Equity Release in Basingstoke

Equity Release In Basingstoke | April 2024

Equity release options in Basingstoke allow homeowners to leverage their property’s value for financial benefit, particularly in retirement. The article will help you do the following – 

1 – Understand the significance of considering equity release.

2 – Learn about the financial and legal implications involved.

3 – Explore different types of equity release products.

4 – Recognise the benefits of knowledgeable decision-making in this area.

5 – Determine the next steps if considering an equity release plan.

Key Takeaways & Learnings From This Page on Equity Release In Basingstoke

1 – Equity release offers a means for homeowners in Basingstoke to access the equity in their property as a lump sum or regular payments.

2 – It is vital to consider the financial advice and legal implications before opting for equity release.

3 – Trends show a significant reduction in the equity release market in 2023, with a cautious approach noted among consumers.

4 – The UK Care Guide predicts a stabilisation in the equity release market for 2024, with a likely increase in the popularity of drawdown lifetime mortgages.

5 – Understanding the differences between lifetime mortgages and home reversion plans is crucial.

6 – Equity release can impact inheritance tax and affect your eligibility for means-tested benefits.

7 – It’s advisable to consult with a financial adviser to explore personal circumstances and options if you’re considering equity release.

Topics that you will find covered on this page

What Is Equity Release?

Homeowners still residing in their homes can use equity release as a type of financial arrangement to release equity from their properties. This can be achieved by various equity release products, like lifetime mortgages and home reversion plans

A loan secured by the value of your property, such as an equity release mortgage, enables you to access the money you require. Your age, the market value of your home, and the equity release product you select all impact how much you can release. You can use an equity release calculator to calculate how much equity you can remove.

It’s critical to get unbiased financial advice from a licenced adviser when considering equity release. They can offer you knowledgeable advice on equity release, assisting you in comprehending the implications of your choice, including how it will affect your tax situation and eligibility for means-tested benefits.

Equity Release Trends And Data From 2023

In 2023, the equity release market experienced a significant decline, with only 64,448 active customers engaging in new plans, drawdowns, or extensions. This represented a 31% decrease from the previous year, which had 93,421 active customers. The total annual lending in the sector fell to £2.6 billion, a sharp drop from the record £6.2 billion in 2022, echoing activity levels similar to those seen between 2016 and 2017.

The number of new equity release plans finalised in 2023 was 26,119, showing a substantial 47% decrease from the 49,285 plans initiated in 2022. There was a notable shift in preference, with 53% of new agreements favouring drawdown lifetime mortgages over the previous year’s preference for lump sum lifetime mortgages, which constituted 52% of the sales. This change highlights a more cautious approach from customers towards managing their equity release.

The average loan size for new lump sum customers was significantly reduced by 26%, dropping from £131,687 in 2022 to £97,878 in 2023. This reduction marked the first time since 2019 that average borrowing for lump sums fell below £100,000. On the other hand, new drawdown customers maintained similar reserve facilities in 2022 but reduced their initial borrowing by 31%, from £89,242 to £61,652.

Returning drawdown customers in 2023 numbered 31,329, who withdrew funds from their reserves. This number shows a slight decline from 35,474 in 2022 but an increase from 30,521 in 2021. The consistent use of drawdown reserves indicates a continued reliance on this flexible form of equity release among existing customers.

UK Care Guide’s Predictions for Equity Release in Basingstoke For 2024

In Basingstoke, the average house price in 2023 stood at £353,251. Based on this value, homeowners could potentially release various amounts through equity release, such as 20% equalling £70,650, 40% equalling £141,300, and up to 60% equalling £211,951. These figures provide a range of options for homeowners considering accessing the equity tied up in their homes.

For 2024, the UK Care Guide anticipates a cautious but stabilising trend in the equity release market within Basingstoke. Economic factors and market conditions are expected to influence the decision-making processes of potential customers. Stability in house prices may encourage more homeowners to consider the benefits of equity release as a financial tool.

Our predictions also suggest that there may be an increase in the popularity of drawdown lifetime mortgages, continuing the trend from 2023. This product allows more flexibility and control over the funds, which could appeal to homeowners looking to manage their financial exposure more carefully. The drawdown option typically attracts those who wish to have access to their funds as needed rather than receiving a large lump sum.

Overall, the UK Care Guide predicts that equity release will remain an important option for homeowners in Basingstoke seeking to supplement their retirement finances or manage financial needs. Awareness and education about the benefits and risks associated with equity release will be key to its continued utilisation.

