Equity Release in Milton Keynes

Equity Release In Milton Keynes | March 2024

Homeowners seeking to access the value of their property can find a practical financial solution in Milton Keynes with equity release.

It is a procedure that enables you to release equity held in your home, providing a means of raising your retirement income without having to relocate. 

Your circumstances will determine which equity release product you select, but you can make an informed choice with professional equity release advice.

Table of Contents

Understanding Equity Release

While residing in your home, equity release allows you to access some of its value. The most common equity release plans are lifetime mortgages and home reversion plans. It’s vital to comprehend how each functions. 

A lifetime mortgage is a loan secured by your home and deferred until your death or admission to long-term care. Usually, interest rates are fixed, or if they are variable, a “cap” (upper limit) is set for the duration of the loan if they are. 

This gives you peace of mind because of the guarantee against negative equity, which prevents you from ever having to pay back more than the value of your home. 

On the other hand, a home reversion plan entails selling a portion of your home to a lender in exchange for a one-time payment or ongoing payments.

You are entitled to an amount of any appreciation in the value of your home, but you can stay there rent-free until you pass away. 

Types of Equity Release Schemes

Lifetime mortgages and home reversion plans are the two available equity release options. Every equity release product is made to accommodate various financial needs. The most popular equity release plan is a lifetime mortgage. 

By doing this, you obtain a mortgage secured by your home while maintaining ownership. When you pass away or enter long-term care, the loan balance and any accumulated interest are paid off. You can choose to make payments or let the interest get.

On the other hand, home reversion plans entail offering all or a portion of your property to a home reversion plan provider in exchange for a one-time payment or ongoing payments. 

Rent-free occupancy of the property is permitted until your death, but you must agree to keep it up and insure it.

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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Eligibility for Equity Release

You must meet specific requirements to be eligible for an equity release plan. To begin with, you must be at least 55 years old, though some providers may have a minimum age requirement of 60 or 65. Your home must be in good condition and serve as your primary residence. 

In addition, you usually need to pay off any existing mortgages or secured loans on your property first.

Equity release might only be appropriate for some, so carefully weigh your alternatives. Before moving forward, it is advised to get unbiased financial advice from a licensed equity release adviser.

Equity Release in Milton Keynes

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.

Equity Release Process in Milton Keynes

There are several steps in Milton Keynes’ equity release procedure. You must first consult a financial advisor who specialises in equity release. 

They will be able to give you knowledgeable equity release advice and assist you in determining whether it is the best option for your situation.

Next, decide whether a lifetime mortgage or a home reversion plan is the equity release plan type that best suits your needs. The advantages and risks of each option can be explained to you by your advisor.

Once you’ve decided on a course of action, a Milton Keynes-based lawyer will offer you unbiased legal counsel so that you are fully aware of all the terms and conditions before moving forward. 

After that, your home will be independently valued to determine how much equity you can release. Once you’ve finished all these steps, you can move on to the last stage, removing the funds from your home. You can choose to get a one-time tax-free payment or ongoing payments. 

Advantages and Risks of Equity Release

Equity release may be advantageous in many ways. It allows you to access tax-free money stored in your property without leaving. You can use these funds however you like, whether to improve your home, pay for loved ones’ expenses, or supplement your pension.

However, equity release requires a sizable financial outlay, so it’s critical to comprehend the risks. Your tax situation and eligibility for means-tested benefits may be impacted. 

You can also leave your loved ones with less of an inheritance. You could rise as a result of a lifetime mortgage’s compounded interest.

Impact on Inheritance and Benefits

When thinking about equity release, many people prioritise how it will affect the value of their estate and the inheritance they leave behind. Equity release could result in your loved ones receiving a meagre inheritance because it lowers the value of your estate.

Your eligibility for means-tested state benefits may also be affected by equity release. Your benefits may be impacted if you release more money than £10,000 in addition to other savings.

Seeking Professional Advice in Milton Keynes

Getting expert guidance from a Milton Keynes financial adviser is critical before making an equity release decision. You can better understand the advantages and risks by working with an advisor. 

They will also advise you on safeguarding a portion of your property for potential heirs and ensure that your plan doesn’t violate any negative equity guarantees.

Alternatives to Equity Release

Although equity release may seem appealing, it’s essential to consider other options. Moving into a smaller or less expensive home can be a good alternative.

As a result, you could leave a larger inheritance for your loved ones and be able to take the remaining equity as a lump sum.

Another choice might be renting a room or taking in a lodger, which could earn you extra money. In addition, you can use your savings, investments, or other assets to increase your retirement income by claiming any benefits to which you are entitled.

Choosing to use equity release in Milton Keynes is significant. Consult an expert before deciding if it’s the best action for you.

Exploring Equity Release Costs

The equity release price in Milton Keynes can vary considerably depending on the equity release product and the provider you choose. 

