Equity Release in Ormskirk

Equity Release In Ormskirk | April 2024

Homeowners in Ormskirk who want to unlock the value of their homes are turning to equity release as a popular financial strategy. 

This method of releasing equity is secure and valuable for funding home improvements, retirement income supplements, or even maintaining a comfortable lifestyle without selling your home. 

Let’s delve into the world of equity release, look at the different kinds of plans offered in Ormskirk, and talk about the advantages and disadvantages of this financial instrument.

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. You can receive the money you release simultaneously, in a series of smaller payments or a combination. 

Home reversion and lifetime mortgages are the two ways to release equity. The first option is a loan secured by your house, whereas the second one entails selling all or a portion of it. You can keep your home and receive tax-free money with either of these options. 

The most popular equity release product is a lifetime mortgage. With this product, you can keep ownership of your primary residence while taking out a mortgage. 

You can make payments or allow the interest to accrue, or you can ring-fence a portion of the value of your property as an inheritance for your family. 

When you pass away or enter long-term care, the loan balance and any accumulated interest are repaid, typically from the proceeds of the sale of your home. 

Most lifetime mortgages include a no negative equity guarantee, which states that you’ll never owe more on your loan than the house is worth.

Equity Release Schemes in Ormskirk

Ormskirk is home to several equity release providers offering a range of products. Several equity release plans are available, each with unique features and advantages. Your particular needs and circumstances will determine your choice.

A lifetime mortgage is the most common form of equity release scheme in Ormskirk. The borrower’s property is used as security for this long-term loan, due once the borrower passes away or enters long-term care. 

Both in Ormskirk and the rest of the North West, these are very well-liked. Another equity release product offered in Ormskirk is a home reversion plan. This entails giving the lender a portion of your property in exchange for a discount from its market price. 

Rent-free occupancy is permitted in your home until your passing, but you are still liable for its upkeep and insurance. It is always advised to consult a professional equity release advisor before choosing a plan. 

You can better understand the benefits and risks of each equity release product by working with equity release advisers in Ormskirk. Additionally, they can guide you through the equity release procedure and ensure it’s the best option for your financial requirements.

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 Criteria for Equity Release

You must be 55 or older, own a home in the UK (ideally in Ormskirk), and be in good condition to qualify for equity release in Ormskirk. The minimum property value is one additional requirement that some providers might have. 

You may still be eligible for equity release even if your house has a mortgage or loan secured against it. The released funds must be applied to any outstanding mortgages, though. 

Equity release can impact your tax situation and eligibility for means-tested benefits, so it’s important to remember that. Therefore, obtaining unbiased financial and independent legal advice is imperative before moving forward with an equity release plan. 

Equity Release in Ormskirk

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.

Pros and Cons of Equity Release

Plans for equity release can significantly increase your retirement income, but like any financial commitment, they have advantages and disadvantages. 

The ability to release tax-free money from the value of your home is one of the main advantages of equity release. This additional cash can be used to improve your standard of living in retirement, settle debts, or fund essential home improvements. 

Additionally, unless you decide to make monthly payments, an equity release mortgage typically does not require them. When your home is sold, which typically happens when you pass away or enter long-term care, the loan and rolled-up interest are paid off.

Equity release does have the disadvantage that it sometimes costs more than a conventional mortgage. Lifetime mortgages typically have higher interest rates, and the interest builds up over time. Early repayment fees can also add up to a lot.

Your tax situation and eligibility for state benefits may be impacted by equity release. Additionally, it can lower the value of your estate, leaving your beneficiaries with less. Therefore, getting professional equity release advice is imperative before making a choice.

Calculating your Equity Release

Your age, the value of your home, and the equity release plan you select are just a few variables that will affect how much equity you can release from your home. 

An equity release calculator is valuable for calculating how much you could borrow. It’s only a rough estimate; a financial advisor or equity release provider can confirm the sum.

Remember that even if you can release a certain amount, it does not mean you should. It’s best only to take what you need because the interest on the amount lent can add up quickly. 

