Equity Release in Bournemouth

Equity Release In Bournemouth | April 2024

For homeowners 55 and older in Bournemouth, equity release offers a financial solution that enables them to access the value of their home while still residing there. It’s a way to access equity in your home without selling it, offering either a lump sum or ongoing payments.

Table of Contents

Understanding Equity Release

A financial product called equity release enables Bournemouth property owners to access the value of their home without having to sell it. Home reversion plans and lifetime mortgages are the two main types of equity release. 

A lifetime mortgage is a loan secured by your home and deferred until your death or admission to long-term care. The loan and any interest owed are repaid when the property is sold. 

To receive a lump sum or ongoing payments, you must sell all or a portion of your property to a home reversion provider. 

Until your death, you are allowed to live there without paying rent. After that, the house is sold, and the proceeds are split among the remaining owners according to their percentage of ownership.

Over time, you can get the money with an equity release mortgage in one lump sum or in smaller amounts. 

The age and value of your house influence your ability to borrow money. Before deciding to release equity from your home, getting professional advice from a financial adviser is crucial. 

Benefits of Equity Release

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

You can either receive a lump sum of the money you release or regular tax-free payments. 

Homeowners who use equity release may be able to maintain their current lifestyle while gaining access to their property’s value. 

The most common form of equity release, a lifetime mortgage, allows for no monthly repayments, making it a desirable choice for people without an existing mortgage. The ‘no negative equity guarantee’ is another benefit of equity release. 

As a result, your debt will never exceed the value of your home, and your estate won’t inherit any debt. Those who might not be eligible for other mortgages or loans due to their age or income may still have a choice with equity release. 

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.

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Risks Involved in Equity Release

Even though equity release can grant financial independence, it’s crucial to comprehend the risks involved. It can lower the value of your estate and the amount you can leave to your heirs, which is one of the main risks. 

Your tax situation and eligibility for means-tested benefits may be impacted by equity release. Thus, it is essential to seek independent legal counsel and consult with a financial advisor before making a choice. 

If you pay off the lifetime mortgage earlier than planned, early repayment penalties might be imposed. Comprehending the equity release agreement’s terms is crucial because this could be a sizeable expense. 

Equity release products may have higher interest rates than typical mortgages, and since interest is frequently rolled up, your overall debt may rise. 

Equity Release in Bournemouth

Some of the Best Equity Release Interest Rates as of 28 March 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
Standard LifeHorizon 200 Drawdown5.37%FixedFree Valuation
Standard LifeHorizon 220 Drawdown5.38%FixedFree Valuation
JustJust For You – J2 Green5.40%FixedFree Valuation
No application fee
Standard LifeHorizon 240 Drawdown5.40%FixedFree Valuation
Standard LifeHorizon 200 Drawdown Fee Free5.41%FixedFree Valuation
No application fee
JustJust For You – J15.45%FixedFree Valuation
No application fee
Standard LifeHorizon 240 Drawdown Fee Free5.45%FixedFree Valuation
No application fee
Standard LifeHorizon 260 Drawdown5.45%FixedFree Valuation
Scottish WidowsFR15.50%FixedCashback
Free 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.

Equity Release Process in Bournemouth

There are several steps in Bournemouth’s equity release procedure. You must consult an equity release advisor who can outline your options and potential risks. They can also give you access to an equity release calculator to calculate how much you could release. 

Your adviser will assist you in selecting the ideal product and provider once you have decided to move forward with equity release. The equity release provider will then arrange a property valuation to determine how much you can borrow.

The next step involves hiring a solicitor to handle the legal aspects, which is the legal work. The equity release provider will make a formal offer after the legal process. The money is released in a lump sum or as ongoing payments depending on your chosen equity release product.

Choosing an Equity Release Provider

It’s essential to consider several factors when selecting an equity release provider in Bournemouth. 

These factors include the company’s standing, the interest rates provided, and whether or not they are affiliated with the Equity Release Council, ensuring that all of their products adhere to strict guidelines. 

Your equity release advisor can assist you in comparing various providers and products to determine which best suits your requirements and situation. Making a well-informed decision is essential because equity release is a significant financial commitment.

Legal Aspects of Equity Release

Since equity release involves legal contracts, getting impartial legal counsel is crucial before moving forward. Your attorney will ensure you comprehend the contract’s terms, including your rights and obligations. 

The solicitor will also communicate with the equity release provider’s attorney to finish the required legal work. This entails verifying the ownership of the property, making plans to sign the equity release agreement, and ensuring the money is released correctly. 

Realising that a lifetime mortgage keeps the property in your name is crucial. In contrast, a home reversion plan transfers ownership of the property or a portion of it to the reversion company.

Impact on Inheritance and Taxation

The value of your estate and the inheritance you can leave to your loved ones may be impacted by equity release. The amount that can be left as an inheritance decreases as your home’s equity is released and used. Tax considerations may also apply to equity release. 

The money released is tax-free, but if it is invested and earns income or raises the value of your estate above the inheritance tax threshold, it may impact your tax situation. Talking about these issues with your attorney and financial advisor is crucial.

Alternatives to Equity Release

Take into account other options before choosing equity release. These involve moving into a smaller home, taking in a lodger, or looking into additional borrowing options like a conventional mortgage or loan. 

There may also be grants from local governments and state benefits available to assist with some expenses. Sharing your plans with your family is also a good idea, as they can help or be impacted by your choice.

Remember that equity release is not the only way to access money in later life; therefore, it is crucial to consider all your options before making a choice.

