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Equity Release in Tyne And Wear - Lifetime Mortgage Near Me

Lifetime Mortgage & General Equity Release Advice in Tyne And Wear
Reviewed by Tom Philips

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Equity Release in Tyne And Wear & Near Tyne And Wear

At Equity Release Warehouse, we specialise in equity release in Tyne and Wear and the rest of the UK.

Most people across Tyne and Wear and the rest of the UK have probably seen equity release adverts on TV. If you’re aged under 50, then you probably press mute or pay little to no attention to them.

However, for those aged over 55, releasing equity from your home might be the best solution right now when it comes to battling inflation and the cost of living.

Equity release in Tyne and Wear is a type of mortgage or loan. However, unlike most mortgages or loans, with equity release you do not have to repay anything until after you pass away or move into a care home.

Instead of borrowing money that is not yours, with equity release you are releasing the equity in your home that you’ve been adding to since you first bought the property all those years ago [1].

A lot of people across Tyne and Wear don’t actually realise how much equity they have in their home.

Your equity includes the initial deposit you first put down when you bought the house, your monthly mortgage repayments minus the interest you’re paying on the loan as well as the value of your home.

By releasing equity from your home in Tyne and Wear, you are able to remain living in your home whilst being free to spend your money however you want to.

Some people choose to spend their equity release money on improving their day-to-day lives, whereas others might choose to spend their equity release funds on treating themselves to a nice holiday or some home improvements.

Other people across Tyne and Wear use their equity release money on their loved ones, and gift their money to help their loved ones buy their first house or pay for their university fees.

All the money that you receive will be tax-free, and you won’t have to repay any of this money until after you pass away or move into a care home.

Once you do so, your next of kin will have to sell your property. Once they receive the proceeds from the sale of the house, they will have to use this money to pay off the equity release loan. Subsequently, they get less inheritance.

When it comes to equity release in Tyne and Wear, there are two main types of equity release loans. This includes lifetime mortgages and home reversion plans. Whilst each plan has its benefits, each has its disadvantages which are explained further below [1].

If you want to enjoy your retirement in comfort, then equity release in Tyne and Wear might be for you.

Please call our 24-Hour Helpline: 0330 058 1579

Will I qualify for equity release in Tyne and Wear?

If you think that equity release in Tyne and Wear might be for you, then it is important to understand the qualification criteria.

In order to qualify for equity release in Tyne and Wear, then you need to be aged at least 55 or over and own your own home in the UK. The house must be your main residence and must also be worth more than £70,000.

Your age and health will also be taken into account when considering you for an equity release loan.

You need to have paid off a significant amount of your mortgage already, and if you do have some of your mortgage left to pay off then you must be willing to use your equity release funds on paying your mortgage off.

In order to establish how much your property in Tyne and Wear is worth and qualify for equity release in Tyne and Wear, someone from the lender will have to visit your property and assess how much they think it is worth.

If you think you would qualify for equity release in Tyne and Wear, then speak to the team at Equity Release Warehouse.

What Can Equity Release in Tyne and Wear Be Used For?

There aren’t really any restrictions on how you can spend your money from your equity release in Tyne and Wear. All the money that you receive will be tax free, which means you will be able to get the most out of your loan.

If you still have an existing mortgage, then you will have to use the money you receive to pay off this mortgage before spending the money on anything else. Once you’ve done this, you can spend your money however you want to.

For example, you could choose to use your equity release money on a well-deserved holiday, on some much-needed home improvements or a nice new car. Other people use their money to help loved ones with the cost of living, university fees or a house deposit.

You can also use equity release money to pay off any loans or debts that you might have, or any health or medical bills.

It is important to be open and honest with your equity release adviser about what you plan on spending the money on. This is because they might suggest a particular type of loan to make sure that you can use that money in the way you want to.

Whilst there aren’t any official restrictions in Tyne and Wear on how you can spend your equity release money, you might be restricted in certain areas. These restrictions are put into place to ensure that you and your money are both protected.

For example, if you want to use your equity release money on personal investments then you will need to seek independent legal advice before applying for equity release.

