equity release in Aberdeen
In Aberdeen, equity release is increasingly used by older homeowners. You can continue to live in your home while taking out a loan against its value with the aid of this financial product.
This process of releasing equity can be a valuable tool for people who want to supplement their retirement income, pay off current mortgages, or finance long-term care, just a few options.
You can unlock the value in your home without relocating through equity release. The two main types of equity release are lifetime mortgages and home reversion programmes.
A lifetime mortgage lets you release tax-free funds as a lump sum or ongoing instalments. It is a loan that is secured by your home. The loan and rolled-up interest are repaid when you pass away or enter long-term care.
Most lifetime mortgages have a negative equity guarantee, ensuring you’ll never owe more than the value of your home.
The second type of equity release is when you sell all or a portion of your home to a company that offers a home reversion plan. In return, you receive a one-time or recurring payment and the right to keep the house without paying rent until your death.
The amount of equity you can release depends on your age, the equity release product you select, and the market value of your home. Using an equity release calculator to figure out how much equity you might release can be helpful.
One of the main advantages of equity release is the ability to access tax-free assets held in your property. This might lead to more money saved up for retirement, allowing for a higher standard of living.
Another significant benefit of equity release programmes is that they typically do not require monthly payments because the loan and interest are repaid when the property is sold. The majority of equity release products must have no negative equity guarantee.
As a result, even if a property’s value decreases, you will never owe more on it than it is worth, protecting you from going into negative equity.
You may also pay interest or make optional monthly payments under some plans, which can help you keep track of the balance of your loan.
Try Age Partnership’s equity release calculator and estimate how much money you could release from your property
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Despite its benefits, equity release comes with its risks and a sizeable financial investment. Interest rates on equity release options are typically higher than those on conventional mortgages.
Compound interest could eventually result in a sizeable debt, especially if you choose a plan for rolling the claim.
If you decide to do so, there may be fees associated with making an early loan repayment. Releasing equity from your property may also affect your tax situation and your eligibility for means-tested programmes.
It’s also crucial to remember that a home reversion plan frequently results in you receiving less money than the total market value of the sold portion because the provider will sell it when you pass away or start receiving long-term care.
The table below shows you some of the best equity release rates, as at December 2023, for lifetime mortgages, from some of the leading equity release providers in the UK.
These rates may have changed since this table was updated and should be taken as indicative only. There may also be other providers not listed on this table that could offer better deals. In addition, the providers and products noted below may not be right for your particular circumstances. Therefore, we strongly recommend that you speak to an equity release adviser, who will be able to provide you with information on the latest rates, that are applicable to you.
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| Product Name | Interest Rate | Type of product | Offers |
|---|---|---|---|
| Just For You – J2.5 | 6.22% | Fixed | Free ValuationNo application fee |
| Just For You – J1 | 6.30% | Fixed | Free ValuationNo application fee |
| Premier Flexible Pearl | 6.43% | Fixed | Free Valuation |
| Premier Optional Payment Pearl | 6.43% | Fixed | Free Valuation |
| Horizon 240 Drawdown | 6.43% | Fixed | Free Valuation |
| Classic Drawdown Super Lite 2 | 6.47% | Fixed | Free Valuation |
| Horizon 260 Drawdown | 6.47% | Fixed | Free Valuation |
| Classic Elite Drawdown Super Lite 2 | 6.47% | Fixed | Free Valuation |
| Premier Flexible Pearl | 6.48% | Fixed | Free Valuation |
| Premier Optional Payment Pearl | 6.48% | Fixed | Free Valuation |
| Horizon 240 Drawdown Fee Free | 6.49% | Fixed | Free ValuationNo application fee |
| Classic Drawdown Super Lite 1 | 6.52% | Fixed | Free ValuationNo application fee |
| Premier Flexible Pearl | 6.52% | Fixed | Free Valuation |
| Premier Optional Payment Pearl | 6.52% | Fixed | Free Valuation |
| Classic Elite Drawdown Super Lite 1 | 6.52% | Fixed | Free ValuationNo application fee |
| Flexible Pearl | 6.53% | Fixed | Free Valuation |
| Optional Payment Pearl | 6.53% | Fixed | Free Valuation |
| Enhanced Lifestyle Flexible Option | 6.53% | Fixed | Free ValuationNo application fee |
| Horizon 260 Drawdown Fee Free | 6.55% | Fixed | Free ValuationNo application fee |
The equity release rates have been sourced from Equity Release Supermarket. These indicative rates and incentives may have changed since this article was last updated. Therefore, they should only be taken as a guide and we cannot guarantee their current accuracy. Please also note that we do not provide advice on or endorse any particular product listed here. The rate you are offered will depend on your individual circumstances and subject to lender approval. We recommend that you speak to an equity release advisor to see what the best options are for you.
