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Equity Release in Lincolnshire - Lifetime Mortgage Near Me

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

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Equity Release in Lincolnshire & Near Lincolnshire

Anyone is welcome to get involved with equity release in Lincolnshire if an equity release lender approves you for a loan, so do not be discouraged if you believe you are not the typical equity release consumer.

Once you have passed the eligibility checks for your chosen lender and plan in Lincolnshire, all that matters is you have a desire to unlock the value of your property; your reason is not important.

Some people pursue equity release in Lincolnshire as a means of securing financial stability in retirement. Maybe they are nearing the end of their working life and they are realising their pension is not going to cover their living costs, so they need a loan to help them out.

Another reason could be that they want some variety in their post-work life, so they want to take out an equity loan to help them finance a second property that they can stay in for half of the year.

This could be another Lincolnshire property or a home elsewhere in the UK. Some equity release consumers even choose to purchase a home abroad.

There are some people who would like to help out their loved ones but cannot afford to, and an equity loan makes this possible for them. Many of our customers take out equity to help their children or grandchildren with securing a house, given that it is now extremely costly to buy a house in Lincolnshire.

Please call our 24-Hour Helpline: 0330 058 1579

Who Should Avoid Equity Release in Lincolnshire?

It goes without saying that anyone who is not eligible for equity release in Lincolnshire should not make an application, as this will be a waste of time and money, and the rejection will be disappointing. If you are unsure about your entitlement to an equity release loan, get in touch with us and an adviser will help you out.

The general rule is that you must own a home worth £70,000 or more in Lincolnshire, and you must be at least 55 years old (1). Some lenders will have additional criteria, so make sure to keep an eye on this before you make an application.

We list a number of drawbacks of equity release here. You would be wise to read this article. Doing so will help you avoid the pitfalls of equity release. You might even conclude equity release isn’t the most suitable path for you. If so, consider the alternatives to equity release.

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 Lincolnshire:

1. Citizens Advice Mid Lincolnshire: Boston Office

Address: Municipal Buildings, West St, Boston PE21 8QR

Telephone: 0808 278 7942

Website: http://www.camidlincs.org.uk/

2. Citizens Advice Lincoln & District

Address: Guildhall, Marshall’s Yard, Gainsborough, Lincolnshire, DN21 2NA

Telephone: 0808 278 7940

Website: http://www.citizensadvicelincoln.org.uk/

3. Citizens Advice South Lincolnshire

Address: Council Offices, Priory Rd, Spalding PE11 2XE

Telephone: 0808 278 7996

Website: http://www.citizensadvicesouthlincs.org.uk/

4. Age UK Lincoln & South Lincolnshire Charity Shop #3

Address: 36 Strait Bargate, Boston PE21 6LJ

Telephone: 01205 367645

Website: http://www.ageuk.org.uk/lincolnsouthlincolnshire

5. Age UK Lindsey

Address: For deliveries only, The Old School House, Manor House St, Horncastle LN9 5HF

Telephone: 01507 524242

Website: http://www.ageuk.org.uk/lindsey

6. Age UK Lincoln & South Lincolnshire

Address: 36 Park St, Lincoln LN1 1UQ

Telephone: 0345 556 4144

Website: https://www.ageuk.org.uk/lincolnsouthlincolnshire/

For a more exhaustive list of resources of this nature, please visit the list maintained by Lincolnshire Council.    

Are the Rumours About Equity Release in Lincolnshire True?

Some rumours about equity release in Lincolnshire are true, and we like to be open and honest about this. However, others are myths that paint equity release in a bad light, and we want to dispel these myths (2).

Rumour 1: Equity release is for people with lots of money

This rumour is simply not true. People with lots of money don’t tend to need to release equity, so this scheme is generally designed for people with less money.

It is true that you need to have a property that is sufficiently valuable, usually £70,000, but there are plenty of people living in valuable properties who don’t have much cash to spend, and these people would benefit the most from equity release in Lincolnshire.

Rumour 2: You must live in Lincoln or Boston to release equity

You do not have to live in the biggest towns in Lincolnshire to take out equity. As long as your property is eligible according to an equity release lender, it doesn’t matter whether you live in the smallest village or the largest town.

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Rumour 3: When you release equity, you no longer own your own home

This rumour does have a grain of truth in it. When you have a home reversion in Lincolnshire, you are informed that you will no longer own your home after this point, as you have to sell it to an equity release lender.

However, home reversions are very rare, and the vast majority of equity release consumers choose to have a lifetime mortgage in Lincolnshire instead. With a lifetime mortgage, you will remain the owner of your home.

Please call our 24-Hour Helpline: 0330 058 1579

Is Equity Release Riskier Than Other Options For Boosting My Income?

Equity release in Lincolnshire can be riskier than other options as it means you get into debt. However, the same can be said for traditional loans, but the latter have due dates for repayment, whereas there is no pressure to pay back the money when it comes to equity release.

Certain options are riskier than others depending on your situation. For example, downsizing may be perfect for some Lincolnshire homeowners, as it means they don’t end up getting into debt yet they have access to more money as they are paying less for their new home.

However, for others, downsizing may be incredibly stressful and they may not be able to handle it, particularly if they are elderly or have health issues. They may also not want to risk living away from family, which is sometimes necessary if they cannot find a suitable property nearby.

Please call our 24-Hour Helpline: 0330 058 1579

What are the Different Plans Available For Equity Release in Lincolnshire?

