Equity Release in Ellesmere Port

Equity Release In Ellesmere Port | December 2023

In Ellesmere Port, equity release has grown to be a well-liked financial tactic among homeowners in the North West. 

This idea entails taking equity out of your house and converting your asset’s value into a one-time or ongoing payment to supplement your income. 

Table of Contents

Understanding Equity Release

The term “equity release” describes several products that let you withdraw money from your home’s equity while residing there. Home reversion plans and lifetime mortgages are the two main types of equity release. 

A home reversion plan entails selling all or a portion of your home, whereas a lifetime mortgage is a loan secured by your house. Most equity releases take the form of lifetime mortgages. 

With this product, you can take out a loan against the value of your home and repay it along with any rolled-up interest when you sell it. 

The ‘no negative equity guarantee’, which ensures that you’ll never owe more than the value of your home, is the main component of most lifetime mortgages.

On the other hand, a home reversion plan entails selling all or a portion of your home to a reversion business in exchange for a tax-free lump sum or ongoing payments. You can still live there until you pass away or enter long-term care. 

Eligibility Criteria for Equity Release

Several factors determine whether a person is eligible for equity-release products. For a lifetime mortgage, you must first be at least 55 years old; for a home reversion plan, you must be at least 65. 

Additionally, your property must be in good condition and worth a certain amount, typically at least £70,000. We will also consider any secured loans you may have and your current mortgage. 

These need to be paid off concurrently with obtaining the equity release plan with saved or released money. 

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.

Types of Equity Release in Ellesmere Port

Several equity release products are available in Ellesmere Port, each with unique features and advantages. Some lifetime mortgages, for instance, allow for flexible features like the capacity for recurring payments to control the accumulation of interest. 

Alternatively, you might decide on an interest-only mortgage, taking out a lump sum loan and paying interest on it monthly. Since your debt does not grow over time, this kind of equity release enables you to lower the overall cost.

Equity Release in Ellesmere Port

Some of the best equity release interest rates as at December 2023

The table below shows you some of the best equity release rates, as at December 2023, for lifetime mortgages, from some of the leading equity release providers in the UK. 

These rates may have changed since this table was updated and should be taken as indicative only. There may also be other providers not listed on this table that could offer better deals.  In addition, the providers and products noted below may not be right for your particular circumstances. 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 are applicable to you.

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Product NameInterest RateType of productOffers
Just For You – J2.56.22%FixedFree ValuationNo application fee
Just For You – J16.30%FixedFree ValuationNo application fee
Premier Flexible Pearl6.43%FixedFree Valuation
Premier Optional Payment Pearl6.43%FixedFree Valuation
Horizon 240 Drawdown6.43%FixedFree Valuation
Classic Drawdown Super Lite 26.47%FixedFree Valuation
Horizon 260 Drawdown6.47%FixedFree Valuation
Classic Elite Drawdown Super Lite 26.47%FixedFree Valuation
Premier Flexible Pearl6.48%FixedFree Valuation
Premier Optional Payment Pearl6.48%FixedFree Valuation
Horizon 240 Drawdown Fee Free6.49%FixedFree ValuationNo application fee
Classic Drawdown Super Lite 16.52%FixedFree ValuationNo application fee
Premier Flexible Pearl6.52%FixedFree Valuation
Premier Optional Payment Pearl6.52%FixedFree Valuation
Classic Elite Drawdown Super Lite 16.52%FixedFree ValuationNo application fee
Flexible Pearl6.53%FixedFree Valuation
Optional Payment Pearl6.53%FixedFree Valuation
Enhanced Lifestyle Flexible Option6.53%FixedFree ValuationNo application fee
Horizon 260 Drawdown Fee Free6.55%FixedFree ValuationNo application fee

The equity release rates have been sourced from Equity Release Supermarket. These indicative rates and incentives may have changed since this article was last updated. 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. We recommend that you speak to an equity release advisor to see what the best options are for you.

If you take out a product with Age Partnership, we will receive a fee for introducing you to them. By contacting Age Partnership through us, the cost of any equity release product would be the same as if you had contacted them directly.  The fee we received is used to help keep our site operational and to produce new content.  

Process of Equity Release

Seeking professional equity release advice from a financial adviser is the first step in releasing equity in Ellesmere Port.

They will assist you in comprehending the various products, the associated costs of equity release, and whether it is the best choice for you. 

The next step would be to estimate how much equity you could release using an equity release calculator. This depends on your age, the value of your home, and the size of any outstanding mortgages. 

After that, pick an equity release company and a plan that works for you. Your advisor can assist you in weighing your options and determining whether the program has the approval of the Equity Release Council. 

This organisation guarantees that the goods are secure and suitable for customers. 

After selecting a plan, you must apply to your advisor. The provider will then coordinate a property valuation and determine your eligibility. 

After accepting your application, you will receive a legally binding equity release agreement; carefully read it before signing.

Benefits and Risks of Equity Release 

The release of your home’s equity has several advantages. You could receive a tax-free lump sum or regular income from it, which you could use for anything from home renovations to pension supplementation. 

Equity release involves a significant financial commitment and some risks. For example, it might not be the best choice if you want to leave a sizable inheritance because the amount you owe can rise quickly due to compound interest. 

Your tax situation and eligibility for means-tested benefits may also be impacted.

Financial Advice on Equity Release

When thinking about equity release, seeking unbiased financial advice is critical. A licenced financial advisor can offer professional equity release advice, assisting you in determining whether it’s the best course of action. 

