Equity Release Falmouth - Lifetime Mortgage Near Me

Equity Release in Falmouth

Equity release in Falmouth is another type of mortgage that allows anyone over the age of 55 years old the chance to release the equity that has built up from their home over the years.

If you have lived in your home for a number of years, then you should have a significant amount of equity that has built up in your home [1].

This will include the initial deposit you put down on the house when you first bought it, the monthly mortgage payments you have made (minus any interest) as well as any added value your property has benefited from.

Many people get to retirement or pension age and want to downsize. However, doing so can be incredibly stressful and tiring, especially in later life. That is where equity release in Falmouth comes in.

With equity release in Falmouth in Cornwall, you get the chance to dip into the equity that’s inside your home without having to sell up.

You can release this equity in either one large lump sum, or via a number of smaller payments down as a drawdown plan [1].

As with any type of loan, you will be charged interest on your loan. With equity release in Falmouth, your interest will be fixed, and you will not be taxed on your loan amount [1].

You do not have to repay the loan until after you pass away or move into a care home.

Once either of these two things happen, you will have to sell your home and use the proceeds from the sale of the home to repay the loan amount.

There are two different types of equity release in Falmouth, known as lifetime mortgages and home reversion plans. Both different types of plans will benefit from the no negative equity guarantee that the Equity Release Council has put in place.

This guarantee ensures that even if your home decreases in value over the years, and the proceeds from the sale of your home no longer covers the loan amount, your next of kin(s) will never be liable to pay off the rest of your loan.

Please call our 24-Hour Helpline: 0330 058 1579

What are the two different types of equity release in Falmouth?

As discussed above, there are two main types of equity release in Falmouth or across Cornwall. These are known as lifetime mortgages and home reversion plans.

Lifetime mortgages are the most popular type of equity release in Falmouth. With lifetime mortgages, you get the chance to release a set amount of money from your home, either in one large lump sum or through a number of smaller payments [2].

With lifetime mortgages, you remain the sole owner of your property. This means that no lender ever has the right to ask you to move home or sell up at any point.

You only have to repay the loan once you pass away or move into a care home, but you will be charged interest on your loan for as long as you live.

This interest will grow and turn into compound interest over the years, which will increase your overall loan amount.

The second most popular type of equity release in Falmouth is a home reversion plan. This plan involves selling a percentage of your home to the lender in exchange for your equity.

This could be as much as 90% of the value of your home, or as little as 10%. Naturally, the more of your home you sell to the lender, the more equity you will get access to.

With home reversion plans, you won’t be charged interest, but you will have to repay the loan via the sale of what’s left of the house [2].

With either type of equity release in Falmouth, you will never be asked to sell up and move home by any lender.

The Equity Release Council and Financial Conduct Authority ensures that no lender ever has the right to ask you to move home, no matter what happens.

Which type of equity release loan you are best suited to will very much depend on your personal circumstances. This will include the value of your home, how much you need to release from your home and what you plan on spending the money on.

Please call our 24-Hour Helpline: 0330 058 1579

What am I allowed to spend my equity release funds on?

One of the best things about equity release in Falmouth is that there are very few restrictions on what you can spend your money on.

For example, some people opt to spend their money on treating themselves or their family to a once in a lifetime holiday.

Others choose to spend their money on a new car or a better lifestyle during their retirement.

However, a large percentage of people who choose to opt for equity release in Falmouth do so because they want to make some home improvements around the house.

Not only should this increase the value of your home, but it should also make your home more comfortable for you as you age.

Afterall, equity release loans are designed so that you remain living in your home until you pass away.

Others might choose to spend their funds on their family, with a lot of pensioners choosing to pay off their grandchildren’s University fees with the money they receive.

Please call our 24-Hour Helpline: 0330 058 1579

Will I be charged interest on my equity release loan?

Yes, if you opt for equity release in Falmouth and decide to take out either a lifetime mortgage or a home reversion plan, then you will certainly be charged interest on your loan.

How much interest you will have to pay on your equity release loan will depend on a number of factors. This includes which lender you opt for, what the current interest rates are and your current circumstances [3].

The important thing to remember when it comes to equity release in Falmouth is that all interest rates are fixed.

The Equity Release Council and Financial Conduct Authority ensures that no lender is able to offer you a variable rate or change their interest rate half way through the loan.

As your interest rate is fixed, your lender and equity release adviser should be able to work out exactly how much you will end up owing year on year. This will be made clear in the illustration that they draw up for you [3].

Remember, as with any type of loan, your interest will compound year on year. This means that your overall loan amount will increase the longer you live.

As your equity release loan is designed to last for as long as you live, this could add up to a significant amount.

In order to keep your compound interest down to a minimum, some individuals who take out an equity release loan decide to make optional repayments.

This could be an agreement where you repay the interest on your loan each month, or you could decide to make an early repayment.

Most lenders do allow borrowers the chance to repay a percentage of their loan each month or year, although this is usually limited to 10% annually. If you go above this amount, then you might be charged an early repayment fee.

Please call our 24-Hour Helpline: 0330 058 1579

How long does an equity release loan take to process?

If you opt to take out an equity release loan then you should expect the process to take a number of weeks, if not months to process.

This process takes longer than a traditional loan takes to process as it involves property.

As you will remember from buying your house, the conveyancing process can take 6 – 12 weeks to process, similar to that of the equity release timescale.

The quicker you can instruct a solicitor to work on your behalf, the quicker your solicitor can get to work and start the conveyancing process for you.

Depending on the size and complexity of your equity release loan, you could have the funds in your bank account as quickly as 6 weeks. However, this will very much depend on how fast your solicitor is able to work.

Please call our 24-Hour Helpline: 0330 058 1579

How much does equity release in Falmouth cost?

Equity release in Falmouth will involve a number of set up costs, which you should be made aware of before taking out your equity release loan.

Some of these costs are embedded into the equity release process, including interest and the cost of an adviser.

However, there are also a number of set up costs also associated with taking out an equity release loan.

For example, in order to apply for an equity release loan in Falmouth you will need to hire someone from your lender to carry out what is called a home valuation.

This home valuation will determine exactly how much your property is worth and will therefore help your lender to determine how much equity you might be able to release from your home.

This usually costs anywhere between £100 and £200.

Likewise, you will have to engage a solicitor to work on your behalf. Depending on where you live and how expensive your solicitor is, this could cost you anything between £1,000 and £3,000 and will most likely need to be paid upfront.

Please call our 24-Hour Helpline: 0330 058 1579

Speak to Equity Release Warehouse

If you are in need of some advice when it comes to equity release in Falmouth, then look no further.

The team at Equity Release Warehouse are on hand to advise you and provide you with all of the information you will need to make an informed decision.

It is never our intention to pressurise you into taking out an equity release loan. Instead, we will simply present you with all of the necessary facts, including the downsides to equity release in Falmouth and allow you to make a decision from there.

Our team of specialist advisers will even use our very own equity release calculator to work out how much you might be able to release from your home, to give you an initial idea.

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

References

[1] https://www.equityreleasewarehouse.com/help-centre/

[2] https://www.equityreleasecouncil.com/what-is-equity-release/

[3]  https://www.equityreleasewarehouse.com/help-centre/best-equity-release-interest-rates/