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Equity Release Somerset - Lifetime Mortgage Near Me

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

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Equity Release Somerset & Near Somerset

Equity release is a great option for anyone aged 55 or over, who wants to remain living in the comfort of their own home whilst gaining access to additional funds via releasing the equity within their own home.

If you live in Somerset and are considering an equity release plan, then speak to a member of our team at Equity Release Warehouse for advice and support on equity release Somerset.

If you live in Somerset, then equity release is a fantastic way of accessing additional funds to supplement their retirement income and helps to go towards a better retirement lifestyle, or helping to cover bills or food or to help cover the costs of any home improvements.

In addition, releasing equity for your home might help go towards any inheritance that you wish to leave to loved ones after you pass.

An equity release plan is a great way of accessing additional funds without having to change your life drastically by moving or borrowing other funds at a later age in life.

It is best to think of an equity release plan as a line of credit, which starts as soon as you withdraw any funds and is paid off whenever the property is sold.

Each person and situation is different, and one person’s situation might mean that equity release is a great solution, whilst others might benefit from other ways of accessing additional funds.

There are a few different ways individuals can access their funds across Somerset and the rest of the UK. For example, someone might decide to take the amount in one lump sum, whilst others option for a few smaller amounts over a period of time, and some might opt for a combination of both.

Each person and family will need to find the right combination of payment that works for them and their particular situation.

They will also need to make sure that they have a full understanding of how equity release in Somerset works before they withdraw any funds, so that they aren’t shocked or haunted by anything in the future.

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For this reason, we suggest that everyone who is considering releasing equity for their home should speak to an advisor who is trained in equity release matters who will be able to guide and support you, whilst presenting you with all available options before you make your final decision.

There are two different types of equity release in Somerset, and these are formally known as a ‘lifetime mortgage’ and a ‘home reversion plan.’

Each of these two options have their own systems and payment plans. They also have their own advantages and disadvantages, which is why it is important to understand both in full before you make a decision.

Your qualified and trained advisor should also talk you through the pros and cons of each in full, so that you understand both and are making an informed decision.

When considering choosing between a lifetime mortgage and a home reversion plan, you will need to bear in mind the following.

  • How long you wish to remain living in your home for
  • How you want to access your funds
  • Whether you need a lump sum immediately or over a period of time

In order to fully understand how both options work, read the below section for more information. If you are considering releasing equity from home, then speak to a member of our team for advice and support on equity release in Somerset.

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How Does Equity Release Somerset Work?

Below, we outline the two main types of equity release:

1. Lifetime mortgage

A lifetime mortgage is a form of equity release Somerset. This form of equity release plan is probably the most popular option with homeowners aged 55 or over.

A lifetime mortgage is a form of ‘vehicle’ which allows you to borrow a certain percentage of your entire home’s value. This loan will be taken out at a fixed interest rate, meaning that the amount you pay back will not move up and down in line with interest rates across the UK.

However, the key thing to understand with a lifetime mortgage is that borrowers do not repay the loan whilst they are still alive. However, if you opt to, you can repay interest as a small part of the capital in order to reduce the overall costs.

A lifetime mortgage often allows you to borrow money within your home over a period of time, in small amounts.

This way, the interest is charged only on the small amount you have taken out instead of charging you interest on the entire loan amount that you are withdrawing, which often results in compound interest.

A lifetime mortgage is very similar to a normal mortgage, in that the best rates depend on who you opt to go with in terms of lenders.

Before you decide to opt for a lifetime equity release mortgage, you need to bear in the mind the following things.

You must be aged 55 or over in order to access a lifetime equity release mortgage.

This is because with a lifetime mortgage, individuals often experience higher costs in the long run, so individuals need the time and money to pay it back.

