equity release in Andover

Equity Release In Andover | March 2024

In Andover, equity release is a type of financial product that enables homeowners, usually those over 55, to borrow money against the value of their property while still living there. 

You can release the tax-free cash locked up in your property with the help of a financial adviser’s expert equity release advice. Depending on the equity release product selected, this could be a tax-free lump sum or ongoing payments.

Table of Contents

Understanding Equity Release

If you are a homeowner in Andover, you may be familiar with equity release as a way to access the value of your home. The concept is straightforward: If your home has a high market value, you can release equity without selling it. 

Your property’s value can be removed through equity, giving you access to additional funds for your later years. The two main categories of equity release products are lifetime mortgages and home reversion plans. 

You can release equity while keeping your home ownership with a lifetime mortgage, a loan secured against your house. 

Most lifetime mortgages do not require monthly payments; instead, the loan balance and any accumulated interest are paid off upon death or admission to long-term care. 

On the other hand, home reversion plans entail selling a portion of your entire home to a home reversion business in exchange for a cash lump sum or ongoing payments. 

You have the right to remain in the house rent-free until you pass away, but you must agree to keep it maintained and insured. 

Because it involves taking out a loan against the value of your home, equity release in Andover can be a significant financial commitment. Therefore, obtaining independent legal advice and unbiased financial advice from financial advisors is essential before moving forward. 

Types of Equity Release Schemes

In Andover, there are two ways to release equity: lifetime mortgages and home reversion plans. The most popular equity release product is a lifetime mortgage. 

With this plan, you borrow money against your property with no repayment obligations until you pass away or enter long-term care. Typically, no monthly payments are required, and the interest accumulates over time while you retain full ownership of your home. 

In-home reversion plans, you sell some or all of your property to a provider for a discount from its market value. You keep your home for the rest of your life without paying rent, but you lose ownership of a portion of your property. 

It’s essential to seek professional equity release advice to select the option that best suits your needs because each type of equity release has advantages and disadvantages.

You can also watch this video on Youtube here.

Try Age Partnership’s equity release calculator and estimate how much money you could release from your property.

If you take out a product from Age Partnership, we will receive a fee for introducing you to them. This helps support the site and for us to produce more content.

Legal Aspects of Equity Release

The Financial Conduct Authority (FCA) regulates equity release products to ensure that suppliers uphold high standards of behaviour. The “no negative equity guarantee” is a crucial legal component of equity release. 

This prevents you from entering negative equity because you’ll never owe more than the house is worth. It’s also crucial to consider how equity release will affect your tax situation and ability to receive means-tested benefits. 

Releasing equity from your home may impact Your eligibility for state benefits and tax situation. To fully grasp the potential effects, speak with a financial advisor or an authority on equity release.

Equity Release in Andover

Best Equity Release Interest Rates as of 24 February 2024

The table below shows you some of the best equity release rates, as of 24 February 2024, for lifetime mortgages from some of the leading equity release providers in the UK. 

Provider NameProduct NameInterest RateType of productOffers
Standard LifeHorizon 200 Drawdown5.26%FixedFree Valuation
Standard LifeHorizon 200 Drawdown Fee Free5.31%FixedFree Valuation
No application fee
More2LifeCapital Choice Ultra Lite Drawdown 15.46%FixedFree Valuation
No application fee
LV=Drawdown Lifestyle DD15.58%FixedFree Valuation
No application fee
Scottish WidowsFR15.60%FixedCashback
Free Valuation
No application fee
Standard LifeHorizon 280 Drawdown5.60%FixedFree Valuation
Legal & GeneralInterest Roll-Up 15.61%FixedFree Valuation
Legal & GeneralOptional Payment 15.61%FixedFree Valuation
LV=Drawdown Lifestyle DD25.63%FixedFree Valuation
No application fee
Legal & GeneralInterest Roll-Up 1 (no fee)5.65%FixedFree Valuation
No application fee

The equity release rates have been sourced by UK Care Guide from the Equity Release Supermarket website. These rates may have changed since this table was created and should be taken as indicative only. There may be other providers not listed on this table that could offer better deals.  In addition, the providers and products noted may not be right for your particular circumstances.  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. 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 apply to you.

