Many Oxford homeowners are considering using equity release as a financial tactic. Homeowners can access a tax-free lump sum or recurring payments by releasing equity from their property without selling.
There are many equity release options, each with unique features and advantages.
Property owners over 55 can choose to use equity release. A lifetime mortgage, a loan secured by the value of your home, is the most popular type of equity release.
A home reversion plan is another kind of equity release product in which you offer a provider a portion of your real estate in exchange for a lump sum or ongoing payments.
In the case of a lifetime mortgage, you maintain ownership of your home and are not required to make regular payments. Instead, when the homeowner dies or enters long-term care, the loan and any accumulated interest are paid back.
The Financial Conduct Authority oversees the equity release market, ensuring no negative equity guarantee is included in equity release products. This eliminates the possibility of having negative equity by guaranteeing that you will never owe more than the value of your home.
You must be a homeowner who has owned a property in the UK for at least 55 years to be eligible for equity release. The amount of equity that can be released will depend on the value of the property and the homeowner’s age.
Your eligibility may also be affected by the state of the property and whether it is co-owned.
You can get professional guidance from an equity release adviser to determine your eligibility. They can calculate how much you could release using an equity release calculator.
Obtaining independent legal counsel is essential before implementing an equity release plan.
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.
The two primary forms of equity release in Oxford are lifetime mortgages and home reversion plans. Most lifetime mortgages offer various payment options, including a tax-free lump sum, regular payments, or both.
On the other hand, home reversion plans entail selling all or a portion of your property to a provider. You can take the money in a lump sum or as regular payments, and you can then occupy the house without paying any rent for the rest of your days.
Obtaining financial advice from a licensed financial adviser is crucial before deciding on the type of equity release. They can assist you in comprehending the merits, drawbacks, and risks of each option.
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.
|Product Name||Interest Rate||Type of product||Offers|
|Just For You – J2.5||6.22%||Fixed||Free ValuationNo application fee|
|Just For You – J1||6.30%||Fixed||Free ValuationNo application fee|
|Premier Flexible Pearl||6.43%||Fixed||Free Valuation|
|Premier Optional Payment Pearl||6.43%||Fixed||Free Valuation|
|Horizon 240 Drawdown||6.43%||Fixed||Free Valuation|
|Classic Drawdown Super Lite 2||6.47%||Fixed||Free Valuation|
|Horizon 260 Drawdown||6.47%||Fixed||Free Valuation|
|Classic Elite Drawdown Super Lite 2||6.47%||Fixed||Free Valuation|
|Premier Flexible Pearl||6.48%||Fixed||Free Valuation|
|Premier Optional Payment Pearl||6.48%||Fixed||Free Valuation|
|Horizon 240 Drawdown Fee Free||6.49%||Fixed||Free ValuationNo application fee|
|Classic Drawdown Super Lite 1||6.52%||Fixed||Free ValuationNo application fee|
|Premier Flexible Pearl||6.52%||Fixed||Free Valuation|
|Premier Optional Payment Pearl||6.52%||Fixed||Free Valuation|
|Classic Elite Drawdown Super Lite 1||6.52%||Fixed||Free ValuationNo application fee|
|Flexible Pearl||6.53%||Fixed||Free Valuation|
|Optional Payment Pearl||6.53%||Fixed||Free Valuation|
|Enhanced Lifestyle Flexible Option||6.53%||Fixed||Free ValuationNo application fee|
|Horizon 260 Drawdown Fee Free||6.55%||Fixed||Free 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.
Equity release has some advantages. Access to tax-free money held in your home is one of the main benefits.
This could give you a sizeable financial boost, enabling you to supplement your pension, pay for home improvements, or maintain a comfortable standard of living in retirement.
The guarantee that most equity release products offer is that there will be no negative equity. This guarantees that you won’t leave a debt for your family to pay off in the future because you’ll never owe more than the value of your home.
Although equity release has potential financial advantages, there are risks and things to consider. One significant risk is lowering the value of your estate, which may impact any inheritance you wish to leave.
The release of home equity may also impact your tax situation and means-testing for benefits.
The price of equity release should also be taken into account.
There may be early repayment fees if you pay off the loan before the agreed-upon date, and equity release products typically have higher interest rates than standard mortgages.
The Financial Conduct Authority regulates equity release, ensuring all providers adhere to a strict code of conduct. This includes giving customers unbiased financial advice before buying a product and giving them clear and transparent information about their products.
High standards are also set for members of the Equity Release Council, an industry trade group. The no negative equity guarantee, which ensures that customers will never owe more than the value of their home, is one of its central tenets.
A crucial first step is picking an equity release provider. You should consult a financial advisor who can help you navigate the process. They can assist you in comprehending the various products that are offered as well as the possible risks and advantages.
The provider’s reputation and membership in the Equity Release Council, which guarantees they follow a strict code of conduct, are also essential to consider.
The release of home equity may have tax repercussions. Although the money you release is tax-free, investing it or earning interest could change your tax situation. To fully grasp the potential implications, financial advice is imperative.
Your ability to receive means-tested benefits may also be impacted by equity release. It is crucial to talk this over with your advisor before deciding.
