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Equity Release in Lanarkshire - Financial Advisors & Brokers

Lifetime Mortgage & General Equity Release Advice in Lanarkshire

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Equity Release in Lanarkshire

A lifetime mortgage is a very common equity release product that is available to homeowners over the age of 55 with a property worth £70,000 or more.

It is better for lifetime mortgage customers to not have an existing mortgage, but if they do, they can pay it off using their equity loan.

The draw of a lifetime mortgage is that the loan does not have to be repaid. This is promising for two reasons. Firstly, people with a bad credit rating or a low income can still take out a lifetime mortgage, as it is not necessary for them to earn a large amount of money to make repayments.

Secondly, pensioners are able to use lifetime mortgages as a way to boost their retirement income without fearing that they will enter poverty as a result of not being able to repay the money they borrowed. This is something that is unique to lifetime mortgages.

After you take out a lifetime mortgage, you are encouraged to stay in your property for the rest of your life, and you are able to spend your loan on anything you want. You will also remain the owner of your home, despite getting involved with equity release.

Please call our 24-Hour Helpline: 0330 058 1579

What is a Home Reversion?

A home reversion is another type of equity release scheme, and it is also only available to people with a property worth £70,000 or more, but they must also be over the age of 65.

If you are 65 years old but your partner is younger, you will have to wait for them to turn 65 before you release equity together, unless you want to make an individual application.

With a home reversion in Lanarkshire, you have to sell a large share of your home to an equity release provider, but you do get to stay there for the rest of your life, as you would with a lifetime mortgage. The main difference is that you are no declared the homeowner.

Another difference is that if your property rises in value, the only benefit for you would be that your share would increase in value, but you would not benefit from the rest of the property appreciating in value.

What’s more, if you sold your entire home to a provider, it would be the provider that reaped the financial benefits of the rise in value.

On the other hand, with a lifetime mortgage, you directly benefit from a rise in value. This means that your family is left with more money after your property is sold, as the equity release lender doesn’t need to take as much.

However, an advantage of a home reversion plan is that you do not have to pay any interest on the loan you receive. This is very attractive when compared to the compound interest that comes with equity release lifetime mortgages.

Please call our 24-Hour Helpline: 0330 058 1579

What is a Retirement Interest Only Mortgage?

If you know anything about equity release, you will know that the interest builds year upon year if you don’t repay it. Retirement interest-only mortgages allow you to benefit from equity release in Lanarkshire without facing this compound interest.

You are able to pay back a percentage of the interest each month, or even the full amount of interest, in order to keep the equity release debt as low as possible.

It goes without saying that you would need to be able to afford this. Some people pay for this with their State Pension, their private pension, employment income, or savings.

Which Equity Release Plan Should I Get in Lanarkshire?

We do not give general advice as to which equity release plan would be best for you, as it is dependant on many different factors. If you contact us for a free initial consultation, one of our expert advisers will be able to guide you towards the best type of equity release for you.

Having said that, there are general things to keep in mind when deciding which equity release plan to get:

1. Do you want to remain the homeowner?

If you are adamant about remaining the homeowner of your property, you will have to have a lifetime mortgage as opposed to a home reversion. Both schemes do allow you to stay in your home rent-free, but with a lifetime mortgage, you also continue to be the official property owner.

2. Do you want lump sum or monthly payments?

If you go for a home reversion plan, you have to have a lump sum. This is non-negotiable, as the funds come from selling a share of your home to an equity release provider, so you will immediately get a lump sum of tax-free cash when the sale is processed.

However, with a lifetime mortgage, both lump sums and monthly or regular payments are available.

You may decide to opt for monthly payments if you need a small top-up to your retirement income, or if you do not trust yourself to be sensible about how you spend your loan.

You could also opt for regular payments initially, and then ask to change this to a lump sum later down the line if you find that there is something big you want to spend your money on i.e. home improvements, a car, a holiday etc.

3. Are you willing to pay interest?

There is only one option for you if you are not willing to pay interest, and that is a home reversion (1). However, you could get a lifetime mortgage and make repayments on the interest with an interest-only plan.

This would not stop you from paying interest entirely, but it would allow you to do it straight away to prevent compound interest from building.

You could also get a voluntary repayment lifetime mortgage, allowing you to repay some of the loan itself, which would therefore reduce the amount of interest you owe.

Please call our 24-Hour Helpline: 0330 058 1579

How Much Does Equity Release in Lanarkshire Cost?

Equity release in Lanarkshire is affordable for most people, as it tends to be below £3000. Anyone who cannot afford this can ask their equity release lender if they can use their loan to pay it off, and this is often easy to do.

When you take out equity, you have to pay for a variety of things including the application itself, a solicitor, property valuation, advice, and administration.

Some of these things are ongoing costs, and others are not. When it comes to meeting with a solicitor, you can decide whether this is ongoing or not, but we certainly advise you to get legal advice multiple times as you navigate equity release.

