Equity Release in Blackpool

Equity Release In Blackpool | March 2024

Homeowners in Blackpool, particularly retirees, can access the value of their property without having to sell it through equity release. It has unique features, advantages, and considerations as a financial product.

Table of Contents

Understanding Equity Release

Equity release entails releasing your home’s value and turning it into a one-time or recurring payment. It is primarily intended for homeowners 55 and older, allowing them to supplement their income or pay for home improvements, among other costs.

Lifetime mortgages and home reversion plans are the two primary categories of equity release products. With either choice, homeowners can borrow money against the value of their property and receive a lump sum of cash, ongoing payments, or a combination of both.

The most prevalent kind of equity release product is a lifetime mortgage. They involve a mortgage that is secured by the property. The homeowner still owns the property and is exempt from making regular payments. 

Instead, when the homeowner passes away or enters long-term care, the loan and accrued interest are paid back. 

On the other hand, a home reversion plan entails selling all or a portion of your property to a provider of a home reversion scheme in exchange for a tax-free lump sum or ongoing payments. 

Until the property is sold after your death and the sale proceeds are divided among the remaining ownership interests, you are free to remain rent-free.

Types of Equity Release Schemes

Lifetime mortgages and home reversion plans are the two main categories of equity release plans. Both systems allow you to keep living in your home while releasing equity.

The most popular equity release plan, the lifetime mortgage, entails taking out a loan secured by your house while maintaining complete ownership. Most lifetime mortgages provide a no negative equity guarantee, which states that you’ll never owe more than the home is worth.

To receive a tax-free lump sum or recurring payments, you must sell all or a portion of your home to a provider of home reversion, the second type of equity release. Rent-free occupancy of the house is permitted until your passing, but no appreciation in value will accrue to you.

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.

Equity Release Regulations in Blackpool

Equity release products in Blackpool are subject to regulation by the Financial Conduct Authority (FCA). To ensure that their products are fair and transparent, equity release providers and brokers are required to abide by strict guidelines.

The Equity Release Council (ERC), a trade association for the sector, offers an additional layer of protection for consumers. These include the freedom to live in your home for the rest of your life and the guarantee that you’ll never have any negative equity.

The ERC also advises getting unbiased financial advice from a licenced adviser before signing an equity release agreement. 

They can assist you in comprehending the expense and effects of releasing equity on your current mortgage, your tax situation, and your eligibility for means-tested benefits.

Equity Release in Blackpool

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.

Pros and Cons of Equity Release

Equity release is a significant financial commitment that should be carefully considered, even though it can boost your finances in your later years. Accessing tax-free money locked up in your home without having to move or make recurring payments is one of the main advantages.

There are drawbacks to think about, though. Equity release can reduce your estate’s value, potentially leaving your family with little to inherit. Your tax situation and eligibility for state benefits may also be impacted.

In addition, equity releases may cost more than conventional mortgages due to higher interest rates. The interest is typically rolled up, which means that it accumulates over time and significantly raises the balance owed on the loan.

If you want to repay the loan earlier than agreed, there are occasionally fees associated with early repayment. Therefore, obtaining independent legal counsel and expert equity release advice is imperative before choosing.

Calculating Equity Release in Blackpool

Your property’s market value, age, and physical condition affect how much equity you can release from your home. Generally speaking, the more money you can remove, the older you are.

You can know how much equity you can release using an equity release calculator. For a more precise figure, speaking with a financial advisor is suggested.

Equity Release Tax Implications

The fact that the money you unlock from your home is tax-free, whether you take it as a lump sum or regular payments, is one of the main benefits of equity release. The way you spend the money, though, might impact your taxes.

For instance, you might have to pay income tax if you invest the money released and make money from it. If you give the money to a relative and pass away within seven years, inheritance tax may apply.

Applying for Equity Release

A few steps must be taken to apply for equity release. First, you should consult a knowledgeable equity release adviser who can help you navigate the process and understand any potential effects on your tax situation and benefits.

The equity release product type that best suits your needs and situation must be chosen. A lifetime mortgage or a home reversion plan might be involved. Your advisor will assist you in completing the application and submitting it to the equity release provider once you’ve decided. 

The provider will then make arrangements to have a professional appraise your property. If your application is accepted, the equity release loan will be secured against your property, and your solicitor will walk you through the legal process.

Seeking Professional Advice on Equity Release

Considering equity release’s difficulties and long-term effects, consulting a professional is essential. An experienced equity release adviser can offer objective financial guidance for your needs and circumstances. 

