Equity Release Redbridge - Lifetime Mortgage Near Me

Equity Release Redbridge & Near Redbridge

Equity release is a popular scheme all over the UK, so you will find a huge number of equity release plans in Redbridge. Equity release in Redbridge comes with two different products:

1. Home reversion

The home reversion plan in Redbridge in London requires homeowners to be 65 years old, and to own a house that is at least £70,000 in value. They will sell their home to the equity release provider, in order to get an equity release loan that is theirs for the rest of their life.

Often, customers only sell a share of their home, rather than selling the full property. This means that when they pass away, the money raised from their share of the property sale will go to their beneficiaries.

It goes without saying that the more valuable your property is, the more likely it is that you will get a bigger loan with equity release in Redbridge.

However, even people with low value homes could end up with a large loan for various reasons; they may live in a great location, qualify for certain schemes due to their age or disability, and choose a plan that offers high loans.

2. Lifetime mortgage

To get an equity release lifetime mortgage, you must also own a home with a value of £70,000 or more, but rather than being 65 years old, you only have to be 55 years old. This means more people in Redbridge qualify for the lifetime mortgage.

With this type of equity release in Redbridge, you get either monthly payments or a lump sum of cash. Instead of selling your home, you are in debt to the equity release provider for the rest of your life, including compound interest.

People tend to get more money with a lifetime mortgage, as the equity release provider can lean on the fact that they are going to be repaid for the loan, as well as compound interest.

Please call our 24-Hour Helpline: 0330 058 1579

Should I Get a Lifetime Mortgage Or a Home Reversion With Equity Release Redbridge?

Some equity release consumers have never even considered a home reversion, as they have only heard of people getting lifetime mortgages. However, we wouldn’t want you to miss out on a home reversion if it was ideal for you, so we will explain the pros and cons of both products today.

It goes without saying that anyone under the age of 65 who is thinking about equity release in Redbridge should get a lifetime mortgage, as they would not qualify for a home reversion scheme (1). This is one of the reasons lifetime mortgages are more popular; younger homeowners only have this option.

Lifetime mortgages are also recommended for people who do not like the idea of giving their home away. If you ever decide to leave equity release in Redbridge, it is often much easier to do this when you still own your home.

Though you must follow the guidelines of the equity release lender, once you move on from equity release, your house is yours to keep or sell. With a home reversion, you would have to pay to get your share back, which would be very costly.

It is easier to get more money from a lifetime mortgage, so this option may be preferable if you need to fund something that is very costly, such as a wedding or home renovations.

With a home reversion, you sell your property for an amount much lower than the property value (from 20-60%), so you tend to get a much lower loan.

However, home reversions are ideal for people who want to keep equity release interest low.

Though you sell your home for less than it is worth, the money you receive is not only tax-free, but there is no interest charged on it. In the long run, this could mean you save more money.

The main way to determine which scheme would be best for you is to think about what your plans for the future are.

For instance, if you do not need to leave a large inheritance, it is probably worthwhile to accept the compound interest that comes with lifetime mortgages, as the amount of debt you are in when you die will not matter (and your home sale will cover this).

You should also think about what you want to spend your loan on. If it is a one-off purchase, you may prefer to get a home reversion, as you will not have to keep paying interest for the rest of your life based on one purchase.

Please call our 24-Hour Helpline: 0330 058 1579

Can You Back Out Of Equity Release in Redbridge?

Yes, you can change your mind about equity release in Redbridge at any point, but you may not be happy with the result.

If you wanted to back out of equity release in Redbridge completely, you will often have to pay an early repayment fee.

This gets very expensive with certain lenders and plans, and it tends to be more expensive if you are a newer equity release customer. For this reason, it is sometimes cheaper for people to remain equity release customers.

Fortunately, you can move house with equity release in Redbridge without having to leave the scheme. This could come with an early repayment fee, but if you have downsizing protection, it will not.

As long as you find a property that your lender is happy with, you can move without paying an additional fee.