You can shop around to find affordable rates, and the same applies for finding an affordable equity release adviser.

However, make sure they are still reliable, in that they offer unbiased, professional advice, and they do not oblige you to go ahead with equity release if you decide against it.

Please call our 24-Hour Helpline: 0330 058 1579

How Can I Calculate My Equity Release in Lanarkshire Loan?

Firstly, you can use our free equity release calculator which tells you how much money you could take out of your property based on your property value, your property type, and your age.

As we mentioned before, the older you are, and the more valuable your property is, the more chance you will access a higher loan. The same applies to owning a house over an apartment.

Secondly, you could request a personalised quote from Equity Release Warehouse. This takes account your finances as well as your property value and age.

We strongly encourage you to do this as you will not be forced to release equity after leaving your details, and this quote will be much more accurate than the calculator estimation.

Finally, the best way to calculate your equity release loan is to speak to an equity release adviser.

They will not be able to tell you a definite loan amount, as you need to have a property valuation before you know the exact number, and it will also depend on how much the equity release lender is willing to offer you.

If your property is under £70,000 or you are under 55, please get in touch with us to find out if there is anything you can do to change your situation, or whether you would be better off pursuing an alternative to equity release.

We also encourage you to carefully consider whether it would be worthwhile releasing equity, based on how much money you could release. Some people can only release a small amount, and it may not be worth the compound interest and general debt if they have other options available to them.

Please call our 24-Hour Helpline: 0330 058 1579

What are the Rules For Equity Release in Lanarkshire?

Some equity release lenders in Lanarkshire do not follow any rules for equity release. This is because they work independently, away from any regulatory bodies.

However, we would discourage you from releasing equity with these lenders, as you would not be protected if anything went wrong.

What’s more, regulated lenders offer a wide variety of schemes that allow your experience of equity release to be as pleasant as possible. For example, you would be more likely to benefit from inheritance protection and a no negative equity guarantee with a regulated lender.

The two bodies you need to be aware of when searching for a well-regulated equity release lender are the Financial Conduct Authority (FCA) and the Equity Release Council.

The FCA monitors equity release on a regular basis and produces annual reports that determine how well equity release is working in the UK, and which parts of the scheme need to be modified or removed.

As well as this, the FCA has a comprehensive complaints process for equity release consumers who have had a negative experience of the scheme.

The Equity Release Council also monitors the equity release scheme, and they impose rules on their members to ensure equity release customers can release equity flexibly.

For example, they state that all ERC members must allow their customers to move house, which is not something unregulated lenders have to do (2).

Please call our 24-Hour Helpline: 0330 058 1579

Finding an Equity Release in Lanarkshire Adviser

It couldn’t be easier to find equity release advice in Lanarkshire nowadays, given that there are more equity release plans being rolled out each year, and lenders are increasing their flexibility.

The fastest way to secure an appointment with an adviser is to call us on 0330 058 1579. Rest assured that your first appointment will be free of charge and obligation, so you lose nothing by getting in touch with us.

Equity release in Lanarkshire has its pros and cons, and we are well aware of the fact that not every pensioner would be in a better position if they released equity.

That’s why we discuss your financial situation in great detail before recommending an equity release plan to you.

We also discuss things like state benefits, tax, and your family, to ensure you have considered all of the potential consequences of releasing equity.

Customers who do this tend to find that their experience of equity release is much more secure than the experience of those who do not do much research, and this is because they prepare for the worst case scenario.

You could choose to get advice from a different company, and we do encourage you to look into this, however you will not get a free consultation with just anyone.

What’s more, our advisers have years of experience and they are excellent at what they do, so they will know exactly how to handle your situation, whether you are an 80-year-old with an existing mortgage, or a 50 year old who wants to take out equity in the future.

If you are interested in the finer details of equity release, our website contains everything you need to know, and we are adding to it on a regular basis.

Our help centre provides the answers to your frequently asked questions, including the basics of equity release and specific questions such as how to switch to a lower interest rate with equity release, and whether you can release equity from a leasehold property.

We also have a list of all of the equity release plans you can get in Lanarkshire, including the home reversion and lifetime mortgage we mentioned at the start of this post.

You may not be eligible for every single arrangement, so keep this in mind as you do your research, and make sure to inform your adviser of the specific plans you are interested in.

Finally, you will see that our posts are not specific to Lanarkshire, which is why it is so important that you get an appointment with an adviser.

They will be able to tailor the information to your personal situation, which will be infinitely more helpful than learning about the general gist of equity release.

Though the scheme is very similar everywhere, the availability of plans will be different in Lanarkshire, as will the property market, so getting advice that is specific to your area will help you to understand how equity release would work for you in reality.

Please call our 24-Hour Helpline: 0330 058 1579

References

[1] Home Reversion Scheme – What It Is and How You Do It https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/home-reversion-plan/

[2] Our Standards https://www.handbook.fca.org.uk/handbook/PERG/14/3.html

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