Speak To An Equity Release Specialist Today

Call Boon Brokers on 0333 567 1607 to discuss your equity release requirements and see what deals are available to you.

Benefits of Equity Release in Andover

You can improve your retirement lifestyle by accessing tax-free money by releasing equity from your home. 

Equity release can give you the financial boost you require, whether you need it to pay off an existing mortgage, fund home improvements, assist family members, or simply want a more comfortable lifestyle. 

Accessing the money while remaining in your home is a crucial advantage of equity release. This may be especially appealing if you want to visit close to your Andover neighbourhood, friends, and family. 

Additionally, you have the assurance that you will never owe more than your home is worth, thanks to the “no negative equity guarantee”.

Risks and Concerns of Equity Release

While equity release can provide instant access to additional funds, risks are involved. A lifetime mortgage’s interest can compound quickly, significantly increasing the balance you owe. Any inheritance you had hoped to leave behind could be destroyed or destroyed by this. 

Repaying the equity release plan may be costly due to early repayment fees. Additionally, depending on the contract terms, you might not be able to transfer your equity release plan if you decide to move to a new property. 

Taking out an equity release may affect your tax situation and eligibility for means-tested benefits, so keep that in mind.

Cost and Fees of Equity Release

The price of equity release is affected by several variables, such as the market value of your home, the kind of equity release product you select, and interest rates. Additionally, there are several fees related to equity release, such as advice, valuation, and legal costs. 

You pay your financial advisor’s advice fees in exchange for their professional equity release advice. The cost of valuing your home to determine how much you can borrow is covered by valuation fees. 

You must pay legal fees for a solicitor to handle the legal work necessary for equity release.

Choosing an Equity Release Provider

When selecting an equity release provider, it’s essential to consider their reputation, product selection, and customer service. To ensure the security of their clients, seek out Equity Release Council providers. 

Your equity release adviser can assist you in sifting through the options to locate a supplier with a service that meets your requirements. Remember that it’s crucial to consider the interest rate, the total cost, and the product’s flexibility.

Alternatives to Equity Release

Before deciding to release equity from your home, it is worthwhile to weigh your options. Moving into a smaller home can free up money without needing a loan. Or you can host a lodger or book a room on an online rental service like Airbnb. 

Consider seeking advice from a reputable organisation like StepChange Financial Solutions if you have debt problems. They can assist you in making a strategy to pay off your debts without taking on more debt. 

Remember that equity release is a significant choice and not appropriate for everyone. Getting unbiased financial advice is imperative before moving forward.

Calculating Equity Release Amounts

Your property’s market value and age significantly impact how much equity you can release. An equity release calculator can estimate how much equity you could release. It’s important to remember that this is only an estimate and that the precise sum may differ.

If you currently have a mortgage, that will also be considered. The unpaid loan must be paid off before using money from an equity release mortgage. Your release amount might be lowered if you still owe a sizable mortgage.

The worth of your property is crucial in determining the equity release amount. You can release more equity if the property value has increased significantly. However, you might discover that you can remove less if the property’s value has decreased.

Planning for Early Repayment Charges

An early repayment charge clause is typically included in equity release agreements. If you pay off your equity release mortgage before the term of the contract expires, this fee is due. It is intended to cover any potential loss of interest revenue to the lender.

The early repayment fee, frequently a percentage of the initial lump sum borrowed, is high. As a result, it’s crucial to include this expense in your financial planning. Talk to your financial advisor if you want to pay off your equity release mortgage early.

Making monthly payments can also help control the price of early repayment fees. Lower the total amount owed and the early repayment fee by regularly paying off the interest or a portion of the loan.