  • The percentage of money you get increases as you get older
  • Every repayment you make will reduce the cost of the loan, and your advisor and provider should help you to determine how much this should be.
  • Your medical history and current health will be considered and questioned before you are given any money.
  • Most lifetime mortgages come with a fixed interest rate. If they are variable then there must be an upper limit cap.
  • With most lifetime mortgage equity release plans and schemes, the home must be your main residence in Somerset
  • However, each borrower has a right to move, but this must be subject to the new home being accepted by their mortgage provider.
  • With a lifetime mortgage, the mortgage does not have a negative equity guarantee. Therefore, once you sell your property you will not be liable if there is still a balance after you sell your property.
  • You need to understand that there are limits to the amount of money you will be able to borrow. For example, most people are only able to borrow up to 60% of the house value.

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2. Home reversion

If lifetime mortgage equity release Somerset is not for you, then you might want to consider a home reversion plan. In order to gain access to this option, individuals will need to be aged 65 or over, as this option is very different to a lifetime mortgage.

When someone opts for a home reversion plan, they will borrow a tax free lump amount in exchange for a percentage of the individual’s property, below market value.

You can continue to live in your home in Somerset until you pass on. However, when the property is sold after your death, the remaining proceeds are distributed between the lender and your next of kins and family, depending on what the agreed percentage was.

For example, if the value of your home in Somerset has increased a lot, then the amount of money that your next of kin is entitled to will also increase based on how much the property has increased in value.

You can sell your whole home (100%) for either a regular payment or lump sum, or you can see just half (50%).

Before you opt for a home reversion plan in Somerset, you need to consider the following factors.

  • You must be aged 65 or over to access a home reversion plan
  • You have the right to stay in your home if you wish to, however you must stay in line with the terms and conditions of your particular plan.
  • The amount you borrow and receive will increase with age
  • Just like with lifetime mortgages, home reversion plans do not have negative equity guarantees. Therefore, if you end up selling your property, and the amount of the sale doesn’t cover the loan, you and your estate will not have to pay the difference.
  • You are permitted to move out of your home, considering your new provider accepts the new home as continuing security

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What Could I Release From My Home?

If you are looking for an extra way of getting some money, then equity release in Somerset is a fantastic way to dip into the money within your property, whilst still being able to live in it.

If you are aged over 55, then you might be able to release a certain amount of equity for your home, depending on a number of different factors. For example, some of these factors include the following.

1. Your Age and Life Expectancy

Your age and overall health will determine how much money you can release from your home. For example, if you have a short life expectancy and also suffer from health issues, then you might not be able to release as much money as someone who is fit and healthy.

However, if your ‘co-signer’ is healthy, then this does increase your chances of being able to release more equity from your home. This is the perfect reason to stay fit and healthy, stop any smoking or drinking and live an active lifestyle.

2. If You are Happy Knowing that You will Make Less than Selling Your Home

You should only release equity from your home in Somerset if you understand the process. You need to understand that with equity release, you will receive the funds almost immediately but you will also have to pay off these funds in the future, using the value of your home.

It’s important to understand and be content with the idea that you will get less money through equity release than you would if you were to put your house on the market and sell it.

Lots of people aged 55 or over consider downsizing, and as a result either make money or lose money from the sale of their home, depending on what the current market is like in their area.

In order to gain access to the money, you will need to fully understand the process as well as the pros and cons.

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3. There are Limits

The maximum amount of money people are able to withdraw from their home’s value is usually between 50% and 60%, depending on a number of different factors including their health and financial situation.

There is also a minimum amount, but this is not set in stone and differs between lenders and situations.

However, most providers do not lend under a certain amount, as they will not make enough money from them to be worth the investment. Usually, you are unable to borrow anything below 10% of the home’s value.

4. You Will Not be Taxed

Another great thing about equity release in Somerset is that any money that you receive from your home will not be taxed.

That means that the money you are due to receive will be the same amount of money that enters your bank account. No one else will be taking your money from you.

Nevertheless, any money that you receive will be susceptible to interest which might drain some of your money over time.

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What Happens if Your Home Increases in Value?

Investing in property across Somerset and the rest of the UK has always been a great way of protecting and making money. This is because overtime, property has been a stable and steady way of making money over a prolonged period of time.

