Equity Release in Newcastle

Equity Release In Newcastle | March 2024

Homeowners in Newcastle are using equity release as a financial tactic to unlock the value of their property that has been locked away. This procedure entails working with an equity release advisor to obtain a lifetime mortgage or a home reversion plan. 

Homeowners won’t have to leave their homes for a tax-free cash lump sum or ongoing payments.

Table of Contents

Understanding Equity Release

If you are over 55, equity release refers to various products that enable you to access the equity (cash) locked up in your home. The money you release can be received in one large sum, several smaller ones, or a combination of both. 

Lifetime mortgages and home reversion plans are the two equity release options. The Financial Conduct Authority governs both of these.

Using these products, you can sell a portion or all of your home for a regular monthly income, a tax-free lump sum, or both, or you can borrow money against the value of your home. An efficient way to finance your later years is with an equity release product. 

However, as with all financial products, you must seek professional advice before deciding if equity release suits you. Financial advisors can offer unbiased advice, assisting you in comprehending the benefits and risks.

Newcastle’s Equity Release Market

Newcastle’s equity release market has been expanding. Many homeowners in the city have amassed sizable home equity thanks to the city’s thriving real estate market.

Homeowners can access this wealth through various equity release products offered by providers like the Newcastle Building Society. However, releasing equity from your house can be a complex process. 

Understanding the different kinds of equity releases, their costs, and their potential effects on your tax situation and eligibility for state benefits is essential. 

It’s also crucial to consider how an equity release plan will impact the value of your estate and the inheritance your family will receive.

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 for Equity Release

You must own your home, make it your primary residence, and be at least 55 to qualify for equity release in Newcastle. The property needs to be in good shape, over a specific price range, and you need to either own it outright or have a mortgage to pay off. 

Your ability to borrow will depend on your age, health, and property value. Most lifetime mortgages don’t require monthly payments because the loan and rolled-up interest are paid off when the plan ends. 

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.

Types of Equity Release Schemes

Home reversion plans and lifetime mortgages are the two main types of equity release. If your home is your primary residence, a lifetime mortgage entails borrowing money against it while maintaining ownership. 

You have the option of making payments or letting the interest accumulate. The loan balance and any accrued interest must be repaid when you pass away or enter long-term care.

In contrast, a home reversion plan entails part or whole property sale to a home reversion provider in exchange for a one-time or ongoing payment. You can stay in the home until you pass away, but only if you agree to keep it maintained and insured. 

When the plan is complete, your property is sold, and the proceeds are divided among the remaining ownership interests.

Choosing Your Equity Release Plan

When considering an equity release plan, seeking equity release advice from qualified financial advisers is essential. You can better understand the various equity release products offered and the potential risks and benefits with an equity release adviser. 

Additionally, they can assist you in navigating the equity release costs, which may include advice, legal, and possibly early repayment fees. All equity release products must adhere to strict standards, which the industry’s trade organisation enforces, the equity release council. 

You’ll never owe more than the value of your home thanks to a “no negative equity guarantee” included in this. Additionally, many equity release companies provide a negative equity guarantee, which can shield you from any housing market downturn.

It’s also important to remember that most lifetime mortgages have fixed interest rates, guaranteeing that your payment won’t rise over time. 

It’s important to realise that interest rates can differ between various equity release providers. Consider using an equity release calculator to determine how much you could release.

Legal Considerations of Equity Release

Independent legal counsel must be obtained before signing an equity release agreement. You can get assistance from a lawyer in understanding the conditions of the equity release product. 

They can also assist you in understanding how an equity release plan may impact your inheritance and estate planning, as well as the value of your property.

It’s also important to consider how equity release might affect your tax situation. Although the money is released tax-free, it might affect your ability to receive means-tested benefits. Remember that the amount left for your estate will decrease as you remove more.

Equity Release and Your Inheritance

The effect on your inheritance is a crucial factor to consider when releasing equity from your home. A loan and any accumulated interest with an equity release mortgage are paid back from your estate when you pass away or enter long-term care. 

This implies that your estate’s value will decline, impacting the inheritance you leave behind.

However, some equity release products provide a guarantee for inheritance protection. This enables you to ring-fence a portion of the value of your property for inheritance purposes. 

It’s crucial to discuss this with your advisor on equity release and consider it when making financial plans.

Finding the Right Equity Release Advisor

Navigating the market requires finding a reliable equity release advisor. To ensure they abide by a strict code of conduct, look for advisors who are members of the equity release council. 

This includes a promise to guarantee that you will never owe more on your mortgage than the value of your home. 

Additionally, seek advice from businesses like StepChange Financial Solutions or Age Partnership, which provide financial services like debt counselling and retirement mortgages. Doing this will ensure that your choice will meet your financial needs over the long term.

Last but not least, be sure to verify the advisor’s credentials. For them to adhere to strict standards of professionalism and ethics, the Financial Conduct Authority should authorise and oversee them.

About Newcastle

Newcastle, formerly known as Newcastle upon Tyne, is a thriving city in the Tyne and Wear county in the North East of England. It is well known for its extensive history, iconic architecture, and vibrant culture. 

The city’s area code is 0191, which includes the postcode ranges NE1 to NE7 and NE12 to NE30. The Tyne Bridge, a striking representation of Newcastle’s industrial past, is one of the city’s most well-known landmarks. 

Newcastle University, one of the top universities in the UK and a magnet for students from around the world, is also located in the city. Newcastle is renowned for its vibrant football culture: Newcastle United’s home stadium, St. 

James’ Park frequently hums with the enthusiasm of tens of thousands of devoted supporters. The city’s thriving nightlife and abundance of bars, clubs, and music venues also contribute to its appeal. Newcastle has a long history in the performing arts and music. 

Annual performances at the Newcastle Theatre Royal and O2 Academy range from classical ballet to music concerts. The city’s vibrant art scene is also visible in many galleries, including the renowned BALTIC Centre for Contemporary Art.

Newcastle has good transport options. Direct rail connections to major UK cities are available from Newcastle Central Station, and the Tyne and Wear Metro provides extensive coverage throughout the city and the surrounding area. 

The city is easily reachable anywhere with a domestic and international airport like Newcastle International Airport.

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) Benwell and Scotswood

2) Byker

3) Castle

4) Dene and South Gosforth

5) Denton and Westerhope

6) Elswick

7) Fawdon and West Gosforth

8) Gosforth

9) Heaton

10) Jesmond

11) Kenton

12) Kingston Park South and Newbiggin Hall

13) Lemington

14) Monument

15) North Jesmond

16) Ouseburn

17) Parklands

18) South Jesmond

19) Walker

20) Walkergate

21) West Fenham

22) Wingrove

23) Woolsington

Here are towns, villages, and boroughs within 10 miles of Newcastle:

1) Gateshead

2) Wallsend

3) North Shields

4) Jarrow

5) South Shields

6) Whitley Bay

7) Washington

8) Sunderland

9) Chester-Le-Street

10) Houghton-Le-Spring

11) Seaham

12) Cramlington

13) Blyth

14) Whickham

15) Blaydon-On-Tyne

16) Ryton

17) Rowlands Gill

18) Prudhoe

19) Newburn

20) Ponteland.

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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