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Lifetime Mortgage & General Equity Release Advice in Ipswich
Reviewed by Tom Philips
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.
House prices in Ipswich and across the UK have skyrocketed over the last few decades, with many people seeing the value of their house double or even triple.
Homeowners in Ipswich over the age of 55 could find themselves sitting on a large pile of equity tied up in the bricks and mortar of their house.
In the past, the accepted wisdom was that the only way to free up the cash that is sitting in your home’s value was to sell your home and downsize.
But what if you don’t want to sell your home? What if you want to stay in your current home, but reap the rewards of the wealth that has been created from your house price increase?
All advisors we refer you to are Independent Financial Advisors (IFAs). This means they can advise you on lenders across the market, such as Scottish Widows, Legal & General, Aviva, Liverpool Victoria (LV), Hodge, Canada Life, more2life, Just Retirement, Pure Retirement, One Family and LiveMore Mortgages. All lenders are backed by the Financial Services Compensation Scheme.
If this sounds like something you are interested in, then equity release Ipswich could be the thing for you.
You can book an appointment today with a specialist equity release finance advisor today in Ipswitch or across Suffolk and East Anglia in Bury St Edmunds, Aldeburgh, Lowestoft, Felixstowe, Lavenham, Woodbridge, Beccles, Sudbury, Orford, Framlingham, Dunwich, Bungay, Long Melford, Stowmarket, Walberswick, Halesworth, Saxmundham, Hadleigh, Thorpeness, Mildenhall and Kessingland.
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Equity release is a type of loan designed for homeowners who are over 55 years old. Typically, they are available for homeowners in the UK with a property that is worth over £70,000.
Equity release is a loan secured against the value of your property. The way that the equity is calculated is by subtracting the amount of mortgage you have left to pay from the total value of your property.
For example, if you are interested in equity release Ipswich and you have a £300,000 home, with a £50,000 loan left to pay off – you may be eligible for an equity release of £250,000.
You are able to access the equity in your home via several routes. We mentioned at the start that you are able to access your equity by selling your home and downsizing, and then retaining the surplus.
However, if you would like to stay in your home but still access that equity, there are two main products for equity release in Ipswich available to you.
If you are over 55 and a homeowner in Ipswich, you could apply for two of the most popular equity release products: a Lifetime Mortgage or a home reversion plan.
A lifetime mortgage is the most common form of equity release in Ipswich. When you opt for a lifetime mortgage, you gain instant access to a lump sum of your home’s equity, whilst still living in it.
An equity release lifetime mortgage is only repaid once you pass away or enter into full-time care, so there are no worries or stresses on paying back the loan during your lifetime.
The responsibility of settling the loan is passed on to your loved ones once they sell your house. The proceeds from the house sale will be used to pay off the equity release loan [1].
Many people interested in equity release in Ipswich are attracted to this feature of lifetime mortgages.
However, it is important to note that despite not having to pay off any of the loan during your lifetime, interest on the loan will compound and can accumulate to an amount that does not leave your loved ones with much inheritance after the sale of your home.
However, many lifetime mortgages come with a feature called a ‘no negative equity’ guarantee. This feature means that the final loan amount will not surpass the total sale amount of your property, giving you and your loved ones peace of mind.
People who have taken out equity release in Ipswich have countered this by opting to pay off some of the interest on the loan whilst they are still alive. This keeps the final amount of the loan lower when the time comes.
Another important feature of a lifetime mortgage is that you will remain the sole owner of your property when you take out a lifetime mortgage. You can also opt to receive your money as either a large initial lump sum, or receive it via regular smaller payments [2].
Lifetime mortgages come in different packages. You can choose from an enhanced lifetime mortgage, an interest-only plan or voluntary repayment plan.
Each one of these plans comes with their own positives and drawbacks, depending on your own personal circumstances.
If you are interested in equity release in Ipswich, contact our Equity Release Warehouse team and talk to one of our advisors or free by calling us on: 0330 058 1579
A home reversion plan allows you to access amounts of equity in your home, in exchange for selling a portion or all of your home. Despite exchanging ownership for part or all of your home, you will be able to continue living in the property for the rest of your life.
An important distinction between home reversion plans and lifetime mortgages is that they are only available to people over the age of 65.
Home reversion plans will apply a discounted rate to the value of your home when agreeing an equity amount.
So if your home is valued at £300,000 and you sold 50% of your property for equity release, you wouldn’t actually receive 50% of the house’s real value (£150,000).
This is somewhat offset by the fact that home reversion plans do not charge interest on their equity release loans – so you avoid the negative effects of compound interest.
There are no monthly repayments with a home reversion plan. As you exchanged a part or all of your home ownership for the equity, you are not indebted to the equity release provider. This makes forecasting your pension finances much easier.
If you only sold part of your home for equity release, your family will still receive your share of the house sale in their inheritance.
If you are interested in equity release in Ipswich and want to know exactly how much inheritance your family will receive, then a home reversion plan may be the best option for you.
If you are interested in equity release in Ipswich but would like to learn more about home reversion plans, then speak to a member of the Equity Release Warehouse team for more information.