Equity Release Options in Basingstoke

Lifetime mortgages and home reversion plans are the two main categories of equity release options. Most lifetime mortgages include a negative equity guarantee, protecting you from financial traps by guaranteeing that the loan balance will never exceed the property’s value.

The most popular equity release product, lifetime mortgages, lets you borrow a portion of the value of your house at a fixed interest rate. With this strategy, you can take the loan out in one lump sum or over time. On the other hand, home reversion entails giving a provider a portion of your property in exchange for a tax-free lump sum or ongoing payments. You still have the right to live there for the rest of your days without paying rent.

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 Implications of Equity Release

Releasing equity from your house is a decision with significant legal repercussions. Therefore, seeking impartial legal counsel is essential before signing an equity release agreement. 

Changes to your current mortgage agreement and their effects on your individual voluntary arrangement (IVA) are the two primary legal issues for equity release agreements. The Financial Conduct Authority (FCA) regulates equity release, and all providers must follow the guidelines established by the Equity Release Council. This includes upholding the rule of “no negative equity guarantee,” which guarantees you’ll never owe more on your mortgage than the house is worth.

Equity Release in Basingstoke

Some of the Best Equity Release Interest Rates as of 18 April 2024

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

Provider NameProduct NameInterest RateType of productOffers
JustJust For You – J1 Green5.35%FixedFree Valuation
No application fee
JustJust For You – J2 Green5.40%FixedFree Valuation
No application fee
Scottish WidowsFR15.50%FixedCashback
Free Valuation
No application fee
JustJust For You – J25.50%FixedFree Valuation
No application fee
Standard LifeHorizon 200 Drawdown5.50%FixedFree Valuation
Standard LifeHorizon 200 Drawdown Fee Free5.55%FixedFree Valuation
No application fee
Scottish WidowsFR25.57%FixedCashback
Free Valuation
No application fee
Standard LifeHorizon 220 Drawdown Fee Free5.59%FixedFree Valuation
No application fee
Standard LifeHorizon 240 Drawdown5.59%FixedFree Valuation
More 2 LifeCapital Choice Ultra Lite Drawdown 15.60%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.

The Financial Implications of Equity Release

Your financial situation may be significantly impacted by equity release. Over time, the interest charges on your borrowed money can increase your debt. 

The interest is rolled up and added to the loan if you select a plan that requires no monthly payments, which may significantly increase the total amount owed over time.

Equity release, though, can also be advantageous. Your finances may benefit from it by receiving regular payments or a lump sum of tax-free money. You can use this money to uplift your standard of living, settle debts, or even buy a new home.

Your eligibility for state benefits could also be impacted by equity release. As your financial situation changes, you might no longer be eligible for means-tested benefits, such as council tax reduction. Before making a choice, it is crucial to consider these and seek debt advice.

Advantages And Disadvantages of Equity Release

Equity release has several advantages and disadvantages. It can allow you to access tax-free money without leaving your house. This can be used to pay off debts, supplement your retirement savings, undertake home improvements or lend money to a trusted friend or loved one. Furthermore, agreements with a no negative equity guarantee ensure you will never owe more than the value of your home, meaning you won’t pass on any debts to your loved ones after you pass away.

However, if you choose to repay the loan earlier than planned, one of the main risks is the potential for early repayment fees. In addition, because compound interest works quickly, the interest rates on these mortgages may be higher than those on standard mortgages. Equity release can also affect your eligibility for means-tested benefits, your tax situation and reduce the value of the inheritance you may want to leave to your loved ones. 

The Role of Equity Release Advisors

It’s important to consult an equity release advisor before entering any agreements. They provide professional equity release advice, walking you through the different equity release options and assisting you in comprehending the potential ramifications of each.

You can evaluate the effects on your tax situation, state benefits, and any potential early repayment charges with the aid of a good advisor. Additionally, they can help you investigate alternatives to equity release so you can make a decision that meets your financial needs.

Equity Release and Inheritance Tax

The potential effect on inheritance tax is a crucial factor to consider when releasing equity. Equity release may lower the amount of inheritance tax your heirs will have to pay by reducing the value of your estate. To fully comprehend the potential implications, it is advised to seek independent legal advice, as this is a complex area of law.

