Equity Release in Bath

Equity Release In Bath | March 2024

For homeowners in Bath who are 55 or older and want to access money tethered to the value of their homes, an equity release is a financial option. This is feasible without downsizing and moving, a choice gaining favour in the South West. 

But before moving forward, it’s crucial to comprehend what equity release is.

Table of Contents

Understanding Equity Release

Various products, known as equity releases, enable older homeowners to access their homes’ equity while residing there. Lifetime mortgages and other equity-release products allow you to withdraw tax-free cash from the value of your home. 

It is a secured loan, with principal repayment and interest upon your death or admission to a long-term care facility. You won’t ever owe more than the value of your home thanks to the equity release’s no negative equity guarantee. 

Before making this significant financial commitment, it is necessary to obtain unbiased financial advice. You can get advice from an equity release adviser on the various equity release plans, their costs, and how they might affect your tax situation and eligibility for state benefits.

Equity Release Schemes in Bath

Lifetime mortgages and home reversion plans are the two main varieties of equity release programmes in Bath. Most lifetime mortgages let you continue to own your home while borrowing up to a percentage of its market value. 

When you pass away or enter long-term care, your property is typically sold to pay off the mortgage. On the other hand, home reversion entails selling all or a portion of your home to a reversion plan provider in exchange for a one-time payment or recurring payments. 

Rent-free occupancy is permitted in your home for the rest of your days. Nevertheless, depending on your age and health, you will only get 20% to 60% of your home’s market value.

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.

Eligibility Criteria for Equity Release

You must be at least 55, own a home in the UK, and be in good physical condition to qualify for equity release in Bath. Some equity release service providers might demand that you use the money you receive to pay off any outstanding mortgages.

The worth of your home and the amount of equity you own in it also affect your eligibility. The amount of money you can release can be calculated using an equity release calculator. 

To understand the effects of removing equity from your home, consult a financial or equity release adviser.

Equity Release in Bath

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 

Equity release offers tax-free funds that can be used for various things, including home improvements, supplemental retirement income, and helping family members. This is one of the main advantages of equity release. 

With most lifetime mortgages, you can receive reoccurring payments or release the funds in one lump sum. The ability to manage debt is another benefit of equity release. You can use the money released to pay off any loans or mortgages still owed you. 

Additionally, you are guaranteed that your estate will never owe more than the value of your home, thanks to the no negative equity guarantee.

Pitfalls of Equity Release 

Even though equity release is advantageous, there are some potential risks. Your tax situation may be impacted, and you may have less eligibility for means-tested benefits. 

Because loan interest rates can be higher than those on conventional mortgages, borrowing money can be more expensive.

If you repay the equity release plan earlier than planned, early repayment fees might be assessed. Additionally, releasing home equity now will lower the inheritance you can leave to your heirs.

Legal Regulations for Equity Release

The Financial Conduct Authority regulates equity release products, always ensuring your protection. The Equity Release Council, a trade organisation for the equity release sector, also establishes specific requirements and guidelines.

A legal opinion from a third party should be sought before signing an equity release agreement. Talking about your plans with your family and financial advisor is also good because they can offer knowledgeable equity release advice.

Choosing an Equity Release Adviser 

Consult with a knowledgeable adviser before deciding on equity release. They can offer knowledgeable guidance on equity release, outlining its benefits and risks. Additionally, they can suggest the equity release product that best suits your requirements.

All associated costs, including advice fees, legal fees, and any early repayment penalties, should be thoroughly explained by your adviser. Along with equity release, they should discuss alternatives like downsizing to a smaller home or using savings.

Alternatives to Equity Release

Equity release is not the only way to access additional funds in later life. A smaller home, renting a space in your residence, or taking in a lodger are different options. Consider using your savings, investments, or other resources to make money.

Another viable choice might be a secured or personal loan; alternatively, you might ask your family for support. Considering all options and discussing them with a financial advisor before choosing is crucial.

Seeking Professional Equity Release Advice

Before making a choice, you must get expert equity release advice. Financial advisors with expertise in equity release can offer unbiased advice suited to your needs. 