Likewise, if you want to use your equity release money on helping other people with the cost of living, university fees or house deposits then you will also need to seek advice from a financial adviser to make sure that you are making an investment you can afford.

Finally, if you plan on spending your equity release money on your current or future healthcare, then at Equity Release Warehouse we advise you to seek advice from a specialist care adviser who can make sure that your equity release money will be going towards the best health and care plans for you.

Please call our 24-Hour Helpline: 0330 058 1579

How does your health affect your equity release application?

It is important to understand that your health will have a huge impact on your equity release application.

This is because if you do suffer from certain health concerns, especially if they are life-threatening, then you might need to opt for an enhanced lifetime mortgage over a normal lifetime equity release plan.

Your lender will judge how much money they think that they can lend to you based on how long they think you will live for. This will give them a good indication of how long they will have to wait until they get their money back.

Your application might be influenced, for better or for worse by some of the following health conditions.

  • Cancer
  • Diabetes
  • Heart conditions
  • Obesity
  • Lung issues from smoking
  • Suffering from dementia and, Alzheimer’s Parkinson’s
  • Mental health issues such as severe depression

Suffering from any of the above health conditions will without a doubt affect your equity release application. If you do suffer from any of these conditions, then it is important to make it clear to your equity release adviser.

This is so that they can suggest the right types of equity release schemes for you.

If you would like more information on how your health will impact your equity release application in Tyne and Wear, then speak to a member of the team at Equity Release Warehouse for more information and advice.

Please call our 24-Hour Helpline: 0330 058 1579

Lifetime mortgages Versus home reversion plans

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

1. Lifetime mortgages

Lifetime mortgages are without a doubt the most popular type of equity release in Tyne and Wear and throughout the rest of the UK.

Lifetime mortgages have been around for a number of years, and over 55’s seem to choose them for their flexibility and the fact that you do not have to repay a penny whilst you live.

You only have to repay your lifetime mortgage after you pass away or move into long term care.

Once you do so, your next of kin and loved ones will have to sell your house and use the funds from that sale to pay off the equity release loans.

We know what you’re thinking, this means that your loved ones won’t be able to enjoy the majority of their inheritance, as they will have to use it to pay off the equity release loan.

There is a way to combat this. If you want to leave your loved ones more inheritance, then you are allowed to pay back some of the interest on your loan whilst you live. Whilst this is only voluntary, by doing so you will be reducing the amount of compound interest that builds up.

This will significantly increase the amount of inheritance your loved ones get by the time they’ve paid off the equity release loan.

With lifetime mortgages in Tyne and Wear, you benefit from a fixed interest rate, which means you know exactly how much you will have to repay. You will also be able to remain living in your home with a lifetime mortgage, as long as you stick to the terms and conditions of your contract.

You are usually only able to borrow up to 60% of your property’s value with a lifetime mortgage, which could be a significant amount of money depending on how much your property is worth.

You will also benefit from a no negative equity guarantee when it comes to lifetime mortgages across Tyne and Wear and the rest of the UK.

Lots of people fear that when you come to sell your house, the funds your loved ones get won’t cover the cost of your equity release loan. This could happen if your house decreases in value. Whilst this is very rare, it could happen.

However, a no negative equity guarantee ensures that even if this does happen, your loved ones and next of kin won’t be liable to repay the difference. This responsibility falls to your bank.

In order to qualify for a lifetime mortgage in Tyne and Wear, you have to be aged at least 55 years old, own a property worth at least £70,000 and use that property as your main residence.

You will also need to have already paid off the majority of your traditional mortgage in order to qualify.

Please call our 24-Hour Helpline: 0330 058 1579

2. Home reversion plans

Home reversion plans in Tyne and Wear are a little different to lifetime mortgages and are nowhere near as popular.

This is mainly because with home reversion plans you have to sell a percentage of your property to the lender before you are allowed access to your money. This could be as little as 10% of your property, or as much as 90% of your property [2].

However much you choose to sell to the lender, you will be selling it for less than market value. Unfortunately, this means that you won’t get anywhere near as much as if you sold it on the normal housing market.