Please call our 24-Hour Helpline: 0330 058 1579
If you are thinking about taking equity release in Ipswich, but are unsure on what exactly you could use the money for, there are a number of popular ways other people who have taken out equity release in Ipswich have spent their cash.
One of the most popular choices that people make with their equity release in Ipswich is to make home improvements for their retirement.
People decide that they want to be comfortable in their retirement and pre-empt any mobility assistance they may need around the house, such as handrails or a change in the home layout.
Alternatively, you could make general home improvements to the house for lifestyle decisions, such as landscaping the garden or installing a home sauna.
You could choose to gift your equity release money to your children or grandchildren as a form of early inheritance. This may be of interest to you if you would like to be there whilst your family are able to use money that would have been set aside after you’re gone.
Alternatively, you might choose to use your equity release cash as additional disposable income to supplement your pension. This is a very popular choice for people who opt for a drawdown plan.
Whatever you choose to spend your money on, it is important that you are open and honest about your plans with your equity release adviser (CeMAP and CeRER qualified). They will be able to help find the best equity release plan for you based on your plans.
If you are considering equity release in Ipswich, then talk to our team for free by calling us on: 0330 058 1579
There are many advantages to equity release in Ipswich, including the fact that you can spend the money on whatever you want.
You are also under no obligations to pay your loan whilst you’re still alive. In fact, many people choose not to repay the loan until after they pass away or move into a care home.
However, some individuals do choose to pay the interest on their loan, in an attempt to reduce the overall loan amount. This option is available to those who want it, but you are under no obligation to do this.
You also get to remain living in the home that you know and love and have created so many memories in. You will never be forced to move house or sell your home if you do not want to.
As with any loan, you will be charged interest, which will turn into compound interest. This loan amount will therefore increase in size over the years, which means that the loan amount will be more by the time you pass away or move into a care home.
The sale of your house will have to go towards paying off this loan. However, if your house reduces in value so much that you are in negative equity, your next of kin won’t be responsible for paying off the difference.
This is because all equity release lenders have signed up with the Equity Release Council, which gives you the benefit of a no-negative equity guarantee. Also, the equity release sector is regulated by the Financial Conduct Authority, and you can therefore raise any complaints with the Financial Ombudsman Service.
You can read about the disadvantages of equity release here. It is worth knowing these disadvantages, and also considering the alternatives to equity release. For instance, taking out equity release may mean you lose your entitlement to certain state benefits.
Also, equity release might not be the most suitable solution if you are simply looking for a way to combat the higher costs of living. We would advise you first attempt to learn some basic budgeting skills, and then contact one of the following organisations that can help you manage your daily costs:
Address: 19 Tower St, Ipswich IP1 3BE
Phone: 0808 278 7868
Website: https://citizensadviceipswich.org.uk/
Address: Grafton House, 15-17 Russell Rd, Ipswich IP1 2DE
Phone: 0147 343 2000
Website: https://www.ipswich.gov.uk/content/cost-living-support
Please call our 24-Hour Helpline: 0330 058 1579
The simple answer: yes. You can proceed with equity release in Ipswich if your property is a leasehold.
Every provider has different criteria for leaseholders wishing to release equity from their home, such as the length of time left on the lease. So it is important that you discuss your individual circumstances with an equity release advisor when discussing equity release in Ipswich.
Talk to a member of our team at Equity Release Warehouse for free today.
Simple answer: yes. If you are in joint ownership of a property, including tenants in common or joint tenants, you will be able to release equity from your home.
It is important to note which type of joint ownership agreement you are in. Equity release providers treat these differently depending on the joint ownership type.
Equity release in Ipswich loans for joint tenants will remain active until the last living owner passes away or moves into a care home. Whereas those who are a tenant in common, when one owner dies, the equity release lender may reassess your plan and alter the agreement at that time.
If you are a joint owner or a tenant in common and would like to know more about equity release in Ipswich, then talk to a member of our team at Equity Release Warehouse today.
Find out how much you can release using our equity release calculator.
Please call our 24-Hour Helpline: 0330 058 1579
If you are considering equity release in Ipswich, then you will need to appoint a solicitor to handle your loan application. It is incredibly important to do so, as your solicitor will be responsible for drawing up your contract and handling all the money when it comes to the loan exchange.
Solicitors can assist with a variety of matters, including equity release, any conveyancing that’s necessary, and issues such as dissolving a trust or applying for equity release under a lasting power of attorney.
Solicitors are regulated by the Solicitors Regulation Authority and the Law Society of England and Wales. You also have the right to raise any complaints with the Legal Ombudsman.
It is also important to get in touch with an equity release advisor, who will be able to guide you on what equity release loans are best for you and how you will go about your equity release application.
If you are considering equity release in Ipswich, then talk to our team for free by calling us on: 0330 058 1579
Book an appointment today with an Independent Financial Advisor in across Ipswitch in California, Castle Hill, Chantry, Gainsborough, Greenwich, Ipswich Waterfront Ipswich Village Development, Kesgrave, Maidenhall Estate, Pinewood, Purdis Farm, Ravenswood, Rushmere, Stoke Park, Stoke, Westbourne, Whitehouse and Whitton.
[1] https://www.equityreleasecouncil.com/what-is-equity-release/lifetime-mortgage/
[2] https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs65_equity_release_fcs.pdf
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