Although the market across Somerset and the rest of the UK will go up and down, most people tend to make money from their property as the value of properties has increased over years.

This is because properties will always increase in value when there is a lack of stock (homes on the market) versus a huge demand (a lot of buyers). This happened most recently during the effects of the Covid-19 pandemic, which saw house prices sore.

Even now, in a recent study carried out by the Office for National Statistics, the average house price in the UK increased by almost 10% in January 2022 [1].

A study carried out by Rightmove in 2020 stated that the overall price of a property in Somerset was just over £305,000, meaning that house prices in Somerset sit well above the national average.

In fact, another study found that house prices in Bruton in Somerset increased by nearly 40% in just one year between 2020 and 2021 (during Covid) as more and more people wanted to move to the countryside as a result of the pandemic and working from home trend.

For this reason, the value of your property in Somerset has most likely increased over the past years. For this reason, it is worth speaking with a local advisor who understands that market, so that you can get your house valued.

It’s important to understand that even if the value of your house has increased over recent years, equity release might or might not be the best option for you.

If you think the value of your home in Somerset has risen over the past few years, then speak to a member of the Equity Release Warehouse team for advice and support on what to do when it comes to equity release in Somerset.

Please call our 24-Hour Helpline: 0330 058 1579

Do I qualify for Equity Release in Somerset?

If you think you might qualify for equity release in Somerset, then it is still always best to speak to an advisor for advice and help.

If you would like to release equity, then you will need to:

  • Own your own property in the UK
  • Own a property worth more than £70,000
  • Own a lot of the equity in your home or own it outright
  • Be aged 55 years or older for some schemes, and 65 or over for other schemes

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The Criteria for Equity Release in Somerset

Below, we outline the main criteria to access equity release in the UK:

1. Your Age

If you want to qualify for equity release in Somerset, then you will need to be aged 55 or over for some schemes and 65 or over for other schemes. The older you are, the less amount of money you will be able to borrow.

This also very much depends on which lender and provider you choose to go with. In addition to this, you must also be healthy and not suffer from any long or short term health issues, or any health issues that are terminal.

However, most people who try to release equity in Somerset are married or are in some sort of joint ownership. Therefore, it is important that the youngest applicant is also aged over 55 and healthy.

Nevertheless, there are some exceptions for some people. For example, some lenders will allow individuals to release equity if one of them (aged under 55) is removed from the deeds.

There are a few other specific circumstances that also mean that some individuals are able to release equity under the age of 55, but this is generally only for special circumstances.

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2. Your Ownership

In order to qualify for equity loans and equity release in Somerset, you must own your own home and live within it in the UK. However, providers have set their own standards, allowing some individuals to release equity from houses they do not live in.

However, most people who live within the UK are eligible for equity release in Somerset. However, across Northern Ireland there are only two banks who offer this as an option.

In addition to this, if you live on the Isle of White, Isle of Man, Isles of Scilly or an island off of Scotland, then you might not be able to opt for equity release as some lenders have excluded this as an option.

If you live in Somerset or throughout the rest of the UK, then you will need to first check with an advisor to see if you and your local area qualify for equity release schemes.

3. The Value of Your Property

The total value of your property also changes whether you would or would not qualify for equity release.

Each provider for equity release in Somerset will also check to see how much your property is worth, using a range of different tools and market insight and knowledge. They will also look at other, similar houses and properties on your street to see what they recently sold for.

Lenders only tend to release equity to those with a house worth £70,000 or more, although there is generally no maximum amount. Lenders tend to avoid lending to anyone with a property worth less than this, as it is usually not worth their time and investment.

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4. Amount of Equity in the Property

Most providers and lenders for equity release in Somerset will only lend to people who have either paid off their mortgage, or who have paid off a lot of the equity in their home through their monthly mortgage payments.

Whilst you do not have to have paid off the entire mortgage to qualify for equity release, you do have to have paid off enough equity to cover the remaining mortgage debt. It is often worth checking with your financial advisor or bank to see how much equity you have built up in your home.