If you take out a product with Age Partnership, we will receive a fee for introducing you to them. By contacting Age Partnership through us, the cost of any equity release product would be the same as if you had contacted them directly. The fee we received is used to help keep our site operational and to produce new content.
Numerous providers and brokers in Aberdeen offer equity release plans. For instance, Portlethen Financial Services offers expert advice on equity release through a group of advisors who are members of the Equity Release Council.
This group enforces a strict code of conduct for its members and advocates for consumer protection. Obtaining unbiased financial advice from a qualified advisor is crucial before choosing an equity release programme.
They can explain the various options, including lifetime mortgages and home reversion programmes. Additionally, they can help you understand the associated costs, including advice fees, legal fees, and the overall expense of equity release.
The equity release process in Aberdeen typically begins with an advisory consultation followed by a meeting with independent legal counsel.
Following these meetings, if you decide to take the next step, the advisor will help you find the most suitable equity release product from a reputable supplier.
An equity release is a written contract between you and the lender. Therefore, before committing to an equity release plan, it is essential to have independent legal counsel.
An attorney can help you better understand your rights and responsibilities under the agreement, any early repayment penalties, and how they will affect your estate.
Customers are protected adequately by the Financial Conduct Authority (FCA), which regulates these products.
Providers and advisers are required to abide by the laws and regulations of the FCA, and any issues can be brought up with the Financial Ombudsman Service.
If you release equity from your property, it could significantly negatively impact your financial situation. It might affect your ability to receive means-tested benefits like pension credits and council tax exemption.
Understanding how releasing equity might affect your state benefits and discussing this with your advisor is essential. The funds distributed under an equity release plan are frequently tax-free.
However, if the money is invested, the income earned may be subject to taxation. Therefore, consulting a specialist to determine how equity release might affect your tax situation is advisable.
It is essential to seek professional advice before deciding on equity release. Your situation will be considered as they give you a thorough overview of the product by a financial advisor.
They can advise you on safely releasing equity by verifying that the supplier is a member of the Equity Release Council and offering a no-negative equity guarantee.
Advisors can also help you understand additional financial issues and debt relief options. If you’re having trouble paying off your current mortgage, remortgaging or downsizing might be better options.
Many Aberdeen residents have used equity release to improve their financial security in later life. For instance, one retired couple used a lump sum lifetime mortgage to finance their travel and home renovation.
They chose a product with a fixed interest rate and the option of monthly instalments to lessen the effects of interest roll-up. Another resident paid a drawdown lifetime mortgage to settle her previous loan in a single payment.
She then established a cash reserve for upcoming needs. The flexibility of this product allowed her to choose when and how much equity to release, giving her a great deal of comfort.
Equity Release in Aberdeen may be a sensible financial solution for many people, but it’s essential to fully understand the product and seek professional advice before taking action.
Two of Aberdeen’s many financial services are mortgage brokers and wealth management specialists who offer advice on various financial products, including equity release.
Companies like Portlethen Financial Services are dedicated to offering clients individualised, knowledgeable assistance with equity release. The Financial Services Register has certified that their team of advisors complies with UK regulatory standards.
Working with a mortgage specialist could be beneficial, particularly if you consider replacing your current mortgage with an equity release programme.
They could provide unbiased legal advice and help determine the legal fee, advisory fee, and other costs associated with equity release in Aberdeen.
Financial planning does not only apply to equity release plans. Additional services include asset management, retirement planning, and long-term care planning. A financial advisor can provide a complete picture of your financial situation, enabling you to make informed decisions.
Life insurance is a crucial consideration when releasing equity. It’s critical to understand how, if you have life insurance, an equity release loan might affect it.
A financial advisor can guide the best ways to use equity release proceeds to increase your life insurance and safeguard your loved ones’ financial future.
