any funds you receive as your own. You don’t have to look at the funds as debt, because where a no negative equity guarantee is present, spending more of your loan will not result in your family making up the rest of the costs.

If you want to leave an inheritance to your loved ones, this may affect how you spend your equity release in Blackpool money. Even with inheritance protection, you may want to be sensible with your funds to ensure your family has enough money when you pass away.

Everyone has important things they need to budget for, so most people don’t have to think twice about how an equity loan could help them. They may decide to use it to pay off debts, top up their savings, pay the bills each month, or fund care costs.

Other ideas include starting a business, getting a holiday home, paying for a family wedding, or renovating a home or garden.

Depending on what you want to spend the funds on, you should carefully consider whether you want to receive monthly/regular payments or a lump sum of tax-free cash.

Drawdown lifetime mortgages allow homeowners to access equity release in Blackpool through an initial lump sum of cash and then regular payments and/or ad-hoc cash withdrawals.

Should I Get Fixed or Variable Interest?

Both fixed and variable equity release interest rates work well for different people.

Fixed interest is advisable for people who want to know how much interest they will owe after getting equity release in Blackpool. Customers with a no negative equity guarantee may not deem this necessary, but some people want to know this so they can budget accurately.

Another reason to opt for fixed interest is that it provides security during the cost-of-living crisis. As interest rates rise, you can trust that you won’t be charged additional interest by your provider.

That said, if interest rates suddenly drop, someone with a variable interest rate could end up in a better position. This is even better if a cap is in place, as the interest will stay within a certain bracket.

If your equity release in Blackpool provider is charging high interest on your plan, ask them whether you can switch to a lower interest rate by changing your plan. You can only do this if you took out equity with this provider at least 12 months ago.

Is Equity Release Declining?

Recent statistics have shown that equity release is declining all over the UK. There were 29% fewer equity release customers in January-March 2023 compared to the first 3 months of 2022 (3).

However, we have faith that this decline is not permanent. Given the current cost-of-living crisis and high interest rates, people are hesitant to make big financial decisions for their future. The temporary decline of the equity release market was predictable.

We are already seeing a slow return to equity release in Blackpool. David Burrowes, Chair of the Equity Release Council, has reason to believe ‘a recovery is underway’ (4).

He emphasised the increasingly flexible nature of equity release – some people still believe you get trapped when you take out equity, but the truth is that most products make it very easy for customers to switch plans and/or make penalty-free repayments.

Can I Get Equity Release in Blackpool If I Am Struggling Financially?

Often, if you are struggling financially, equity release in Blackpool would benefit you more than someone who was financially stable. This is because you would be able to access tax-free cash without getting into traditional debt and/or having to move out of your home.

What’s more, it could be the reason you get to leave a good inheritance to your family, due to your tax situation. When you take out equity, you reduce the value of your property, and this usually means you will not be liable for inheritance tax.

The only obstacle to getting equity release in Blackpool in this scenario is the initial cost of equity release. For most people, the total amount is between £1000-£3000.

If this is your only concern, please don’t let it stop you from enquiring about equity release in Blackpool. Most of the time, you can borrow the money to cover these costs, and it will be taken out of your loan.

How Can the Equity Release Council Help Me?

The Equity Release Council, and all other regulators, establish rules to standardise the equity release industry. This helps both lenders and customers to know what they are entitled to do when it comes to this scheme.

If a customer is confused about a policy, or feels that their provider isn’t sticking to their word, they can go to the Equity Release Council to complain. This applies to equity release in Blackpool customers as well as customers in other parts of the UK.

There are other regulators who can be trusted to handle complaints with professionalism. Each one handles different aspects of equity release. Some examples of well-known regulators are:

Is it Always Advisable for Eligible Homeowners to Get Equity Release in Blackpool?

No, it is not always recommended to get an equity release mortgage in Blackpool, even if you meet all the eligibility requirements. There are a wide range of pros and cons of the scheme, and what is an advantage to one person may be a disadvantage to another.

To find out whether you would be advised to engage with equity release in Blackpool, meet with a professional equity release adviser. As long as the adviser is regulated, you can trust that they will give you an honest, unbiased judgement.

If they believe you are not a suitable candidate for equity release in Blackpool, they may suggest some alternatives to equity release e.g., remortgaging, budgeting, claiming means-tested benefits, downsizing, or getting a traditional loan.

Can You Change Your Mind After Doing Equity Release in Blackpool?

It used to be very risky to apply for equity release in Blackpool, as it was a huge financial commitment that people struggled to come back from. If they changed their mind after a few years, they would have to pay extortionate early repayment fees on their loan. As a result, their finances would take a hit.

These days, the scheme is more flexible. Equity Release Council’s approved lenders must offer a suitable alternative home to any existing equity release customer who no longer wants to live in their current home.

This allows customers to make big changes to their plan without facing charges. They may switch to a different type of equity release, get a higher loan or acquire a no negative equity guarantee – all without paying a fee.

If a customer wants to leave equity release in Blackpool completely, they will have to pay an early repayment fee. The total cost of this is decided by the customer’s lender.

Before abandoning equity release in Blackpool, speak to us about why you want to leave the scheme. There may be a way for you to remain an equity release consumer while still getting your needs met.

For example, if you’re anxious about the compound interest building, you could try to switch to a voluntary repayment plan and begin to make repayments on your equity release in Blackpool loan. This can either be regular repayments (e.g., monthly repayments) or ad-hoc repayments.

Get Our Unbiased Advice

Equity Release Warehouse is a leading equity release advice firm. Customers come to us for neutral advice on an array of equity release topics, from choosing the right equity release in Blackpool product to dealing with an outstanding conventional mortgage.

Don’t hesitate to reach out to us on 0330 058 1579 for detailed information on how equity release in Blackpool might work for you.