Typically, there are several costs to consider, such as an advice fee for the financial advice you receive and legal costs associated with your solicitor’s work. 

Suppose you choose to pay off the loan early. In that case, a lender’s arrangement fee, a fee for the valuation, and possibly early repayment penalties are all ordinary expenses associated with equity-release mortgages. 

There might also be a completion fee for some plans. When considering the overall affordability of an equity release plan, it’s critical to consider these costs.

Always keep in mind that the offer’s interest rate isn’t everything. Another vital factor to consider is the total cost of equity release. To fully grasp the total cost throughout the loan, discuss this with your Milton Keynes mortgage advisor.

Role of the Equity Release Council

The Equity Release Council, a trade organisation, represents the UK’s equity release industry. It strives to guarantee consumer safety and dependability for all equity-release products. 

The Council assures those thinking about equity release by establishing high standards for its members. The guarantee of no negative equity is one crucial standard. 

This guarantee ensures that, even if home prices decline, you will never owe more on your mortgage than the house is worth when sold. It’s an essential component that protects against negative equity.

Including “fixed interest rates for life on lifetime mortgages” is another requirement the Council sets. As a result, homeowners will have certainty regarding the interest rates on these equity release products for the duration of the loan.

Legal and Financial Support in Milton Keynes 

Getting unbiased, independent legal counsel is essential when thinking about equity release. You can determine if equity release is a good choice for your financial situation with the assistance of a financial advisor. 

Additionally, they can inform you of all the equity release options and aid in provider comparison.

Numerous professional advisers with expertise in equity release can be found in Milton Keynes. Through the process, they can help you make decisions that align with your financial objectives.

Legal counsel is also crucial. You can get a lawyer’s assistance in understanding the legal ramifications of the equity release agreement. They ensure your equity release plan is in your best interest while defending your rights. 

Regulated Equity Release in the UK

Equity release providers and products are governed by the Financial Conduct Authority in the UK. This regulation further protects the consumers. It ensures that all equity release consultants, mortgage brokers, and lenders abide by rigid rules and regulations.

Numerous providers are members of the Equity Release Council in addition to the FCA regulation. 

This membership demonstrates its commitment to upholding the Council’s Statement of Principles, which offers additional protections and guarantees for homeowners who release equity. 

You must confirm that the provider, adviser, or broker you are working with is FCA-regulated and, if possible, a member of the Equity Release Council before moving forward with equity release in Milton Keynes. 

Homeowners benefit from an added sense of security from this dual layer of regulation and membership.

Equity Release and Retirement Planning

Regarding retirement planning, equity release can be helpful, especially for those who own a home but have little liquid assets. It can supplement your pension income, make home improvements, or for other things like long-term care or helping loved ones.

Equity release can affect your tax situation and eligibility for means-tested benefits. Before moving forward, discussing these implications with a financial advisor or mortgage adviser is always advisable.

Equity release is inappropriate for everyone, so weighing your options before deciding is crucial. Always get expert advice, comprehend all costs, and pick a regulated equity release product that works for you.

About Milton Keynes

The South East of England is home to the thriving and diverse town of Milton Keynes. It is located in Buckinghamshire and is well-known for its grid-styled roads and modernist architecture.

The city is known for its extensive parklands and green spaces, which comprise about 25% of the total area. Milton Keynes’s phone area code is 01908. 

It covers a large portion of the MK1 to MK15 main postcode area, with the town’s most populous and central parts surrounded by MK9 and MK10.

Milton Keynes is exceptional for having more than 220 public artworks dispersed throughout the city. Additionally, it has a long history of Roman and Anglo-Saxon occupation, which includes a wealth of historical sites and artefacts.

The town is also well-known for its entertainment options, including the National Bowl and MK Theatre, and its shopping district, one of the biggest in the UK. 

The renowned Bletchley Park, the central hub for Allied code-breaking during the Second World War, is located in Milton Keynes.

Due to its excellent transport connections to London and other major cities, the town is well-liked by commuters. The Red Bull Racing Formula One team and a round of the FIA World Rallycross Championship are located there, making it a centre for motorsports.

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) Bletchley

2) Newport Pagnell

3) Woburn Sands

4) Wavendon

5) Stony Stratford

6) Wolverton

7) Olney

8) Bradwell

9) Shenley Brook End

10) Loughton

11) Simpson

12) Broughton

13) Walton

14) Monkston

15) Oakgrove

Here is a list of towns, villages, and boroughs within 10 miles of Milton Keynes:

1) Northampton

2) Bedford

3) Aylesbury

4) Luton

5) Dunstable

6) Wellingborough

7) Kettering

8) Hitchin

9) Stevenage

10) Leighton Buzzard

11) Buckingham

12) Flitwick

13) Ampthill

14) Rushden

15) Towcester.

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.

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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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