Equity-release experts can advise you on how to use your funds most efficiently. They can give you wise counsel on anything, including buying life insurance, paying off debt, and simply raising your standard of living.
The possibility that an equity release programme may affect the rights reserved in your life insurance policy must also be kept in mind. Even in this circumstance, professional advice can be very beneficial in pointing you toward the best course of action.
When considering equity release, one must be aware of the effects of compound interest. The interest on an equity release loan is frequently rolled up, which causes interest to build up over time.
This could significantly increase your overall debt, making it necessary to use the money from the sale of your house to pay it off. Making consistent payments towards the accumulated interest will reduce compound interest.
Since it is not required for most equity release instruments, many investors choose to let the interest accumulate. There may also be fees associated with early repayment if you decide to repay the loan before the due date.
Consider these fees because they are significant when planning for your financial future. Your equity release advisor can provide more details on early repayment penalties and how they might affect you.
The market value of your property has a significant impact on how much money you can release. Your property is worth more the more equity you can discharge. However, it’s important to remember that with lifetime mortgages, you can only borrow a portion of your home’s value.
Even though it is being used as collateral for the loan, your home is still yours to live in until you pass away or enter long-term care.
As long as the new home meets the criteria set forth by your equity release provider, you can transfer your equity release plan if you decide to move.
Even if the value of your property decreases, the no negative equity guarantee provided by members of the Equity Release Council ensures that you won’t owe more than it is worth. This is an essential precaution that reduces the risk of changes in the real estate market.
Equity release is one method for paying for your later years. Downsizing to a smaller home, using investments or savings, or relying on pensions are additional options. An equity release specialist can recommend your best action based on your situation.
Before considering equity release, Get advice immediately if you already have a mortgage. Remortgaging or switching lenders might be a more cost-effective option.
It’s critical to consider how equity release may affect your family before taking further action and to let them know about your intentions.
Equity release can provide financial security in your later years with the proper guidance and careful planning despite requiring a sizeable financial investment.
Before making any financial decisions, it’s essential to research, understand the risks and rewards, and get advice from a professional.
Aberdeen, also known as the “Granite City,” is a charming city in the northeast of Scotland. The county of Aberdeenshire contains the town, which is well-known for its magnificent granite structures that sparkle in the sunlight.
The main postcode ranges for Aberdeen are AB10 to AB12 and AB15 to AB16, and the city’s area code is 01224. This thriving city has a long history dates back to the eighth century and is the third most populous in Scotland.
Two illustrious academic institutions, the University of Aberdeen and Robert Gordon University, have significantly contributed to Aberdeen’s reputation as a learning centre. Aberdeen is frequently called the “Oil Capital of Europe,” and it has a thriving oil industry.
However, Aberdeen is not just a business city. The Aberdeen Music Hall has several museums and art galleries and hosts various performances and events.
The city has a lot of beautiful parks and gardens, like Duthie Park, where the Winter Gardens are located and has a wide variety of plant life.
Aberdeen is proud of its lively promenade, home to various cafes, restaurants, amusement arcades, and lovely sandy beach.
Despite its urban appeal, Aberdeen is a popular vacation destination for city dwellers and outdoor enthusiasts because it is a gateway to the stunning Scottish Highlands.
Here is a list of local areas and boroughs where equity release services can be provided:
And here is a list of towns, villages, and boroughs within 10 miles of Aberdeen:
Try Age Partnership’s equity release calculator and estimate how much money you could release from your property
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Meet the author
Jane is one of our primary content writers and specialises in elder care. She has a degree in English language and literature from Manchester University and has been writing and reviewing products for a number of years.
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Unlike most equity release advisors, Boon Brokers do not charge any fees! Have a free consultation to see how they can help.
You can speak to Boon Brokers on the number below and discuss your options.
0333 567 1812
Use the equity release calculator and see how much money you could receive.
You can book a callback from an equity release specialist, who can call you when it's conveniant.
All equity release advice is provided by Boon Brokers Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.
If you take out a product with Boon Brokers, we will receive a fee for introducing you to them. Boon Brokers provides advice for free and without obligation. By contacting Boon Brokers through us, the cost of any equity release product would be the same as if you had contacted them directly.
The fee we receive is used to help keep this site operational and to produce new content.
Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
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