Many homeowners in Oxford may find equity release a workable financial solution. Before making a choice, it’s crucial to fully comprehend all factors, including the various types of equity release products and any potential risks and advantages.
Obtaining an equity release mortgage in Oxford can be a significant financial commitment, particularly a lifetime mortgage. This kind of equity release product entails securing a loan against the entire market value of your house.
You continue to own your home, and the mortgage lender gives you a lump sum of cash or ongoing payments.
The majority of lifetime mortgages don’t require you to make monthly payments. Instead, when the last surviving borrower passes away or enters long-term care, the remaining loan balance and rolled-up interest are paid off.
There are equity release programs, though, where you can pay interest to lower the amount that must be paid back later. But remember that monthly payments can impact your spending plan, particularly if you have a fixed retirement income.
Understanding the associated equity release costs is essential before signing an agreement. These could consist of advisory fees for the financial advice you receive, legal fees for impartial legal counsel, and an advisory fee imposed by the equity release advisor.
Even though the interest rates for equity releases are typically set for life, they are frequently higher than those of a typical mortgage. If you pay off the loan earlier than expected, there might also be early repayment fees that are high depending on the equity release plan.
When attempting to comprehend how the interest may accumulate over time, an equity release calculator can be helpful. Thinking about step-change financial solutions or getting debt counselling is worthwhile if you have financial difficulties.
In Oxford, Age Partnership is a well-known provider of equity release. They provide considerate equity release options that are catered to the needs of the individual. Their team of specialists in equity release offers knowledgeable counsel to aid in your decision-making.
Age Partnership operates by UK regulatory standards, just like other equity release providers, guaranteeing the security and dependability of their equity release products. Additionally, they follow the rules established by the Equity Release Council.
It’s vital to fully comprehend the terms and conditions before choosing any equity release product. To fully understand the potential impact on your tax position and eligibility for state benefits, ensure you receive unbiased financial and independent legal advice.
There are additional options for accessing money in later life besides equity release. One such option is downsizing to a new home that is less expensive than your current one. While this may result in some financial savings, it also requires leaving your beloved home.
Another choice is to think about shared ownership. It enables you to keep most of your property while selling some. Remember that you might not receive the total market value for the portion you sell.
Adopting a lodger is an additional option. Although it can bring in extra money, you must share your home with someone else. Consider any potential privacy implications and potential effects on your council tax.
You might be interested in releasing equity if you own a commercial property. Yes, that is the answer. Specific equity release products are offered by some lenders for commercial properties.
In contrast to residential properties, commercial properties can be trickier to release equity from.
Consultation with a financial advisor who knows commercial property equity release is essential.
The value of the property and the type of business typically determine how much you can release. The loan is repaid when the property is sold, similar to residential equity release.
Always get independent legal counsel before moving forward with equity release, whether it concerns residential or commercial property. This guarantees that you are aware of all the implications and risks.
Equity release has drawbacks even though it can give you financial independence in retirement. Equity release horror stories have been told where people have discovered they owe more money than their property is worth due to compound interest.
Due to the Financial Conduct Authority’s regulations and the members of the Equity Release Council’s promise of no negative equity, these scenarios are now less likely to occur. Thanks to this guarantee, you will only owe the value of your property.
But before choosing equity release, it’s still essential to get financial advice and comprehend all the possible risks and advantages.
Remember that equity release is just one of your retirement planning options. It’s crucial to consider all your options and pick the best fit for your requirements and situation.
Oxford, also known as the “city of dreaming spires,” is a thriving and ancient city in England’s South East. It is well-known worldwide for housing the esteemed University of Oxford, which is located in Oxfordshire.
A rich tapestry of historical and cultural delights can be found throughout the city, exquisitely decorated with architectural splendour. The area code for calls in Oxford is 01865, which includes the postcodes OX1, OX2, OX3, and OX4.
The OX1 postcode area covers the city centre and west Oxford, the OX2 postcode area includes north and west Oxford, the OX3 postcode area includes east Oxford, and the OX4 postcode area includes Cowley, Blackbird Leys, and Sandford-on-Thames.
The city has a thriving cultural scene with numerous museums, theatres, and galleries for locals and visitors. It is also well-known for its architecture and education.
Oxford offers a distinctive fusion of old tradition and new charm thanks to its picturesque surroundings and historical landmarks like the Bodleian Library and Ashmolean Museum.
Oxford has a diverse population and is a large city. The city’s multiculturalism attracts people worldwide and is critical to its success. This diversity is reflected in the city’s year-round abundance of cultural events, food festivals, and music performances.
Interestingly, Oxford is also recognised for its connection to literature. Numerous books and television shows have occurred there, including Phillip Pullman’s “His Dark Materials trilogy” and the renowned “Inspector Morse” series.
The city’s beautiful surroundings still inspire writers, filmmakers, and artists today, giving it a cultural dimension that enhances its historic appeal.
Here is a list of local areas and boroughs where equity release services can be provided:
9) Blackbird Leys
15) Rose Hill
18) New Hinksey
19) North Hinksey
20) South Hinksey
34) Chipping Norton
39) Long Hanborough.
Try Age Partnership’s equity release calculator and estimate how much money you could release from your property
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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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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