Navigating Equity Release Costs

The costs of equity release can be complicated. The interest rates on loans, expert equity release advice fees, independent legal advice fees, and other expenses like setup and valuation fees are among them. 

Before committing to any equity-release product, it is essential to comprehend these costs.

An equity release mortgage’s interest rate is typically rolled up, which means it is added to the loan and grows over time. 

Over time, this can significantly raise the amount of the outstanding loan. Therefore, it is essential to comprehend the interest rate and how it is used. Fees for advice can also add up. 

You’ll have to pay a financial adviser for their professional equity release advice and the cost of legal counsel. These costs should be included in the total price of equity release even though they are necessary to ensure you understand your commitment.

Reviewing State Benefits and Council Tax

Your state benefits and council tax may be impacted if you release equity from your home. There is a means test for some uses, including Housing Benefits and Pension Credit. This means they consider your income, assets, and any cash you release from your home.

These advantages may be diminished or lost if equity is released, depending on your situation. So, before deciding to release equity, think about this. You can better understand how equity release might impact your benefits and council tax by speaking with a financial advisor.

Additionally, some local councils provide council tax reductions or exemptions in certain circumstances. For instance, you can receive a 25% council tax discount if you live alone. 

To find out if you qualify for discounts or exemptions, it is worthwhile to check with your local council.

About Andover

In the middle of the UK, in the county of Hampshire, is the charming town of Andover. It is renowned for its lengthy history, thriving culture, and lovely surroundings. The city is in the Test Valley, and the River Anton runs through its heart, enhancing the area’s natural beauty.

Andover’s telephone area code is 01264. All landline numbers in the town and its immediate surroundings must use this code. The central postcode districts for Andover are SP10 and SP11, which cover the town centre and the surrounding rural areas.

In the records of British history, Andover occupies a unique position. Since the Saxon era, it has been a settlement, and in the 18th century, it thrived as a market town. 

The Andover Museum and Museum of the Iron Age and the city’s numerous listed buildings testify to the area’s rich history. Andover also has a thriving arts community, with The Lights, a cutting-edge, multi-use entertainment venue, acting as the city’s cultural centre. 

As a result of its proximity to the North Wessex Downs, an Area of Outstanding Natural Beauty, the town also provides a wide range of outdoor activities. Andover’s close military ties are yet another intriguing fact. 

The town serves as a significant military base in the UK and is home to the Army Air Corps Centre and the Museum of Army Flying.

Local Areas Where Equity Release Can Be Provided

Here is a list of local areas and boroughs where equity release services can be provided:

1) Charlton

2) Anna Valley

3) Picket Piece

4) Foxcotte

5) Weyhill

6) Abbotts Ann

7) Penton Grafton

8) Penton Mewsey

9) East Cholderton

10) Wherwell

11) Goodworth Clatford

12) Thruxton

13) Kimpton

14) Ludgershall

15) Tidworth

16) Stockbridge

17) Kings Somborne

18) Longstock

19) Middle Wallop

20) Over Wallop

21) Nether Wallop

22) Sutton Scotney

23) Whitchurch

24) Hurstbourne Tarrant

25) Highclere

26) Newbury.

Try Age Partnership’s equity release calculator and estimate how much money you could release from your property

Financial Promotions Sign-off

Where applicable, the adverts for Boon Brokers on this page have been signed off as a Financial Promotion by Boon Brokers Limited, to ensure that they are in compliance with Section 21 of FSMA. Boon Brokers Limited is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.

The Age Partnership equity release calculator has been approved and provided by Age Partnership. Age Partnership is a trading name of Age Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432.

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Meet the author

Jane Parkinson

Jane Parkinson

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.

Meet The Team

Most advisors charge for their service.  But you can get fee-free equity release advice from Boon Brokers. 

Call : 0333 567 1812

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If you take out a product from Boon Brokers, we will receive a fee for introducing you to them.

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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