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Lifetime Mortgage & General Equity Release Advice in Worcestershire
Reviewed by Tom Philips
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.
Property prices in Worcestershire are on the rise, and this applies to all types of property, including terraced houses, detached houses, semi-detached houses, and flats.
The average detached house in Worcestershire is now worth £461,415, compared to £454,309 in April 2022. The figures for detached houses are £271,711 (April) to £276,353, while the average terraced home went from £211,589 to £215,622 (1).
You may argue that property is increasing in value all over the UK, so these figures don’t reveal much. However, the property market is on the rise in Worcestershire more than in most other areas of the UK.
The average house price in the UK is £274,000 (2). On the other hand, the average property in Worcestershire is £305,251 which represents a significant difference (3).
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Depending on your financial situation and your desires for the future, equity release in Worcestershire could equally help or hurt your finances.
Here are some reasons that you should consider taking out an equity release product:
As we have outlined, the property market in Worcestershire is on the rise, which means there couldn’t be a better time to pursue equity release in Worcestershire.
Many of you will have bought a property in Worcestershire when houses were less valuable, and this stands you in great stead to gain a large equity release loan. This is because there will be plenty of equity in your property that you can tap into.
What’s more, as you continue on the equity release in Worcestershire scheme, your property will most likely continue to increase in value.
This is good news for your family, as it means there will be more funds produced from the sale, and once the equity release lender has taken their portion, the rest will go to the people in your will.
Contrary to popular belief, you do not need to be earning a high income to qualify for equity release. There are usually no affordability checks, and even if there are, you can still access an equity release in Worcestershire loan.
This is because your loan is secured against your property, rather than against your income. The equity release lender is relying on you being able to offer up your property for them to sell, rather than earning a good monthly income.
Don’t worry about being forced out of your Worcestershire property. It will only be sold when you die or go into long-term care.
The only time you should worry is if your partner has taken out a lifetime mortgage without you, as you would have to vacate the home at the end of the scheme, but we advise against individual applications in most cases.
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Similar to our point on income, it is not necessary to have a good credit history if you want to take out equity in Worcestershire. It can help you, as it may open up opportunities such as accessing lower interest rates.
However, some lenders do not even carry out credit checks. This is because you will not be repaying the loan in most cases, so there is no need to prove that you have successfully repaid borrowed money in the past.
This is great news for anyone who is struggling to qualify for traditional loans and is at a dead end, as it means you no longer have to worry about not being able to borrow money from a lender.
If you choose equity release, you could still access a life-changing amount of money regardless of your credit score.
If you are interested in buying a second property in your retirement, either as a holiday home or for another purpose, you can achieve this through equity release in Worcestershire.
You would need to speak to an equity release in Worcestershire adviser about your decision, and they would find out if you qualify for a second home lifetime mortgage.
The great thing about this type of equity release lifetime mortgage is that it is very flexible. You can use it to buy rural properties or urban properties.
What’s more, you can even purchase a home in another country, so if you have always wanted to regularly holiday in a particular country, this is the perfect opportunity to do so.
This is often only discovered after a property valuation, as you need a high-value property to be able to afford to purchase a second home. That is of course unless you have other sources of income to supplement the purchase, such as savings or a pension.
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In some situations, you are technically entitled to an equity release in Worcestershire loan, but your application process may be more complicated than it is for the average person, and you may only be able to work with certain equity release lenders to access certain equity release plans. Here are some examples of the above.
If you are over 85, you could still take out equity, but it may be more difficult for you than for a 55 year old equity release consumer. This is because there will be less time for your interest to accrue, so the situation is riskier for the equity release provider.
That being said, in some situations, it is in fact beneficial to be over 85 as an equity release in Worcestershire consumer. For example, over-85s could qualify for an enhanced lifetime mortgage which comes with benefits including larger loan amounts and lower interest rates.
Having a leasehold property does not always disqualify you from taking out equity in Worcestershire, but it does mean that it may be more difficult. If you have a long amount of time left on the lease, you may find that you are not approved for a loan by any lenders in Worcestershire.
With a short lease, more lenders are likely to accept you, but this will depend on their specific criteria. They tend to prefer clients with freehold properties as there is less organisation to do given that the homeowner is fully entitled to their property.
You can leave a good inheritance to your family after releasing equity in Worcestershire, but you would often be able to leave a better inheritance if you did not take out equity in the first place.
This is because when you take out equity from your home, you are deciding to benefit from the value of your home in the present, rather than letting your family benefit from it further down the line.
This is not necessarily a bad thing. It’s up to you to weigh up the pros and cons of each decision, but an equity release adviser would be able to help with this. It’s also a good idea to get your family’s input, given that they will be affected by your decision.