When you come to sell your house with a home reversion plan, the money from the percentage of your property that you originally sold to the lender will go to them. This means your next of kin won’t receive their full inheritance.

You have to be aged slightly older if you want to qualify for an equity release home reversion plan. Most lenders ensure that you are aged at least 65 or over in order to apply for a home reversion plan [2].

As with a lifetime mortgage, you are able to opt for a lump sum plan or a drawdown plan. This means that you can either receive your money in one large lump sum or through a number of smaller more frequent payments.

You also get to remain living in your home until you pass away or move into a care home. You won’t ever be asked to move house, as long as you stick to the terms and conditions of your loan.

As with a lifetime mortgage, your loan conditions will include a no negative equity guarantee. This means that your loved ones won’t ever have to dip into their own savings in order to pay off the loan if the sale of the house does not cover the cost of the loan [2].

At Equity Release Warehouse, we think it’s important to understand the key differences between lifetime mortgages and equity release plans, so that you can choose the right scheme for you.

If you are confused about the differences, then speak to a member of the team at Equity Release Warehouse.

Please call our 24-Hour Helpline: 0330 058 1579

Equity release in Tyne and Wear – the disadvantages

At Equity Release Warehouse, we truly believe that equity release is the solution for lots of people up and down the country. However, it is important to highlight that there are some disadvantages to equity release in Tyne and Wear and throughout the rest of the UK.

Our equity release advisers will never put pressure on you to make a decision, and will always provide you with the pros and cons when it comes to equity release, so that you have a broad and accurate understanding of equity release.

One of the biggest cons when it comes to equity release is that you might not be able to leave your loved ones as much inheritance than if you chose against an equity release scheme.

However, there are ways to combat this. For example, by paying off some of the interest on your house you will be able to increase the amount of money you are able to leave your loved ones.

In addition to this, opting for a home reversion plan will involve having to sell off a piece of your property to the chosen lender.

Unfortunately, this means that when you come to sell your house, a percentage of the proceeds will have to go to the bank that originally lent you the money, instead of your next of kin.

It’s also true that equity release may impact your benefits. If you are claiming certain benefits, you will need to inform the Department of Work & Pensions that you’ve received equity release.

Finally, by choosing to release equity from your home in Tyne and Wear, you will find it harder to move house in the future, if you choose to do so. Your new lender will have to accept our equity release plan as part of your purchase.

The rules and regulations around this can be complex, which is why we will always suggest that you speak to an equity release adviser if you think that you might want to move house after taking out an equity release scheme.

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 Tyne and Wear:

1. Citizens Advice Newcastle

Address: 33 New Bridge St W, Newcastle upon Tyne NE1 8AX

Telephone: 0808 278 7823

Website: http://citizensadvice-newcastle.org.uk/

2. Citizens Advice Sunderland

Address: 5A Waterloo Pl, Sunderland SR1 3HT

Telephone: 0808 278 7950

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

3. NEFirst Credit Union

Address: Unit 12, JAckson House, 20 Jackson St, Gateshead NE8 1ED

Telephone: 0330 055 3666

Website: http://www.nefirstcu.co.uk/

4. Citizens Advice Bureau

Address: Camden House, Camden St, North Shields NE30 1ND

Telephone: 0300 330 9047

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

5. Moneywise Credit Union

Address: 187-189 Shields Rd, Newcastle upon Tyne NE6 1DP

Telephone: 0191 276 7963

Website: https://www.moneywise.org.uk/

6. Great North 2000 Transport Credit Union

Address: North Bridge St, Monkwearmouth, Sunderland SR5 1AQ

Telephone: 0191 514 2000

Please call our 24-Hour Helpline: 0330 058 1579

Equity release in Tyne and Wear – what are the costs?

Equity release in Tyne and Wear isn’t free, and it might not be the cheapest option when you take into account the interest rates. The interest rates for equity release schemes are slightly higher than they are with other types of loans, which ultimately means that you will have to pay back more when you pass away or move into a care home [3].