Alternatives to Equity Release in Basingstoke

Homeowners in Basingstoke interested in accessing additional funds have other options besides equity release. Other options include moving into a smaller home, getting a traditional mortgage or loan, or renting out a portion of your house.

Each alternative has its factors to take into account, such as price, potential legal ramifications, and lifestyle impacts. Before making a choice, it’s important to consider all available options and seek objective financial advice.

Securing Equity Release Mortgages

Many homeowners in Basingstoke opt for equity-release mortgages, especially lifetime mortgages. In this kind of equity release contract, your home’s entire market value is used as collateral for a loan. When the homeowner passes away or enters long-term care, the loan and rolled-up interest are paid back. Usually, the value and age of your property determine how much you are permitted to borrow. 

Most lifetime mortgages provide a no negative equity guarantee, ensuring that even if the market value of your home declines, you will never owe more than it is worth. However, it’s essential to be aware that if you repay the loan early, you might have to pay early repayment fees. We advise that you seek guidance from an equity release advisor if you want to get an equity-release mortgage. These experts can help you decide if equity release is the best option by offering knowledgeable advice.

Using an Equity Release Calculator

An equity release calculator is a valuable tool to determine how much equity you could release from your home. By entering information such as your age, the value of your property, and the kind of equity release product you’re considering, you can get an approximate idea of the lump sum you will receive.

It’s crucial to remember that this is only an estimate. The precise terms of your equity release plan, the value of your home at the time of the agreement, and other variables will determine the actual amount you can release. 

Equity release may have benefits, but only some are good candidates. Consider all your options before choosing, including downsizing, remortgaging, and borrowing money from family. You should also always seek unbiased financial advice to ensure you’re taking the right action for your situation.

About Basingstoke

Basingstoke is a thriving town in southern England. It is a sought-after location to live and work because of its extensive history and contemporary amenities. In Basingstoke, the primary postcode ranges from RG21 to RG24. These encompass a range of residential and commercial properties and cover Basingstoke’s central area, extending to the town’s north, east, and west parts.

The intriguing combination of old and new in Basingstoke is one of its distinctive features. Numerous historical sites exist, including the remains of Basing House, once England’s most significant private residence. The town also has Festival Place, a cutting-edge shopping mall with over 200 stores and eateries.

Basingstoke is renowned for its literary contributions. Jane Austen, one of the most well-known English novelists, was born there. In the nearby village of Chawton, visitors can now tour her house, which has been converted into a museum.

Basingstoke is also well known for its parks. The town’s numerous parks and natural areas offer residents and visitors plenty of opportunities for recreation and relaxation. The city is surrounded by the breathtaking Hampshire countryside, which features picturesque vistas and lovely landscapes.

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) Old Basing

2) Chineham

3) Lychpit

4) Popley

5) South Ham

6) Brighton Hill

7) Oakridge

8) Hatch Warren

9) Kempshott

10) Buckskin

11) Winklebury

12) Kings Furlong

13) Eastrop

14) Black Dam

15) Viables

And here are the towns, villages, and boroughs within 10 miles of Basingstoke:

1) Oakley

2) Overton

3) Whitchurch

4) Tadley

5) Kingsclere

6) Alton

7) Hook

8) Hartley Wintney

9) Odiham

10) Bramley

11) Sherfield on Loddon

12) North Waltham

13) Dummer

14) Baughurst

15) Cliddesden.

Our Final Thoughts

The topic of equity release in Basingstoke encompasses various aspects including financial benefits, market trends, and legal implications. Key information to consider includes – 

1 – Equity release can supplement retirement income or provide funds for other expenses.

2 – Market trends in 2023 indicate a downturn, with recovery expected.

3 – Homeowners should assess different product options like lifetime mortgages versus home reversion plans.

4 – It’s crucial to understand the impact on inheritance tax and benefit eligibility.

5 – Professional advice is recommended to navigate the complexities of equity release.

6 – Equity release schemes come with certain costs and implications that need a thorough evaluation.

7 – Future actions might include using online calculators for preliminary assessments and contacting a licensed adviser for detailed guidance.


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

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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

Tom Walker

Tom is a Content Writer and Editor for UK Care Guide, having previously acted as Head of Online for the Manchester Historian, and also the former editor for The Peterloo Institute.

Tom is a graduate of the University of  Manchester with a BA (Hons) History degree. 

His particular specialisms include writing on issues relating to later life (e.g. stairlifts, live-in care) and elderly care, having previously worked in a care capacity.