They can assist you in comprehending the benefits and drawbacks, expenses, and potential effects on your tax situation and state benefits.

Before finalising an equity release agreement, you should get independent legal advice in addition to financial advice. You can ensure your interests are protected and gain an understanding of the legal ramifications of the contract from a lawyer.

Securing an Equity Release Loan

Obtaining an equity release loan in Blackpool necessitates taking a few crucial actions. Consult a financial advisor about your financial situation and goals first. This is a vital step because it enables you to comprehend all of your options for equity release and their ramifications.

The next step is to choose an appropriate equity release plan. This could be a home reversion plan or a lifetime mortgage. Your equity release advisor can help you make the best decision by considering your financial requirements and the market value of your property.

Finally, the equity release provider will use your property as collateral for the loan. It’s critical to realise that the lender may seize your home if you cannot comply with the loan’s conditions. 

Therefore, ensure you fully understand the terms before signing any equity release agreements and seek independent legal counsel.

The Role of Mortgage Brokers

In the process of releasing equity, mortgage brokers are crucial. They serve as a liaison between you and the equity release provider, assisting you in selecting the best product for your needs and financial situation.

The various equity release products that are offered, as well as their features and advantages, can be explained by a mortgage broker. Additionally, they can help you comprehend the expenses related to equity release, such as interest rates, legal fees, and advice fees.

Though mortgage brokers can provide information and direction, you should always get independent legal counsel before signing equity release agreements. This guarantees that your interests are safeguarded and that you know all of the loan’s terms and conditions.

Navigating Financial Services Register

The Financial Services Register is a public document that lists information about the businesses, people, and other entities that the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have the authority to regulate. 

Check the Financial Services Register before selecting an equity release provider or adviser. Being listed on the register indicates that a company or person has complied with the regulations’ standards and guidelines, improving consumer protection. 

You should avoid your equity release adviser or provider if they are not on the register because they are operating illegally. 

Remember that even though the Financial Services Register can assist you in confirming the legitimacy of a company or individual, it is still crucial to conduct due diligence and obtain independent advice before making any financial commitments. 

Understanding Early Repayment Charges

Understanding the potential early repayment fee is crucial for an equity release plan. If you choose to pay off your equity release loan before the predetermined term expires, you might be required to pay this fee.

Early repayment fees can significantly impact how much an equity release plan costs. Therefore, before signing an equity release agreement, you must talk with your adviser about the possibility of early repayment penalties and how they would affect your finances.

Consider financial advice when thinking about equity release. You can understand all the costs involved, including the interest rate, legal fees, advice fees, and potential early repayment penalties, with the aid of an excellent financial advisor. 

They can also offer advice on how to minimise or eliminate these expenses.

About Blackpool

On England’s northwest coast, in the county of Lancashire, is the well-known seaside town of Blackpool. It’s a bustling town that draws visitors worldwide thanks to the iconic Blackpool Tower, its white beaches, and the Pleasure Beach amusement park.

The town’s central postcodes range from FY1 to FY4; its telephone area code is 01253. Blackpool is one of the most populated towns in Lancashire, with an estimated population of 139,000.

Blackpool has a long and illustrious past that dates to the Middle Ages. It gained notoriety in the 19th century as a significant tourist hub after a railway line connecting it to Northern England’s industrialised areas was built. 

The town’s famous tower, fashioned after the Eiffel Tower in Paris, debuted in 1894 and has become a popular tourist destination.

In addition to its well-known landmarks, Blackpool is renowned for its illuminations, an annual lights festival from August to November. The festival annually draws hundreds of thousands of visitors and lights up the town’s promenade with vibrant lights.

Despite being a popular tourist destination, Blackpool has a solid sense of community and a thriving local economy. Local businesses, schools, and community centres contribute to the town’s vibrant and energetic atmosphere.

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) Bloomfield

2) Claremont

3) Clifton

4) Greenlands

5) Hawes Side

6) Highfield

7) Ingthorpe

8) Layton

9) Marton

10) Norbreck

11) North Shore

12) Squires Gate

13) Stanley

14) Talbot

15) Victoria

16) Warbreck

17) Waterloo

18) Bispham

19) South Shore

20) Anchorsholme

21) Great Marton

22) Little Marton

23) Marton Moss’s Side

24) Queenstown

25) Revoe

26) St John’s

27) Walker’s Hill

28) Warbreck

29) Whitegate

30) Brunswick

31) Tyldesley.

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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