Equity Release Swindon - Lifetime Mortgage Near Me

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

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Equity Release in Swindon

Equity release in Swindon is a type of mortgage or loan only available to those aged 55 or over, or nearing retirement age.

Equity release loans are only designed to be repaid once you pass away or move into a care home. Until then, you do not have to make any mandatory payments on your loan [1].

You release the equity from your home, which includes your initial deposit, your monthly mortgage repayments each year since you have lived there and any increase in value your house has benefited from.

You are then free to spend this money on whatever you want. This could include things such as home improvements, home renovations, a better lifestyle going into retirement or helping loved ones with the cost of further education.

The loan is repaid through the sale of your home after you pass away or move into care. The final loan amount will include interest that has built up over the years.

This will grow into compound interest. Although, the proceeds from the sale of your home should pay off the total amount including any interest [1].

If the proceeds from the sale of the house do not cover the loan amount, then you will be protected by the no negative equity guarantee [1].

This guarantee protects you by ensuring that if the proceeds from the sale of your home does not cover the loan amount (for whatever reason) then your lender will be the one responsible to pay the difference. The responsibility will never fall onto your family or next of kin.

What types of equity release are there?

There are two main types of equity release in Swindon, which are known as lifetime mortgages and home reversion plans. Out of the two, lifetime mortgages are the more popular choice.

Lifetime mortgages allow you to release either a lump sum or a drawdown set of sums from your home.

You do not need to repay the mortgage until you pass away or move into care and will be charged interest on your loan.

Home reversion plans are less popular out of the two, as you have to sell a percentage of your home to the lender in exchange for your equity.

With both types of equity release in Swindon, you get to remain living in your home for as long as you want.

No lender will ever have the right to ask you to move or downsize.

As long as you stick to the terms and conditions of your loan, you are free to remain living in your home for as long as you live, or until you move into a care home for health reasons.

Are you eligible for equity release in Swindon?

In order to qualify for a lifetime mortgage, you need to be aged at least 55 years old and own a property in the UK that is worth at least £70,000.

This property must be made from traditional materials and must be your main residence. Ideally, your property will be a freehold, but it is also important to release equity from a leasehold property, too [2].

In order to qualify for a home reversion plan, you need to be aged at least 65 years old and own a property in the UK that is worth at least £70,000.

Again, this property must be made out of traditional materials and must be your main residence [2].

When it comes to any types of equity release in Swindon, you will also need to have paid off the majority of your pre-existing mortgage, and declare any debts that you might have.

In fact, if you do suffer from any debt then you might be rejected by your lender.

Can I release equity from my home if I have not yet paid off my mortgage?

To qualify for equity release in Swindon, you need to have paid off the majority of your pre-existing mortgage.

If you haven’t yet done this, then you might still be able to apply for an equity release loan as long as you agree to pay off your mortgage once you receive your equity release funds [3].

You will need to declare any pre-existing mortgages or debts with your qualified equity release lender during the initial stages of your discussions so that they can determine whether or not equity release in Swindon is right for you [3].

Is equity release in Swindon right for me?

At Equity Release Warehouse, we believe that equity release helps hundreds of thousands of people up and down the country. However, equity release in Swindon might not be for everyone.

Equity release in Swindon is right for you if you are entering your retirement years and are simply in need of some extra cash.

You need to be aged at least 55 years old and have already paid off the majority of your pre-existing mortgage.

Equity release in Swindon might not be for you if you suffer from debts, have a significant amount of your pre-existing mortgage left to pay off or have only lived in your house for a limited number of years.

Whilst you are still able to move house after taking out equity release in Swindon, equity release loans are designed to continue for as long as you live, or until you move into a care home.

You are protected by downsize protection, meaning that you might still be able to move home after taking out an equity release loan as long as the lender accepts your new property.

Common reasons why people choose equity release in Swindon

According to the Equity Release Council’s Autumn Report of 2021 [4], 35,860 people released more than £2.3 billion of property wealth between them.

There are a number of different reasons why someone would take out equity release in Swindon.

Some of these are listed below for you [5]:

You will gain access to a tax-free amount of cash, which you are free to spend on whatever you want
You do not have to move home to gain access to the equity, which would be tiresome later in life
You are able to release your equity in either one large lump sum, or through a number of smaller payments which is known as a drawdown plan
You are able to release a significant amount of equity and do not have to make any repayments until after you pass away or move into a care home
You will be protected by the no negative equity guarantee
You will be protected by downsize protection
The industry is monitored and regulated by both the Equity Release Council and the Financial Conduct Authority, so is safe and everyone you talk to will be working with your best interests at heart

Whilst there are several common reasons why someone should take out an equity release loan, it is important to understand that equity release in Swindon is not for everyone.

Your equity release specialist adviser should be forthcoming about talking about the disadvantages of equity release in Swindon, as well as the risks.

What can you expect from your equity release adviser?

If you are considering taking out equity release in Swindon, then you will need to contact an equity release adviser.

You will have an initial meeting, where you will clarify why you want to take out an equity release loan in the first place and what you would spend it on.

Once you have discussed this, your equity release adviser will then want to talk to you about your current financial standing, including whether or not you still have a traditional mortgage, whether you suffer from any debt and whether or not you have any dependencies.

It is perfectly normal for your equity release adviser to ask you these types of questions, so do not be alarmed. It is important that you answer as honestly as possible.

When it comes to equity release in Swindon, your equity release specialist adviser will then take a rough estimate and use their own equity release calculator to work out how much equity you might be able to release from your home.

It is not the job of an equity release adviser to put any pressure on you to release equity, as the decision is solely yours to make, along with the support of your family.

What are the options if I’m under 55?

Unfortunately, you must be aged at least 55 years old to qualify for a lifetime mortgage and at least 65 years old to qualify for a home reversion plan.

If you are aged younger than this and need access to additional cash, then you should speak to a financial adviser about your options.

You might want to consider taking out a personal loan, getting a part time retirement job, or downsizing as an alternative to equity release in Swindon.

Whilst downsizing might not be for everyone, it can offer individuals a better lifestyle later in life, along with a more appropriate home as they age.

How do I set up an equity release plan?

You can set up an equity release plan by contacting our team at Equity Release Warehouse.

Our team of advisers are on hand to talk you through the process from start to finish and won’t ever put any pressure on you to release equity unless you are sure of your decision and are ready.

Our team can use our very own equity release calculator to work out an estimate on how much equity you might be able to release from your home and how you will be able to spend this money.