Equity Release Walsall - Lifetime Mortgage Near Me

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

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Equity Release in Walsall

Equity release in Walsall works by allowing individuals aged 55 or over the chance to release equity from their home.

They can do so by releasing a set percentage of equity, whilst being able to remain living in their home for as long as they want.

They won’t ever be asked to move out, and the loan only needs to be repaid once they pass away or move into a care home [1].

Once the homeowner passes away or moves into a care home, the loan will then be repaid through the sale of the home.

The proceeds of the sale of the home will pay off the loan in full, instead of going to your loved ones as inheritance.

The proceeds from the sale of the home should pay off the loan in full.

If, for whatever reason, your house has decreased in value and no longer covers the loan amount, then the no negative equity guarantee will ensure that the lender will be liable to pay off any difference or shortfall, not your next of kin [1].

As with any type of loan, you will be charged interest on your equity release loan. However, the great thing about taking out an equity release loan is that the interest on your loan will always be fixed.

This means that it won’t fluctuate throughout the duration of your loan and you will know exactly how much interest you are being charged each year [1].

However, it is important to understand that your interest will compound.

As your loan will continue for as long as you live, or until you move into a care home, you should expect to see a significant amount of compound interest on top of your original loan amount.

With some equity release lenders, you do have the option to repay some of your loan early, whilst you’re still alive.

Most lenders will allow you to make an annual early repayment of up to 10% of your total loan amount, although any more could see you charged with any early repayment fee.

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The differences between lifetime mortgages and home reversion plans

There are two types of equity release loans, known as lifetime mortgages and home reversion plans.

Whilst lifetime mortgages are the most popular type of equity release in Walsall and throughout the rest of the UK, it’s important to understand both so that you can choose the right type of equity release loan for you and your family.

Lifetime mortgages allow you to release typically up to 60% of the value of your home.

You are free to spend this on whatever you want and only have to repay the loan once you pass away or move into a care home.

You remain the sole owner of your property and will be charged interest, which will compound over the years.

In order to apply for a lifetime mortgage, you need to be aged 55 or over.

Home reversion plans are the less popular option for homeowners in Walsall and up and down the country, as they involve selling a percentage of your home to a lender in order to receive your equity release funds. T

his could be as much as 90% of the value of your home, or as little as 10%. The more you sell, the more money you receive.

Whilst the lender will technically own a percentage of your home already, they won’t ever ask you to leave or move out and you can continue living in your home for as long as you want. In order to qualify for this type of loan, you need to be aged 65 or over.

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Top reasons for equity release in Walsall

There are a number of reasons why someone would choose equity release in Walsall. Most working individuals dream of a retirement of leisure.

However, many get to pension age and realise that their funds might not stretch them as far as they might have hoped, or that they can’t live the lifestyle they dreamt of on their pension income [2].

Others choose equity release in Walsall so that they can help loved ones, sometimes grandchildren, with the cost of things such as University fees or house deposits.

This is particularly common for those who only have a small family or one or two grandchildren, as the costs can get out of hand if you have a large family.

Helping a loved one financially is an incredibly generous way of spending your equity release funds.

Some argue that doing so is also better than leaving inheritance, as you’re alive to see your loved ones enjoy and benefit from the money you give them.

Likewise, you might opt to make some home improvements or home renovations with the funds you receive.

This would not only most likely increase the value of your property when you come to sell and the loan needs to be repaid, but it would also improve your quality of living in the meantime.

Remember, with most equity release loans you are expected to remain living in your home until you pass away or move into a care home.

So, your home needs to be suitable for you as you age.

Many people opt to install ramps, wet rooms, stair lifts or handrails with the money they receive to ensure they can remain living in their home as comfortably as possible, for as long as possible.

Please call our 24-Hour Helpline: 0330 058 1579

Advantages of equity release in Walsall

There are many different advantages to equity release. Whilst equity release might not be for everyone, at Equity Release Warehouse we believe that equity release is the answer for a lot of homeowners up and down the country.

1. Tax-free money to spend

With equity release in Walsall, you will receive a set amount of tax free money, which you are free to spend on whatever you want, as long as you inform your adviser on what your plans are.

The money you receive will either be in one large lump sum or through a number of smaller payments [3].

With equity release in Walsall, you are free to spend your money on yourself for home improvements or a better lifestyle, or you can choose to spend your money on your loved ones to help with further education or house deposits.

2. The No Negative Equity Guarantee

The no negative equity guarantee is a huge draw and advantage to equity release in Walsall.

This guarantee ensures that you will never owe more than your house is worth.

If your house decreases in value for whatever reason and no longer covers the loan amount then your lender will step in and pay the difference. Your next of kin or loved ones will never be responsible [3].

3. No monthly repayments

There are no monthly repayments with equity release in Walsall. Unlike other traditional mortgages, you are under no obligation to make any repayments until you pass away or move into a care home.

You can choose to repay some of your loan early, although you will need to watch out for early repayment charges and fees.

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4. You remain living in your home and don’t have to move

One of the biggest draws to equity release in Walsall is that you gain access to the equity in your home without ever having to move.

In fact, you’re able to remain living in your home until you pass away or move into a care home. Your lender will never ask you to move.

Moving house is often one of the most stressful things you can do.

However, many pensioners up and down the country are forced into moving home for access to extra cash.

Equity release in Walsall is the perfect solution for pensioners up and down the country who simply can’t or don’t want to move home.

Please call our 24-Hour Helpline: 0330 058 1579

Disadvantages of equity release in Walsall

Below, we outline the potential disadvantages of taking out equity release:

1. You will be charged interest

One of the biggest disadvantages to equity release in Walsall is that you will be charged interest on your loan, which will be increasing your overall debt.

Whilst your interest will be fixed, you should expect to see the overall loan amount increase a significant amount due to compound interest [3].

2. Your means-tested benefits might be affected

If you receive any means-tested benefits, then you should expect these to stop once you receive your equity release funds.

These types of benefits include things such as Universal Credit, Pension Credit, Housing Benefit, Council Tax Support and Tax Credit.

If you are currently receiving these types of benefits and want to release equity from your home then you should talk to an equity release specialist to discuss the ins and outs of your current situation.

Please call our 24-Hour Helpline: 0330 058 1579

3. You will be subject to early repayment or exit fees

Finally, if you opt for equity release in Walsall and want to repay some of your loan early then you should expect to be charged an early repayment fee.

This is usually a percentage of the total value of your loan [3].

Some lenders do offer you the chance to release up to 10% of the value of your home each year, although each lender has different terms and conditions when it comes to early repayment fees and charges.

Please call our 24-Hour Helpline: 0330 058 1579

Alternatives to equity release in Walsall

There are numerous alternatives to equity release in Walsall, which you might want to consider if you wish to release equity from your home. Some of these alternatives to equity release in Walsall are listed below for you.