They can guide how much equity you can release from your home and assist you in understanding the complicated aspects of equity release products. The Financial Conduct Authority governs financial advisers listed on the Financial Services Register. 

They follow a strict code of conduct to give accurate and trustworthy advice. If you decide to pursue alternatives like a retirement mortgage or secured loans, they can also help you comprehend your options.

Their services might come with advice fees, which should be clarified upfront. These fees pay for their professional counsel and the time they put into finding the best equity release option for your circumstances. Selecting an appropriate equity release mortgage is a significant investment that will impact your long-term financial planning.

Impact of Equity Release on State Benefits

Your ability to receive state benefits may be impacted by equity release. The cash lump sum you receive from releasing equity could be viewed as income or capital, affecting means-tested benefits. 

Another justification for the importance of consulting with experts in equity release is this.

You should research any potential effects on your council tax before releasing equity.

You may be eligible for a council tax reduction if your income falls below a particular threshold. Information about this and other relevant topics can be obtained from qualified advisors.

It’s also a good idea to consider how releasing equity will affect your specific voluntary arrangement if you have one. You should discuss this with a free debt counselling service like Stepchange Financial Solutions.

What to Expect from Your Equity Release Provider

Look for one member of the Equity Release Council when selecting an equity release provider. This guarantees that they uphold the strict guidelines and standards established by the council to protect consumers. 

To ensure that you will never owe more than the value of your property, they must offer a no-negative equity guarantee. Equity release providers provide different types of products, each with specific terms and conditions. 

Some allow for one-time payments only, while others permit recurring payments. While some plans only call for a refund when your home is sold, others let monthly repayments control the interest roll-up.

The provider must fully disclose all associated costs before you agree, including the interest rate, potential early repayment fee, and legal fee. They should also give you a detailed plan outlining the risks involved, the amount of money you can release, and how to receive it.

About Bath

Bath, which is in the South West of England, is rich in grandeur and history. It is a popular tourist destination because it is famous for its Roman-built baths and is tucked away in the county of Somerset. 

The city’s primary postcode areas are BA1 and BA2, and its telephone area code is 01225.

With more than a million visitors each year, Bath is well known for its preserved Roman Baths. 

Along with the Royal Crescent, a row of 30 terraced homes in the shape of a sweeping crescent, the city is also home to the magnificent Bath Abbey, a former Benedictine monastery. 

Bath is renowned for its thriving arts scene and historical significance. The city is home to the annual Bath Literature Festival and Bath Film Festival, which draw visitors from all over the country. 

Bath’s history as a spa town dates back to the Celtic era, thanks to the town’s natural hot springs. Thermae Bath Spa, the city’s thermal spa, enables visitors from today to take a bath in the warm, mineral-rich waters just like the Celts and Romans did more than 2000 years ago.

Last but not least, Bath is more than just history and culture. It’s also a bustling, multicultural city with various eateries, stores, and businesses that combine the old and the new.

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) Bathwick

2) Combe Down

3) Kingsmead

4) Odd Down

5) Oldfield

6) Southdown

7) Twerton

8) Westmoreland

9) Widcombe

10) Lansdown

11) Lyncombe

12) Newbridge

13) Walcot

14) Abbey

15) Bathampton

16) Batheaston

17) Bathford

18) Charlcombe

19) Swainswick

20) Weston

21) Bear Flat

22) Bloomfield

23) Claverton Down

24) Lower Weston

25) Upper Weston

26) Larkhall

27) Fairfield Park

28) Camden

29) Widcombe & Lyncombe

30) Moorlands

31) Southdown

32) Twerton

33) Westmoreland

34) Oldfield Park

35) Bath City Centre

36) Lansdown

37) Newbridge

38) Weston, Bath

39) Bathford

40) Bathampton

41) Batheaston

42) Claverton

43) Clutton

44) Freshford

45) High Littleton

46) Hinton Charterhouse

47) Midsomer Norton

48) Paulton

49) Peasedown St John

50) Radstock

51) Saltford

52) Timsbury

53) Westfield

54) Norton Radstock

55) Keynsham

56) Almondsbury.

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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