Sometimes, if you are moving to a lower value home, you will have to pay the fee even if you have downsizing protection.

However, it is also possible to ask your provider to find an alternative home for you that is of a similar value. This could help you to avoid the early repayment fee.

Some of our clients ask us how they can avoid wanting to back out of equity release in Redbridge in the future.

Our main piece of advice is to speak to an equity release adviser about the future of your equity release plan, and make sure you prepare for all of the possible scenarios.

They will give you a personalised illustration that shows you how equity release in Redbridge could impact your financial situation.

We also recommend that you find an equity release provider that is part of the Equity Release Council (ERC). This offers you more flexibility, as you will always be allowed to move home, and to get a no negative equity guarantee.

These schemes could prevent you from needing to exit equity release in Redbridge, but they could also make it more affordable if you do decide to leave.

Also, discuss your decision with people you trust. It goes without saying that you will need to have a discussion with your partner to see if you are on the same page, but you could also ask your children and other close relatives about equity release in Redbridge.

They will be familiar with your circumstances, so they may be able to point out possible flaws in the plan that you have missed. They could also identify bonuses that you haven’t considered.

You can learn about the cost of equity release here. It may also be worth reading our guide to the alternatives to equity release.

If you are in debt, and want to arrange equity release to pay for that debt, then it might be more advisable to first seek out the help of a debt counselling professional.

Below, we list organisations offering this type of help in your local area:

1. Citizens Advice Redbridge

Address: 220 Hoe St, London E17 3AY

Phone: 0808 278 7872

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

2. Age UK

Address: 103 Cranbrook Rd, Cranbrook, Ilford IG1 4PU

Phone: 020 8220 6000

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

Other organisations that may help include StepChange Debt Charity, Society of Later Life Advisers, Age UK and Redbridge Borough Council.

Please call our 24-Hour Helpline: 0330 058 1579

Can You Delay Equity Release in Redbridge?

Yes, you can delay equity release in Redbridge. You will not become ineligible for equity release in Redbridge by delaying your application unless you are in your 80s, and there may be a time pressure for you to put your application in before certain lenders start to refuse to lend you money.

It is sometimes wise to delay equity release in Redbridge, and sometimes ill-advised. It all depends on your personal circumstances.

Delaying equity release in Redbridge is a good idea if you are not well informed on the scheme, and you need time to meet with advisers.

You should never go into equity release without seeking professional advice, as you could end up signing off on something that is inflexible or more costly than it needs to be.

Sometimes, putting off equity release in Redbridge is necessary, such as if you are too young for the scheme, or you want to downsize before you take part.

In this situation, you are preparing yourself for the scheme by getting yourself organised, and this should not be frowned upon.

On the other hand, we have witnessed customers delay equity release in Redbridge when they would have been much better off making an application as soon as possible.

For example, some people wait until they are retired to release equity, when there is no reason to.

If you already know that you are going to owe a large amount of funds to a provider for the rest of your life, delaying equity release in Redbridge by a few years will not do much for your financial situation.

Others wait around for a better equity release in Redbridge plan. Though new plans do pop up quite regularly, you can never be sure that a new plan will be suitable for you, so this is not a good idea.

The variety of plans currently on the market is enough to meet your needs, regardless of what you want to do with your equity release loan.

All advisors we work with are regulated by the Financial Conduct Authority and Financial Ombudsman Service. Advisors are able to recommend equity release products covering the entire market, and allow you to lend from reputable lenders such as  Scottish Widows, Legal & General, Aviva, Liverpool Victoria (LV), Canada Life, more2life and Hodge.

Please call our 24-Hour Helpline: 0330 058 1579

Contact Us

Please contact us on 0330 058 1579 if you are interested in being a consumer of equity release in Redbridge. We will talk you through the scheme in more detail and clear up any misconceptions you have.

References

[1] What is a home reversion plan and should I use one in retirement? https://www.unbiased.co.uk/discover/pensions-retirement/planning-for-retirement/home-reversion