Releasing equity may also affect your tax situation and eligibility for means-tested benefits. Therefore, before making a choice, you should always consult a professional.

Legal Implications of Equity Release

Equity release has several legal repercussions. Therefore, before signing an equity release agreement, it is crucial to obtain independent legal counsel. 

According to the Equity Release Council, all providers must give a fair, straightforward, and comprehensive presentation of their plans. This includes the effects on taxes, state benefits, and potential impact on the family of your choice. 

It’s important to remember that equity release is a long-term decision that can be challenging to reverse. Therefore, before moving forward, make sure you comprehend all of the terms and conditions of your equity release plan.

Impact on Inheritance and Benefits

Equity release can significantly negatively impact the value of your estate, leaving less money for your beneficiaries. So, talking to your family about your plans is essential before you do anything. 

Your ability to receive means-tested benefits may also be impacted by equity release. Your eligibility for council tax benefits or pension credits may be affected if the money you release from your home pushes your savings above a certain threshold. 

On the other hand, the inheritance protection guarantee provided by some plans enables you to ring-fence a portion of the value of your property for your beneficiaries. If you’re worried about leaving an inheritance, this may give you peace of mind.

Seeking Professional Advice in Ormskirk

Equity release is a significant choice that should be made with time. Getting expert, unbiased advice is critical before deciding if it’s your best course of action. 

Many knowledgeable equity release consultants can explain your plans and options in Ormskirk. Considering your needs and circumstances, they can explain how equity release might benefit you. 

Remember that your age, health, property value, and personal financial situation will all play a role in determining which equity release strategy is best for you. As a result, consulting an advisor is crucial before making a choice. 

It’s also crucial to consider other options, such as downsizing to a smaller property or using additional savings and investments in addition to equity release. 

To ensure that you make an informed choice regarding your financial future, a financial adviser can assist you in exploring your options. Always remember that equity release is only one of the best options for everyone and that you should think carefully before making this choice.

Releasing Equity: Inheritance Considerations

In Ormskirk, it’s crucial to consider the potential impact on inheritance when thinking about equity release. The amount you can leave to your beneficiaries may be reduced if you release equity from your home. 

However, some equity release products come with extras like inheritance protection guarantees that a portion of the property’s value will go to your loved ones.

It’s crucial to share your equity release plans with your loved ones. Thanks to this transparency, they will be informed of any potential reduction in their inheritance. It also helps prevent any unforeseen events or conflicts in the future.

Remember that other factors besides your family’s financial future could also be impacted. Your decision to release equity could affect any means-tested benefits they qualify for after your passing. So, it makes sense to involve your family in the decision-making process.

StepChange Financial Solutions and Advice

StepChange is a nonprofit organisation that provides debt counselling and expert advice to people struggling with money matters, including choices regarding equity release. You can learn much from this unbiased service about the effects of taking out home equity.

It’s important to remember that, if not handled carefully, equity release can result in a debt cycle. StepChange can offer tips on managing your money and averting such situations. They can also suggest equity release substitutes that suit your situation.

Additionally, consulting with StepChange can give you a more detailed understanding of how equity release might affect your financial situation and long-term planning. They can assist you in comprehending the long-term effects and determining whether releasing equity is an option for you.

Financial Conduct Authority and Equity Release

The UK’s Financial Conduct Authority (FCA) governs equity release providers and products to protect consumers. For those thinking about taking this financial step, they offer protection by laying out guidelines and rules for equity release providers.

In Ormskirk, all equity release products must adhere to FCA guidelines. Giving accurate, truthful, and non-misleading information about the product and its dangers is a part of this. Additionally, it means that suppliers must deal with clients ethically and responsibly.

You can check the status of your equity release provider on the FCA’s Financial Services Register. You may feel more at ease knowing you are working with a regulated entity.

Choosing a Mortgage Broker in Ormskirk

In Ormskirk, selecting a reputable mortgage broker is crucial when considering equity release. A good mortgage broker can offer insightful advice, walking you through your options and explaining how various products operate.

