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Equity Release Northampton - Lifetime Mortgage Near Me

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

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Equity Release Northampton & Near Northampton

Overall, the average property in Northampton is less expensive than the England and Wales average.

In Northampton, the average home is currently £282,000 and the median home is £248,000, whereas the respective figures for England and Wales are £343,000 and £260,000 (1).

That being said, property prices have risen in Northampton in recent years. According to Rightmove, properties sold over the last year were 2% more valuable than the previous year, and 17% more valuable than sold homes in 2018 (2).

So, what does this have to do with equity release?

Generally, equity release is more successful in areas with a trend of rising property prices, so equity release Northampton tends to be successful for homeowners.

This is because your loan amount is largely determined by your property price, so if you live in a high value property, you will usually access a greater amount of equity release funds.

The reason it is ideal if your property has risen in value is that you will get more money out of it, as you bought the property when it was less expensive, so you will benefit from the increase in value without having to purchase a higher value property.

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Why Should I Consider Equity Release Northampton?

Firstly, as we have mentioned, property is increasing in value in Northampton, so it is a great time to release equity. When you take out equity, you are in debt to the equity release lender, but the debt is not repaid until you enter permanent care or pass away, which is when your home is sold.

If your property has risen in value, more money will be left over after the equity release lender has taken some funds from your property sale. This will directly benefit your beneficiaries.

To demonstrate the significance of this, if you took out equity in an area with a poor property market, without a no negative equity guarantee, your family could end up paying off your debts if your property decreased in value.

Secondly, equity release Northampton can solve your retirement concerns. Many people worry that they have not saved enough money for retirement, and this means they will either struggle in their later life, or they have to continue working for a long period of time.

However, if they are eligible for equity release Northampton, they may release enough money to build a comfortable retirement, meaning they do not have to continue to work, and they get to spend their money on things they have always wanted.

Unlike an unsecured bank loan, which usually requires you to purchase something specific (e.g. home improvements or a car), you can purchase anything you want with an equity release loan.

Some common choices are debt repayments (including paying off mortgages), supplementing income, home/garden improvements, buying a property, giving money to family, and going on holiday (3).

Finally, it is well known that you do not have to repay the money you borrow with equity release in Northampton.

As we have discussed, the funds are taken from your property sale, which does not occur until you pass away. This means you do not have to be able to afford repayments to take part in equity release.

This is good news for anyone who has a low income and would not qualify for a traditional loan, but would qualify for equity release, which prioritises property value and age in its eligibility criteria.

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Who Should Consider Equity Release Northampton?

It is of course important that you qualify for equity release the first place, so you must be at least 55 years old, you must own your own home, and the estimated property value of this home must be £70,000 or more.

In terms of who amongst the eligible should consider equity release, we would first suggest that you should look into this scheme if you are not confident that you have enough money to make it through retirement.

Too many pensioners are struggling to make ends meet, and this does not have to be the case if they are eligible for equity release. Even if it reduces the money your family can inherit, you need to put yourself first and ensure you are not at risk of entering poverty.

We also encourage people to take out equity if they do not have beneficiaries to leave their money to.

Though many people successfully release equity and leave some funds to their family, it is even better if you are not concerned with leaving your money, as it is true that the amount of funds you are left with after taking out equity in Northampton will be reduced.

Older homeowners who are struggling with money should also consider equity release, as they may be entitled to lower interest rates and higher loan amounts due to their age.

What’s more, as they will spend less time on the equity release scheme, they will not have to pay as much compound interest overall.

As you can see, equity release tends to be best for people who are in a tricky financial situation. However, if this does not apply to you, you will not be prohibited from releasing equity.

It may be that you are financially comfortable but you need to use equity release in Northampton to buy a second home, especially if you cannot do this through a conventional mortgage.

Or perhaps you want to ensure your retirement income is as high as possible, and you are willing to pay compound interest as a consequence of this.

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Can You Pursue Equity Release Northampton If You are Under 55?

Equity release lenders are very strict about their clients being 55 years old or more. This means it is impossible to take out equity if you are below this age.

Please get in touch with us if you are not yet 55 but you want to take out equity. We can either advise you on how to prepare for equity release at a later date, or we can point you to alternatives to equity release that might help you to increase your income.

Remember that you can take out a conventional mortgage at 55 years old, so this is always an option. However, it does depend on the length of your mortgage term, as some lenders will not accept clients who will turn 70 years old before the end of the mortgage term.

Can You Pursue Equity Release in Northampton If You Have an Existing Mortgage?

You cannot pursue equity release Northampton if you have an existing mortgage that you cannot pay off, or that you are hoping to keep. However, if you know that you can pay it off, you will be allowed to release equity.

The best thing to do is pay off your mortgage before you apply for equity release in Northampton. However, if you cannot afford to do this, find out if your equity release lender will allow you to use your loan to pay it off.

Can You Pursue Equity Release in Northampton If Your Partner Isn’t On Board?

