Equity Release Scarborough - Lifetime Mortgage Near Me

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

Request A Callback

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.

Equity Release in Scarborough

Equity release in Scarborough is a type of loan only available to those aged 55 or over.

In order to qualify for equity release in Scarborough you must own your own property in the UK worth at least £70,000 and this property must be your main residence [1].

You must have paid off the majority of your traditional and pre-existing mortgage in order to qualify for equity release in Scarborough.

The best thing about equity release in Scarborough is that 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, your next of kin and loved ones will be responsible for paying off the loan via the proceeds from the sale of your home.

The proceeds from the sale of the home will almost always pay off the equity release loan in full.

If it does not, then your loan and family will be protected by the no negative equity guarantee, which ensures that if you do fall into negative equity, your lenders will step in and pay the rest.

You do not have to make any mandatory repayments with equity release in Scarborough, although you might choose to do so in order to keep the amount of interest you are charged at bay.

As with any type of equity release loan or mortgage, you will be charged interest on your loan.

Overtime, this interest will grow and compound, turning into compound interest as the years go on.

As all equity release loans are designed to last for as long as you live, this can add up to a significant amount [1].

The amount of interest you are charged will be fixed. This means that your interest rate will never change, despite what happens in the market.

So, whatever interest rate you sign up to at the start of your equity release loan will stay the same, even after twenty or thirty years.

The amount of money you receive will depend on how much your home is worth, and the funds will be sent into your account completely tax free.

You are allowed to spend your equity release funds on a number of different things.

This includes things such as home improvements, a better lifestyle or helping loved ones with house deposits or the cost of further education.

If you choose to make any optional repayments to your equity release loan, then you might be able to do so.

This will keep any interest at bay and will reduce your overall loan amount. However, most lenders tend to cap the amount you are allowed to repay at 10%.

If you wish to repay above this percentage, then you might be charged any early repayment fee.

Please call our 24-Hour Helpline: 0330 058 1579

How do I repay the equity release loan?

The key thing to understand when it comes to equity release in Scarborough and throughout the rest of the UK is that you only have to repay the loan once you pass away or move into a care home.

This means that you do not have to make any mandatory repayments whilst you are still alive. You only have to make payments if you wish to do so [2].

You repay the loan once you move into a care home or pass away. Once this happens, your home will be sold.

The proceeds from the sale of the home will repay the loan amount.

Remember, not only do you have to repay the initial loan amount, but also the added interest that has been added on top over the years.

The longer your equity release loan continues, the more interest you will be charged and the more you will owe.

The proceeds from the sale of the home will almost always pay off the total loan amount, as your home should have increased in value over the years.

However, if it does not then your loan and family will be protected by the no negative equity guarantee [2].

Please call our 24-Hour Helpline: 0330 058 1579

What are the main types of equity release in Scarborough?

The two main types of equity release in Scarborough are known as lifetime mortgages and home reversion plans. Lifetime mortgages are by far the most popular type of equity release in Scarborough, as you do not have to sell a percentage of your home in order to receive your funds.

However, with any lifetime mortgage you will be charged interest on your equity release loan.

This interest will compound each month and each year that your loan continues, which will increase the overall amount that you owe significantly.

The second form of equity release in Scarborough is known as a home reversion plan.

This type of equity release plan is less popular than lifetime mortgages as it involves selling a percentage of your home to the lender in exchange for your funds.

Whilst you will never be asked to leave or sell up, when it comes to sell you won’t get as much money, as you won’t own 100% of the property.

If you are confused as to whether lifetime mortgages or home reversion plans are for you, then make sure that you speak to your equity release adviser for more advice and support on each different type of equity release in Scarborough.

Please call our 24-Hour Helpline: 0330 058 1579

What can I spend my equity release funds on?

The best thing about equity release in Scarborough is that there are very few limitations on what you can spend your funds on.

A lot of people opt to release equity from their home because they simply need additional income and funds later in life.

Whilst a lot of people pay into their pension their whole working lives, a lot of people rely on the state pension to see them through their retirement.

However, with the increase in the cost of living, an increasing number of pensioners are struggling more than ever to get by.

This is where equity release in Scarborough comes in. With equity release in Scarborough, you can opt to release your money in two different ways.

You can opt for a lump sum, meaning that you would be sent one large lump sum, which you are responsible for looking after and spending. Alternatively, you can opt for a drawdown plan.

A drawdown plan involves being sent a number of smaller payments for the rest of your life. You could ask this to be sent into your account monthly or annually [3].

Lots of people opt for a drawdown plan in their retirement because they want to improve their lifestyle, rather than spend a large sum on anything specific.

Alternatively, people might opt for a lump sum plan in order to make some home renovations and home improvements.

Not only would carrying out some home improvements potentially increase the value of your home, but it would also potentially improve your lifestyle.

Home improvements might include things such as a new landscaped garden, a new and more accessible washroom or even potentially an extension.

Depending on how much you are able to release in one large lump sum, making some improvements around the home might make sure your home is more accessible for you as you age.

Likewise, some people opt to spend their equity release funds on their loved ones.

Young people are struggling to get on the housing ladder now more than ever, with increasing property prices and interest rates.

This is why a lot of homeowners and pensioners are opting to release equity from their home so that they can gift their money to their loved ones.

This could be in the form of paying for their higher education or paying for their house deposit [3].

As you can see, there are a number of different things that you can spend your equity release funds on.

It is incredibly important that you are clear and honest with your equity release adviser on what you plan on spending your equity release funds on, so that they can put you on the right equity release plan for you and your personal circumstances.

Please call our 24-Hour Helpline: 0330 058 1579

Speak to Equity Release Warehouse

If you are considering opting for equity release in Scarborough or across Yorkshire but do not know where to start, then speak to a member of the Equity Release Warehouse team.

Our team of specialist advisers are highly trained and are able to provide you with all of the necessary information you need to make an informed decision.

Our advisers will not only talk you through the advantages of opting for equity release in Scarborough, but we will also talk you through the disadvantages and risks associated with equity release in Scarborough and the rest of the UK.

It is never our job to force you into opting for equity release in Scarborough. Opting for equity release is a huge decision and has to be right for you.

Therefore, no qualified or legitimate equity release adviser will ever force you into opting for equity release.

If you want more information into how equity release in Scarborough works, then speak to a member of the team by calling us on 0330 058 1579 or by visiting us online by searching for www.equityreleasewarehouse.com.