They can describe the various forms of equity release, the associated costs, and the possible effects on your tax and benefits.

Legal Implications of Equity Release

Additionally, equity release has legal ramifications. It’s imperative to get independent legal counsel before committing.

The legal advisor will review the agreement’s specifics to ensure you fully understand your responsibilities and how the choice will affect your estate.

Alternatives to Equity Release

It’s essential to weigh your options before choosing an equity release. These options include moving into a smaller home, taking in a lodger, or enlisting the assistance of family members. Consider other borrowing options, like a credit card or personal loan. 

You can explore all of your options with an unbiased financial advisor. Many Ellesmere Port homeowners may find equity release a financially advantageous option with the proper guidance and careful thought. 

Before making a choice, it’s crucial to fully comprehend the procedure, the expenses, and the potential risks.

Equity Release Mortgages and Repayments

In Ellesmere Port, equity release mortgages, particularly lifetime mortgages, are standard. These mortgages enable property owners to borrow a portion of the value of their homes. 

Most lifetime mortgages offer fixed interest rates for security; however, interest rates can also be variable. The loan and interest are paid back when the homeowner passes away or enters a nursing home.

With equity-release mortgages, you are not required to make monthly payments, but some products allow you to pay interest, which lowers the overall cost. However, early repayment fees might be assessed if you repay the loan early. 

Before committing, it’s crucial to comprehend these conditions. Equity release mortgages require a significant outlay of cash. As a result, it is advised to consult financial advisors who can thoroughly explain the procedure. 

They will review the interest rates, the amount of equity you can release, and any potential effects on your tax situation.

Protecting Your Rights with Equity Release

The Financial Conduct Authority (FCA) oversees equity release and ensures that advisers and providers adhere to strict guidelines to safeguard clients. 

The no negative equity guarantee, which ensures you’ll never owe more than your home’s market value, is a crucial component of this protection.

The Equity Release Council is another organisation that upholds high standards for its members to safeguard homeowners’ rights. 

For instance, they promise you can remain home for the rest of your days or until you enter long-term care. As a result, you should always confirm that the equity release provider is a council member.

Before signing an equity release agreement, consider getting independent legal advice. The terms and conditions, including early repayment penalties, legal fees, and advice fees, can be better understood with the assistance of legal counsel.

Utilising Equity Release Calculators

Online calculators for equity release can help you estimate how much equity you have in your home. Enter information about your age, property value, and outstanding debt. 

Remember that your age and the market value of your property significantly impact the amount of equity you can release. In general, the more money you can remove, the older you are and the higher the market value of your home.

A calculator for equity release, however, only offers an estimate. Consider speaking with a financial advisor for a more precise estimate and personalised advice.

They can help you with every step, from figuring out how much equity you can release to picking the best option. 

Home Reversion Plans 

An additional category of equity release products is home conversion plans. Home reversion plans entail selling all or a portion of your property to a reversion company, unlike lifetime mortgages. You can live on your property and receive a lump sum or recurring payments.

Compared to a lifetime mortgage, a home reversion plan allows you to access a more significant portion of the value of your property. It’s important to remember that you will not get the total market value of the property. 

Consider seeking unbiased financial advice before choosing a home reversion plan. Consider the effect on your tax situation and eligibility for means-tested benefits. 

Alternatives to Equity Release

Think about other options before deciding to release equity from your house. You could move into a smaller home or use your savings to repay your mortgage. Consider borrowing from family or buying a lodger if you need extra cash.

Free advice is available from organisations like StepChange Financial Solutions if you’re having debt problems. They can help you explore other options for managing your finances and offer debt advice.

Again, before making any decisions, you should seek financial advice. Financial advisors can give you a thorough overview of all your options, empowering you to choose the course of action that best suits your needs.

About Ellesmere Port

Cheshire’s thriving town of Ellesmere Port is in the North West of England. It is renowned for its lengthy history and strong industrial foundations, particularly for playing a crucial part in creating the UK’s canal system. 

The city’s primary postcode areas are CH65 and CH66, served by the telephone area code 0151. The National Waterways Museum, a fascinating homage to the town’s maritime past, is what Ellesmere Port is best known for. 

Visitors can glimpse the town’s past when it was a thriving port at the museum, located at the intersection of the Manchester Ship Canal and the Shropshire Union Canal.

The Cheshire Oaks Designer Outlet, the largest outlet shopping complex in the UK, is another attraction in Ellesmere Port. Cheshire Oaks, home to over 145 shops, eateries, and cafes, is a must-go place for shoppers.

The Vauxhall Motors automobile factory, one of the region’s largest employers, is located in Ellesmere Port. The factory, founded in the 1960s, has a lengthy history and is essential to the local economy.

Ellesmere Port has excellent rail and road connections for transport, making it a convenient location for commuters. The town is desirable to live and work because of its strategic location, rich history, and active community.

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) Little Sutton

2) Great Sutton

3) Overpool

4) Whitby

5) Wolverham

6) Stanney Oaks

7) Rossmore

8) Netherpool

9) Childer Thornton

10) Hooton

11) South Wirral

12) Ledsham

13) Capenhurst

14) Backford

15) Dunkirk

16) Stock

17) Wervin

18) Mollington

19) Saughall

20) Blacon

21) Upton

22) Chester

23) Guilden Sutton

24) Mickle Trafford

25) Dunham-on-the-Hill

26) Helsby

27) Frodsham

28) Runcorn

29) Bebington

30) Bromborough.

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

Financial Promotions Sign-off

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.

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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.

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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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