Yes, you can pursue equity release in Northampton if your partner doesn’t want to sign up for it, provided that you are both happy for you to make an individual application.

That being said, it is very unusual for people to do this, as it generally produces many more negative consequences than positive. As we have described, when you go into long-term care or die, your home will be sold.

If your partner’s name is not on the equity release plan, the lender will not wait to sell your home. This means your partner would have to find somewhere else to live, and they would not inherit your loan. It goes without saying that this is not the ideal situation for most people.

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Can You Pursue Equity Release in Northampton If You Are in Debt?

Yes, you can definitely get equity release in Northampton if you are in debt. This is because the most important factors are your age and property value, and your financial situation is often irrelevant (unless you select a repayment lifetime mortgage).

In fact, one of the main reasons people take out equity is that they want to pay off their existing debts. This may seem bizarre as equity release is a debt in itself. However, it is a debt that does not have to be paid back by the homeowner, so you can enjoy your loan without having to save up to make repayments.

Can You Pursue Equity Release in Northampton If You are Claiming Benefits?

Yes, you will not be disqualified from equity release in Northampton if you are claiming state benefits. However, depending on the benefits you are receiving, you may find that they are stopped if you take out equity.

This only applies to means-tested benefits, so don’t worry if you are claiming something like Disability Living Allowance or the State Pension (4).

Any means-tested benefits you are claiming could be reduced or removed if you put your equity release funds into savings, but this will only occur if your savings exceed £16,000 (5).

Some examples of benefits that could be affected are: Universal Credit, Pension Credit, Income Support, Council Tax Support, Housing Benefit, Income-Based Jobseeker’s Allowance, Tax Credits, Social Fund, and Income-Related Employment and Support Allowance (6).

You will need to weigh up whether you would have more financial security if you continued to claim benefits, or if you released equity. You could also release equity in Northampton as a lump sum and spend it on something immediately, which would ensure your benefits would not be taken away.

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Can You Pursue Equity Release in Northampton If Your Income is Low?

Yes, you will not be discriminated against if you apply for equity release on a low income. You must remember that equity release is supposed to help pensioners with their retirement income, so it is very common that people apply in order to establish financial security that they do not currently have.

It is possible that the equity release lender will check your income and credit rating. However, this will determine whether you qualify for certain schemes, rather than being a way to assess whether you are eligible.

For example, if you have a great credit score, they may offer better interest rates, but if you have a bad credit score, you will not be rejected for a loan by an equity release provider.

If your income is particularly low, we advise you to avoid repayment lifetime mortgages. This is because if you set up a repayment plan that you cannot afford, you may end up having to switch plans.

Instead, aim for a plan that does not require you to pay back any money, which is the vast majority of lifetime mortgages, as well as all home reversions.

Sometimes, it is possible for you to get a repayment plan that does not oblige you to pay back any money, such as a voluntary repayment lifetime mortgage. This may be a good option if your income fluctuates, as you would be able to repay when your income is higher, and refrain from repaying when it decreases.

Please call our 24-Hour Helpline: 0330 058 1579

How to Get Equity Release in Northampton

Whether you are after a lifetime mortgage or a home reversion in Northampton, or you haven’t decided yet, we can get the ball rolling in a free initial consultation over the phone. Leave your information here or call us on 0330 059 1579 if this is something you are interested in.

There is no better time to get equity release in Northampton, as property prices continue to rise along with the cost of living. The best time to take out equity tends to be the beginning of the year, as this is when interest rates are lower, so why not do some research and prepare to release equity next year?

On the other hand, if you are not ready or eligible for this scheme, start to research other ways you can supplement your retirement income, such as budgeting, downsizing, borrowing from family, credit cards, and working. You can read about the alternatives to equity release.

You are not alone in your struggle, which is why there are so many schemes available to pensioners with a low income.

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 Northampton:

1. Citizens Advice Wellingborough

Address: 2B High St, Wellingborough NN8 4HR

Telephone: 0800 144 8848


2. Age UK Northamptonshire

Address: Wig & Pen, 18 St Giles’ St, Northampton NN1 1JA

Telephone: 01604 636736


3. Welfare Rights Advice Northampton

Address: 49-53 Hazelwood Rd, Northampton NN1 1LG

Telephone: 01604 621038


4. Age UK Northamptonshire

Address: Venton Centre, York Rd, Northampton NN1 5QJ

Telephone: 01604 611200


5. Age UK Northamptonshire, 14 Alexandra Terrace, Northampton

Address: 14 Alexandra Terrace, Kingsthorpe, Northampton NN2 7SJ

Telephone: 01604 714568


6. Debt Advice Northants

Address: 3-7 Hazelwood Rd, Northampton NN1 1LG

Telephone: 01604 235775


[1] Northampton property prices

[2] House Prices in Northampton

[3] What can you use equity release for?

[4] What disability and sickness benefits can I claim?

[5] How does equity release affect state benefits?

[6] Means-tested benefits

[7] Get help with the cost of living

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