Equity Release Poole - Lifetime Mortgage Near Me

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

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Equity Release in Poole and Near Poole

Equity release in Poole is a common type of loan or mortgage that allows pensioners or anyone over the age of 55 years old the opportunity to release equity from their home without having to sell up or downsize.

A large percentage of homeowners this age are sitting on a significant amount of equity, especially if they’ve lived in the same house for a number of years.

Equity release in Poole works differently to other types of loans. You don’t have to repay the loan until you pass away or move into care. The loan is only ever repaid through the sale of your home.

Everyone who takes out equity release in Poole will be charged interest, which will continue to compound every year that your loan continues.

In the case of equity release, your loan will continue until you pass away or move into care [1].

As your loan is taken out against your home, you are able to release a significant amount of cash. You are free to spend this money on whatever you want to.

Some people spend their money on themselves, their home or their family.

Whatever you choose to do with your money, make sure that you make your money work for you.

You are also able to release your equity in one large lump sum, or through a number of smaller and more frequent payments. This is known as a drawdown plan [1].

There are no mandatory repayments with equity release in Poole, although you are given the chance to make some repayments to your loan, if you choose to do so.

This will reduce the overall loan amount and will reduce the amount of compound interest on your loan [1].

Please call our 24-Hour Helpline: 0330 058 1579

What happens when I pass away?

Once you pass away, the terms and conditions of your equity release loan will kick in and your loved ones will sell your home in order to pay back the loan.

If there’s anything left over, then this will go to your next of kin as inheritance.

If the proceeds from the sale of your home does not cover the loan amount, as the interest has compounded too much or your house has decreased in value, then the no negative equity guarantee will kick in and your lender will pay the difference.

Your next of kin(s) or loved ones left responsible for your assets will have approximately 6 months to sell your home and ensure that the equity release loan is paid back in full.

If you’re considering equity release in Poole, then it’s important to discuss this with your loved ones prior to taking out the loan, so that they know what to expect when the time comes and are aware of what they might need to do.

Please call our 24-Hour Helpline: 0330 058 1579

How do I qualify for equity release in Poole?

Qualifying for equity release in Poole is straightforward, although you will need to undergo a number of checks before you qualify for equity release.

Each lender has different qualification criteria, although most lenders have the following criteria in place [2].

You must be aged at least 55 years old to qualify for a lifetime mortgage
You must be aged at least 65 years old to qualify for a home reversion plan
You must own your property
Your property must be worth at least £70,000
Your property must be made out of traditional materials
You must agree to stick to the terms and conditions of the loan
You must agree to have your home valued
You must seek the advice of a qualified equity release adviser

If you want more information on equity release in Poole and whether or not you would qualify, then speak to a member of the Equity Release Warehouse team.

Please call our 24-Hour Helpline: 0330 058 1579

How long does equity release in Poole take to process?

After applying for equity release in Poole, you should expect to wait approximately 6 – 12 weeks for your funds to drop into your account.

During this time, your equity release adviser, solicitor and lender will be working to ensure that everything is in place for your equity release mortgage to begin.

Whilst it’s easy to grow frustrated at your solicitor, rest assured that they are working hard to make sure that your loan stands up legally and that you are fully informed on everything about your loan.

Do I pay interest on my equity release mortgage?

Yes, with every equity release loan you will be charged interest. Interest rates with equity release in Poole will be fixed, meaning that the amount you pay in interest each month will stay the same throughout the duration of your loan.

This means that subsequently, you will be able to see exactly how much money you will need to repay each year that your loan continues.

Each year, your loan amount will grow as your interest compounds. It is important to understand that the proceeds from the sale of your home will have to cover the cost of your loan including the interest.

Each lender will offer different interest rates and it’s the job of your equity release specialist adviser to find you the very best deals and interest rates.

Please call our 24-Hour Helpline: 0330 058 1579

What happens if I want to move house after taking out an equity release loan?

Whilst many people wrongly believe that you’re unable to move house after you take out an equity release loan, this is simply not the case.

You are able to move house after you take out an equity release loan, as long as your equity release lender approves the new property.

Whilst equity release in Poole is designed to last for the duration of your loan, you can move house as long as the new property is similar in price to your current property and you inform your lender of your plans.

How much does equity release in Poole cost?

Equity release in Poole involves a few upfront costs. These upfront costs include things such as solicitor fees, a home valuation and the cost of an equity release adviser.

Some of these initial costs will be expected to be paid off upfront, whereas some of them will be paid off when the equity release funds have been sent into your account.

Solicitor fees usually cost around £1,000 – £3,000, depending on how complex your loan is and how long it takes to process.

Home valuations are usually paid upfront and cost approximately £100. The cost of an equity release adviser is usually approximately 1% – 3% of the total value of the loan, although this will depend on your adviser.

Please call our 24-Hour Helpline: 0330 058 1579

The advantages of equity release in Poole

There are numerous advantages to equity release in Poole. Firstly, you get access to a set amount of your equity, entirely tax-free. You’re also free to spend this money on whatever you want, including yourself or other people [3].

You also only have to repay the mortgage after you pass away or move into a care home, through the sale of your home.

This means no mandatory mortgage repayments. You can even use your equity release loan to pay off your traditional, pre-existing mortgage meaning that you’re now mortgage free going into retirement.

The no negative equity guarantee is another huge advantage to taking out an equity release loan.

This guarantee means that your loved ones will never be left responsible for paying off your loan if your house decreases in value [3].

The other great thing about equity release in Poole is that if your circumstances change, then you are able to pay back some of the loan early [3].

Doing so will reduce the overall loan amount, by reducing the amount of compound interest that builds up.

Finally, the equity release industry is monitored by the Equity Release Council and the Financial Conduct Authority, which maintain the standards and values across the industry.

If you claim benefits, then the Department for Work and Pensions will need to be informed, as there is a chance that your benefits will be cut by taking out an equity release loan.

Please call our 24-Hour Helpline: 0330 058 1579

How do I release equity from my home?

If you’re interested in equity release in Poole and don’t know where to start, then get in touch with our team at Equity Release Warehouse.

Our team is dedicated to helping homeowners over the age of 55 release equity from their home, so that they can enjoy a worry and stress-free retirement.

Our equity release calculator will even determine how much you’re able to release from your home with just a few clicks.

Start by getting in touch with our team today by calling us on 0330 058 1579 or by visiting us online at www.equityreleasewarehouse.com.