For example, a lot of lenders set the minimum amount they are willing to loan at £10,000, however lots others have much higher minimum amounts.

It is a good idea to have a solid understanding of your savings, built up equity and retirement pension before you request any equity from your lender.

It is also a good idea to talk to a financial advisor or equity release specialist before you make any decision, so that you can make a decision that is right for you.

5. Other Factors to Consider

There are also a few other factors that lenders should consider when releasing equity. For example, most lenders will look into your credit history, and might even ask about your current income, retirement plan and your current or future expenses.

This process is very similar to that of someone just starting out, trying to get a mortgage.

It is also important to understand and remember that if you have ever filed for bankruptcy, then you will most likely not be able to release equity from your home.

And, lastly, equity release isn’t the cheapest form of borrowing. This is one of the main drawbacks of equity release, and we generally advise you to consider the alternatives before you go through with your application.

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 Somerset:

A. Citizens Advice Mendip

Address: 5 King Street Frome Somerset BA11 1BH

Telephone: 0808 278 7842


B. Citizens Advice Sedgemoor

Address: Victoria Park Community Centre, Victoria Park Drive, Bridgwater TA6 7AS.

Telephone: 0808 278 7842


C. Somerset Community Credit Union Ltd

Address: Victoria Park Dr, Bridgwater TA6 7AS

Telephone: 01278 447100


D. Citizens Advice South Somerset

Address: Ground Floor, Petters House, Petters Way, Yeovil BA20 1SH

Telephone: 0808 278 7842


Other national organisations that can assist you include Money HelperEnergy Saving Trust, and StepChange Debt Charity.

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About Us

At Equity Release Warehouse, we are specialists in providing homeowners with the chance to release equity from their home. We provide people with help and support from start to finish, whilst offering them the chance to ask any questions, big or small.

Our consultants are able to sit down with you and explain what equity release is, why people choose to opt for it, how it works and the different types of plans and schemes to suit different people, families and situations.

If you want to release equity from your home in Somerset, then speak to a member of our helpful and knowledgeable team for advice and support on equity release in Somerset.

Please call our 24-Hour Helpline: 0330 058 1579

Why Should You Use Us at Equity Release Warehouse?

If you are looking to opt for equity release in Somerset, then talk to a member of our team at Equity Release Warehouse for advice and support. We truly are specialists in what we do, and can offer you a range of advice and support that is right for you and your specific needs.

Not only do we have extensive knowledge and insight when it comes to equity release, but we research the market not your area in search of the very best solutions, deals and plans for you.

We will also use an equity release calculator to ensure that we are finding the best deals for you.

As market specialists, we are also given access to exclusive deals and offers from lenders, to make sure that you are getting the best offers available to you.

Once you speak to a member of our team, a specialist advisor will come to your home to talk with you, to explain our process and solutions. We also offer a free over-the-phone advice service, and we operate via a ‘no sale no fee’ scheme.

All of our advisors are fully qualified specialists in equity release, who operate under a fully independent and regulated service.

It is important to understand that with Equity Release Warehouse, we simply offer advice and support and lay out all of the available options that are going to be best for you.

We do not put any pressure on you to opt for equity release, as we simply want whatever is best for you.

If you want to opt for equity release in Somerset, or just simply want more advice on what releasing equity from your home will look like for you, then speak to a member of our team at Equity Release Warehouse for free insight and support.

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.

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 Somerset in Alcombe, Axbridge, Bridgewater, Bruton, Burnham-on-sea, Castle Cary, Chard, Cheddar, Crewkerne, Dinnington, Dulverton, Frome, Glastonbury, Highbridge, Ilminster, Kingsdon, Langport, Long Sutton, Martock, Merriott, Minehead, Porlock, Portishead, Rode, Shepton Mallet, Somerton, South Petherton, Street, Taunton, Templecombe, Watchet, Wedmore, Wellington, Wells, Wincanton and Yeovil.



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