It is important to not forget that interest will grow into compound interest if it is not paid off in small, frequent amounts.

There are also a number of setup costs involved in equity release in Tyne and Wear and across the rest of the UK. For example, one of the most expensive parts of getting any type of mortgage is the solicitor fees.

Whilst many first time buyers might not be aware of how expensive solicitors cost, if you’re applying for an equity release plan then you would have paid for a solicitor in the past, to organise the purchase of the property you are living in.

Hopefully, this means that you have a good idea of how much a solicitor will cost you. Usually, the cost of an equity release solicitor sits anywhere between £1,000 and £3,000. However, this does depend on how large and complex your application is.

You should always shop around for the cheapest and best equity release solicitor across Tyne and Wear, although you will most probably have a tried and tested solicitor by the time you reach 55 years old.

As part of your equity release application, you will have to pay for a home valuation. This is where someone will visit your home and assess how much they think it is worth. This is an unavoidable part of the process, and usually costs anywhere between £100 and £200.

It is really important to think about these up front costs before you apply for an equity release loan. If you are in any doubt about the costs of an equity release loan, then you should speak to someone at Equity Release Warehouse.

Helpful questions to ask your equity release adviser

One of the first things you should do if you’re considering equity release in Tyne and Wear is speak to an equity release adviser at Equity Release Warehouse.

When you do sit down with an equity release adviser, it can be a daunting process. You might not know what to ask at first.

That is why the team at Equity Release Warehouse have put together a list of questions that you should be asking your adviser during one of your first meetings with them.

You should ask questions so that you feel like you have a full understanding of how equity release works before making any final decisions. Remember, when it comes to your future and your money, you can never ask too many questions.

Below is a list of some helpful questions to ask your equity release adviser.

  • What are the qualification criteria and do I meet all of them?
  • How will my health status affect my equity release application?
  • How much paperwork is involved in the equity release process?
  • How can I be assured that no one will ever force me to sell my house?
  • How can I be assured that I can still move house in the future if I choose to do so?
  • How much interest will be owed on the loan after I pass away?
  • What is a no negative equity guarantee and how might it help me and my family or next of kin?
  • Is it worth paying off the interest on my loan?
  • What are the main differences between lifetime mortgages and home reversion plans and which one is best for me?
  • How will my equity release loan affect my inheritance?
  • What do I do if I own the property with someone else?
  • What do I do if I live with someone else who does not own the property?
  • What happens if my tenant in common is under 55 years old?
  • What happens if I’m currently suffering from a health condition or suffer from one in the future?

Remember, no question is a stupid question. In fact, the more you learn about enquiry release the more you will feel equipped to make an informed decision.

Please call our 24-Hour Helpline: 0330 058 1579

What are the laws surrounding renting my house out if I take out an equity release loan?

Lots of people who take out an equity release loan in Tyne and Wear want to know the rules surrounding renting their house out after they take out the loan. This could be because they want to use their house as another form of income.

Nevertheless, once you take out an equity release loan in Tyne and Wear then you might not be able to rent out your house in the future, as your house must remain your main residence.

This is why you should always be clear with your equity release adviser about what your plans are in the future, so that they can recommend the best available options for you.

Speak to our team at Equity Release Warehouse

If you are considering equity release in Tyne and Wear, then speak to our team at Equity Release Warehouse. Our team will be able to advise you on all of your available options, and won’t ever put any pressure on you to make a decision.

They will use their equity release calculator to work out exactly how much equity you can release.

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 Tyne And Wear in Blaydon, Boldon Colliery, Gateshead, Hebburn, Houghton Le Spring, Jarrow, Killingworth, Longbenton, Newcastle Upon Tyne, North Shields, Ponteland, Ryton, Seaburn, South Shields, Sunderland, Tynemouth, Walbottle, Washington, Whickham, Whitley Bay and Wickham.

References

[1] https://www.equityreleasewarehouse.com/help-centre/

[2] https://www.equityreleasewarehouse.com/plans/home-reversion-plans/

[3] https://www.equityreleasecouncil.com/what-is-equity-release/

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