Consider a broker’s expertise and experience in equity release when choosing one. They should clearly explain the terms and conditions of various products, along with any potential risks and advantages.

A good mortgage broker can also assist you in comprehending the potential effects of equity release on your finances and long-term goals. They can give you a customised illustration based on your unique situation and recommend the best equity release product. 

The Role of Estate Agents in Equity Release

In the equity release process, estate agents are essential. Their main job is to give you a fair appraisal of your property. The amount of equity you can release depends heavily on this valuation.

Ormskirk’s estate agents are highly knowledgeable about the regional real estate market. They can provide a precise and fair market value for your property thanks to their knowledge.

Remember that your property’s value can significantly impact your release amount. As a result, obtaining a trustworthy and accurate valuation from an established estate agent is essential to the equity release procedure. 

Considering Long-Term Care and Equity Release

The cost of long-term care must be considered when considering equity release. The equity in your home could be a valuable resource to help pay for care costs if you ever need them.

It’s important to realise that using equity to pay for long-term care may impact your estate and inheritance. Additionally, it might affect any means-tested benefits for which you or your partner may qualify.

Therefore, it is strongly advised that you consult a financial advisor about your long-term care plans before making an equity release decision. 

They can offer a clear picture of how your choice might affect the funding for your future care and offer advice on the best course of action for your requirements. 

Retirement Mortgages and Equity Release

Retirement mortgages are another choice for Ormskirk homeowners who want to access home equity. Retirement mortgages, which are different from conventional equity release plans in that they call for regular payments, may be more manageable and affordable in the long run.

It’s crucial to understand that equity releases and retirement mortgages are different. Both let you use the equity in your house, but the terms and interest rates can be very different.

You can better understand the distinctions between retirement mortgages and equity releases by discussing your options with a financial advisor. Depending on your financial situation and retirement objectives, they can point you toward the best option. 

Understanding Homeowner Rights with Equity Release

It’s critical to comprehend your rights if you’re a homeowner considering equity release. Reputable equity release companies should be open and honest about all the conditions and costs associated with their products.

Per Financial Conduct Authority regulations, you are entitled to a “cooling-off” period after signing an equity release agreement. This gives you time to rethink your choice and get more guidance.

Remember that equity release is a significant financial commitment, so you should never feel compelled to choose. Always take the time to carefully consider the implications and seek advice from a financial advisor before taking action.

About Ormskirk

In the centre of West Lancashire, England, is the bustling and storied market town of Ormskirk. The city is a charming fusion of tradition and modernity, well known for its vibrant market days and rich heritage. 

Ormskirk’s primary postal code areas are L39 and L40, and the telephone area code is 01695.

Ormskirk is known for its stunning architecture, with many structures bearing remnants of its colourful past. One of the few churches in England with both a tower and a spire is the Parish Church of St. Peter and St. Paul, making it a must-see for tourists.

Additionally well-known is Ormskirk’s bustling market, which has existed since 1286. The market offers a variety of goods from local vendors every Thursday and Saturday of the year. It’s a fantastic location to find uncommon goods and locally grown, fresh produce.

Along with having a long history, Ormskirk is also the location of Edge Hill University, one of the top schools in the UK for teacher preparation. With a diverse student body from across the nation and abroad, the university brings a vibrant and young energy to the community.

Ormskirk is also conveniently situated, with excellent access to major cities via transport. It is a great starting point for exploring the North West because it is only 15 miles southwest of Preston and 13 miles north of Liverpool.

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) Aughton

2) Bickerstaffe

3) Burscough

4) Lathom

5) Scarisbrick

6) Skelmersdale

7) Halsall

8) Lydiate

9) Maghull

10) Melling

11) Rufford

12) Tarleton

13) Upholland

14) Westhead

15) Wrightington

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

1) Southport

2) Formby

3) Crosby

4) Kirkby

5) Leyland

6) Bootle

7) Maghull

8) Rainford

9) Parbold

10) Banks

11) Croston

12) Wigan

13) St Helens

14) Liverpool

15) Preston

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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