If you want to take out equity in Lincolnshire, you could either have a lifetime mortgage or a home reversion. There are a wide variety of lifetime mortgages, and each one has its unique benefits and drawbacks.

Pros and Cons Of the Lump Sum Arrangement

The lump sum arrangement is one of the most popular in Lincolnshire, which means it has low-interest rates. It is also excellent for homeowners who would like to access a large sum of money very quickly, as you receive the cash all at once.

On the other hand, lump sum arrangements are not advised for people who need a top-up to their retirement income on a regular basis, as monthly instalments are not a feature of this plan.

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Pros and Cons Of the Drawdown Arrangement

Drawdown plans are great for anyone who wants to experience a lump sum plan but also wants an income top-up, as they combine the two. You first receive a lump sum of tax-free cash, and then you have a cash reserve that you can take money from whenever you need it, including on a monthly basis.

However, the interest rates are variable with a drawdown scheme, so some Lincolnshire clients worry about the interest rising rapidly, which can happen. You cannot predict the variations in interest, as the interest rate of your initial lump sum could be very different from the rate when you are withdrawing cash later down the line.

Pros and Cons Of the Buy to Let Arrangement

It goes without saying that the buy to let plan works well for anyone who is interested in renting out a property, as it provides homeowners with a loan that helps them to purchase a new property. Once the equity release consumer has started to rent out this property, they will get a consistent income from it.

Yet, it is also evident that this arrangement is not ideal for anyone who does not want to purchase a second property to rent out. It is also not always advised for people with low value properties, as the equity loan may not stretch far enough to afford a second home.

Please call our 24-Hour Helpline: 0330 058 1579

Pros and Cons Of the Second Home Arrangement

Anyone who has been wanting to purchase a second home and cannot afford to do it would benefit from the second home arrangement. It can be great for people who are interested in buying abroad, as having the support of the equity release scheme in Lincolnshire can make this process possible.

However, there are certain limits to this scheme. For example, you have to prove that you are using the second home for a certain amount of time, so you must be committed. You should only select this scheme if you are willing to divide your time between the two homes.

Pros and Cons Of the Voluntary Repayment Arrangement

With a voluntary repayment plan, the bonus is that you can reduce the amount of money you owe at the end of the scheme by paying off the loan in increments of your choosing. This may reduce stress, particularly if you are wanting to leave a good amount of inheritance behind.

However, this plan isn’t as flexible as it first seems, as you may not be allowed to repay the loan in full, and you may have to wait a certain length of time before beginning to repay. This can be frustrating for homeowners who can afford to pay off large amounts of their loan and are not permitted to do so.

Please call our 24-Hour Helpline: 0330 058 1579

Pros and Cons Of the Income Arrangement

Unlike the lump sum plan, the income arrangement is great for anyone wanting a fixed amount paid into their bank, as this is exactly how the plan works. It is usually best for people who already have a decent income, often via their pension, but would like a bonus to get them through the month.

As you would imagine, we do not recommend income arrangements to Lincolnshire homeowners who cannot rely on a monthly income from a pension or elsewhere. This is because the monthly amount may not be enough to keep them going, so they may find themselves in a vulnerable financial situation.

Pros and Cons Of the Interest Only Arrangement

With an interest-only arrangement, equity release consumers may feel more relaxed as they can repay as much interest as they want, which means they will be in significantly less debt. As with a voluntary repayment scheme, it is great for anyone who wants to leave an inheritance.

The downside of an interest-only scheme is that you have to be in a position to afford monthly repayments, otherwise you cannot commit to an interest-only plan.

Please call our 24-Hour Helpline: 0330 058 1579

Pros and Cons Of the Enhanced Arrangement

The enhanced plan (also known as the ill-health plan) is recommended for people in Lincolnshire who are in poor health, as if you can prove this, you could enjoy many benefits such as higher loans and lower interest rates.

You may also be able to put your loan towards something that makes it easier to live with your disability, such as home improvements or advanced equipment.

On the other hand, this scheme is restricted to people with a disability, so it is not easy to access. You also sometimes have to attend evaluations to prove that you have a disability, which can be embarrassing and uncomfortable for some people. However, certain lenders request doctor’s notes and nothing more.

Please call our 24-Hour Helpline: 0330 058 1579

Find Out More About Equity Release in Lincolnshire

We hope you now understand which plans are available to you in Lincolnshire, as it is very important that you know what your options are before you make an application to an equity release lender. Keep in mind that a retirement interest-only mortgage is another option, and it could reduce the amount you owe overall.

If you have any concerns about any of these plans, please reach out to us and we will offer more information. We are proud to offer neutral advice about equity release, so although we can tell you of the many benefits of releasing equity in Lincolnshire, we will also be honest about any pitfalls.

To find out for yourself how much money you could release from your Lincolnshire property, check out our free equity release calculator.

We also offer a personalised quote for homeowners looking for a more accurate prediction. You do have to tell us your personal details to receive a quote, but we will not chase you if you decide against equity release.

Finally, if you contact us, you could benefit from a free consultation with one of our expert advisers. Not every company offers free advice, so we encourage you to make the most of this.

In this consultation, we will discuss what equity release in Lincolnshire is, how it works, the advantages and disadvantages, and the plans that are available.

References

[1] Equity Release: what it is & how it works https://www.agespace.org/finance/equity-release#:~:text=help%20from%20Laterlivingnow.-,Who%20is%20eligible%20for%20Equity%20Release%3F,go%20ahead%20with%20the%20application.

[2] Six equity release myths busted https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/equity-release-myths/

 

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