Assessing the Cost of Equity Release

The price of equity release can vary depending on the provider and selected product type. 

In addition to legal fees for the work of the solicitor and possible valuation fees for determining the market value of your property, these expenses may also include advice fees for the financial advice you received. 

The equity release provider may also assess the product’s set-up or arrangement fee. If you pay off the mortgage earlier than expected, there might also be early repayment fees. Before moving forward, reviewing all of these potential costs with your equity release adviser is essential. 

Equity release product interest rates may also impact the overall cost. Other products have variable interest rates, while others have fixed interest rates. 

Understanding how this works is crucial because the interest rate significantly impacts the equity release’s overall cost.

Maintaining Your Lifestyle with Equity Release

Equity release can provide additional funding to maintain your standard of living and supplement retirement income. The lump sum or recurring payments can be used for various things, such as vacations, home improvements, or paying off an existing mortgage. 

But it’s crucial to consider everything, including how it might affect your tax situation and state benefits. Your income or savings may be impacted if your equity release causes an increase in both. 

It’s essential to take your long-term financial planning into account as well. Equity release lowers your estate’s value, which may impact your plans for leaving an inheritance. 

Ensuring Equity Release Safety

It is crucial to ensure the security of equity-release products. The ‘no negative equity guarantee’ is one method for achieving this. By guaranteeing that your debt will never exceed the value of your home, you are prevented from experiencing negative equity. 

All members of the Equity Release Council, a trade organisation for the sector, must include this guarantee in their goods. By doing this, consumers are further protected, and equity release is secured. 

The Financial Conduct Authority regulates equity release providers, ensuring they adhere to strict guidelines and give accurate, truthful information. This regulatory oversight further reassures those thinking about equity release.  

Consulting with StepChange Financial Solutions

It is advisable to get unbiased financial advice before choosing equity release. Organisations like StepChange Financial Solutions can help you through the process and offer professional equity release advice. 

They offer details on the various forms of equity release, aid in comprehending the risks and advantages, and provide an equity release calculator to determine how much you could release. 

You can get the knowledge and resources you need to decide whether equity release suits you by consulting with financial advisors like StepChange. 

Equity Release and Property Value

The amount you can release through equity release is primarily based on your property’s value and age. The more money you can remove, the higher your home’s market value should be. 

It’s crucial to remember that equity release might not give you access to your property’s full market value. In general, you can borrow a portion of the rising importance of your house as you get older. 

It’s also important to remember that if property values decline, your home’s remaining equity may be impacted. Another justification for the importance of seeking professional equity release advice is this. 

Equity Release and the Prudential Regulation Authority

Banks, building societies, credit unions, insurers, and sizable investment firms are all subject to prudential regulation and supervision by the Prudential Regulation Authority (PRA). They establish expectations for these businesses and hold them responsible if they don’t live up to them. 

Equity release companies are governed by the PRA, giving customers additional security. The PRA ensures that businesses have sufficient financial resources and good management techniques, increasing the general safety of equity release products. 

When homeowners want to unlock the value of their homes, equity release can be a safe and practical option thanks to regulatory oversight and standards established by the Equity Release Council.

About Bournemouth

On England’s south coast, Bournemouth is a lively and bustling coastal town renowned for its stunning sand beaches and Victorian architecture. It is the biggest town in the area and is located in the county of Dorset. 

The primary postcode areas in Bournemouth, which serve several city districts, are BH1 to BH11 and have the area code 01202. The stunning Bournemouth Beach, one of the best in the UK, is in Bournemouth, a town renowned for its natural beauty. 

The Lower and Central Gardens, two exquisite gardens in the town, provide a tranquil haven in the city’s centre. The numerous landmarks and listed buildings in Bournemouth prove its lengthy history. 

The grand Victorian villa that houses the Russell-Cotes Art Gallery & Museum provides a window into the town’s rich historical and cultural heritage. 

The Bournemouth Symphony Orchestra, one of the best orchestras in the nation, is based in Bournemouth, contributing to the town’s vibrant cultural scene.

With the Castlepoint Shopping Park, the largest retail park in the UK, and various eateries, bars, and clubs, the town provides excellent dining, shopping, and entertainment options. 

The Bournemouth Air Festival and the Bournemouth Arts by the Sea Festival are just two annual events and festivals that Bournemouth hosts.

Because of Bournemouth’s superior transport options, which include a significant train station and efficient road connections, it is simple to reach from other regions of the nation. 

Bournemouth is a desirable place to live and travel because of its amenities, location, and attractions.

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) Boscombe

2) Southbourne

3) Westbourne

4) Winton

5) Charminster

6) Kinson

7) Moordown

8) Pokesdown

9) Redhill

10) Throop

11) Wallisdown

12) Wick

And here is a list of towns, villages, and boroughs within 10 miles of Bournemouth:

1) Poole

2) Christchurch

3) Branksome

4) Canford Cliffs

5) Ferndown

6) New Milton

7) Ringwood

8) Lymington

9) Wimborne Minster

10) Brockenhurst

11) Lyndhurst

12) Fordingbridge

13) Verwood

14) Swanage

15) Wareham

16) Burley

17) Milford on Sea

18) Sway

19) Freshwater

20) Lilliput

21) Sandbanks

22) Canford Magna

23) Corfe Mullen

24) Broadstone

25) Parkstone

26) Hamworthy

27) Upton

28) Lytchett Matravers

29) Lytchett Minster

30) Highcliffe

31) Mudeford

32) Hurn

33) Burton

34) Walkford

35) Ashley

36) Bransgore

37) Sopley.

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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