If you are releasing equity to combat the cost of living, then it might be better to first try to see if you can better manage your budget. Below, we list organisations that may be able to help in Worcestershire:
Address: 25 New St, Dudley DY1 1LT
Telephone: 01384 815771
Website: http://www.castleandcrystal.co.uk/
Address: 73 Worcester St, Wolverhampton WV2 4LE
Telephone: 01902 572340
Website: http://www.wccul.co.uk/
Address: The Hopmarket, The Foregate, Worcester WR1 1DL
Telephone: 0808 278 7891
Website: https://citizensadviceworcester.org.uk/
Address: 8 Severn St, Worcester WR1 2ND
Telephone: 01905 24894
Website: https://www.unitetheunion.org/
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You may be wondering why you should consider equity release in Worcestershire over downsizing. Both are valid options, so we encourage you to investigate both of them before making any permanent decisions.
By downsizing, you have the opportunity to pay out less in terms of bills, and this could free up a lot of money for you. You would not get into the significant debt that comes with equity release, so you would be able to leave more money to your family.
Finally, you could use downsizing as an opportunity to move into a house in Worcestershire that is better suited to your needs, such as a house that is equipped for people with a disability, or one that is easier to clean and manage in your later years.
On the other hand, equity release may be preferable for people who cannot afford their current lifestyle, and even if they downsized, they would still be struggling to make ends meet. This is because it is open to people who are cash poor as much as it is open to the wealthy.
What’s more, if you are comfortable in your current Worcestershire property and you would not want to move out of it, equity release is a great way to ensure you can stay there for the rest of your life without worrying about not being able to afford it.
To learn more about the differences between equity release in Worcestershire and remortgaging, have a look at our blog post on the topic.
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Remortgaging means you switch to a new mortgage lender, or to a new scheme with the same lender.
You can do this if you want access to better interest rates, lower monthly payments, and various other modern deals. Some people remortgage their home as they want to access modern offers that weren’t available when they took out their mortgage in Worcestershire.
By remortgaging, you can get a more flexible mortgage for your retirement, which can take some financial pressure off you. For example, you could request payment holidays when times are tough (such as when you are adjusting to your income in retirement).
On the other hand, equity release is arguably better when it comes to flexibility, as you are never expected to repay the loan in the first place. Put simply, every day is a payment holiday.
What’s more, you can release equity in Worcestershire whenever you want to. The only requirements are that you must be at least 55 years old, you must be a homeowner, and your home must be valued at £70,000 minimum.
However, you do not have to have had a traditional mortgage for a certain amount of time in order to release equity.
The same cannot be said for remortgaging, as you usually need to wait around six months after your name is registered on the title deeds to be able to switch to a new lender or plan in Worcestershire (4).
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We have a free equity release calculator on our website for any customers who are curious about how much money they could release via equity release in Worcestershire.
You simply select your age, property type and property value to find out how much money may be tied up in your home.
This calculation will be more accurate if you are confident about your property value. In any case, if you go ahead with equity release, you will have a property valuation to confirm this figure.
To get an accurate estimate of how much you could release from your Worcestershire home, get in touch with us for a personalised quote.
There are some factors that increase your chances of getting a larger loan, such as having a good credit rating, having a property that is in great condition, and living in a desirable location.
However, the main factor that influences your loan amount is your property value. As we mentioned earlier, if your home is worth less than £70,000, you will not be eligible for equity release in Worcestershire.
If you only just qualify for the scheme, you will receive a loan, but it will evidently not be as high as the loan of someone with a £400,000 property.
Whether you are on a high or low income, you have an existing mortgage or you paid it off years ago, you are 55 or 75, you could qualify for equity release in Worcestershire.
Call us today on 0330 058 1579 or ask for a callback and we will reach out to you as quickly as we can to help you understand what equity release in Worcestershire is and how it works.
All advisors we work with are regulated by the Financial Conduct Authority. This means you are covered under the Financial Services Compensation Scheme, and you lodge a complaint with the Financial Ombudsman Service (FOS) if you are unhappy about the advice you receive in relation to equity release.
All lawyers are regulated by the Solicitors Regulation Authority. If you are unhappy about the legal advice you receive in relation to equity release, you can lodge a complaint with the Legal Ombudsman.
Access help and advice today across Worcestershire in Bewdley, Broadway, Bromsgrove, Cleobury Mortimer, Droitwich, Droitwich Spa, Evesham, Hagley, Hanley Castle, Hartlebury, Kidderminster, Malvern, Pershore, Redditch, Stourport-on-Severn, Tenbury Wells, Tupsley, Upton-upon-Severn and Wolverley.
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[1] Worcestershire house prices: Average house prices rise by £4,000 https://www.worcesternews.co.uk/news/20594126.worcestershire-house-prices-average-house-prices-rise-4-000/#:~:text=The%20latest%20data%20from%20the,risen%20by%2013.2%20per%20cent.
[2] Average house price in the United Kingdom (UK) from January 2007 to July 2022 https://www.statista.com/statistics/751605/average-house-price-in-the-uk/
[3] House prices in Worcestershire https://www.rightmove.co.uk/house-prices/worcestershire.html
[4] Ask the Mortgage Experts https://www.charcol.co.uk/news-and-opinions/ask-the-mortgage-experts/can-i-remortgage-within-6-months-of-purchase-4910/#:~:text=Typically%2C%20most%20lenders%20will%20let,variable%20or%20fixed%20rate%20deals.
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