Homeowners in Peterborough who are thinking about retiring can access the value of their property without having to sell it, thanks to equity release.
Homeowners can release tax-free money through this financial option, overseen by the Financial Conduct Authority, in a lump sum or through recurring payments.
A financial product known as equity release enables homeowners of a certain age, typically those over 55, to release equity from their homes while residing there. A lifetime mortgage or a home reversion plan can accomplish this.
A lifetime mortgage is a loan secured by the value of your home and is deferred until your death or admission to long-term care.
On the other hand, a home reversion plan entails selling all or a portion of your property to a provider of a home reversion scheme in exchange for a tax-free lump sum or recurring payments while maintaining the right to occupy the property without paying rent.
You can choose between making monthly payments on an equity release plan or letting the interest roll up, in which case it will be added to the loan and paid off when the property is sold.
Most lifetime mortgages include a no negative equity guarantee, ensuring that neither you nor your loved ones will ever owe more money than the house is worth. The Equity Release Council oversees the regulation of the equity release market in Peterborough and throughout the UK.
This industry organisation ensures that advisers and providers follow high standards of behaviour. This adds an extra layer of consumer protection and guarantees you get advice from a certified equity release adviser.
The two primary choices in equity release products are lifetime mortgages and home reversion plans. Your unique situation, financial requirements, and long-term objectives will significantly determine which of these two equity release options you choose.
The most common form of equity release is a lifetime mortgage, which lets you borrow a portion of your home’s value at a fixed or capped interest rate. When you pass away or enter long-term care, the loan and rolled-up interest are paid off, and you keep home ownership.
On the other hand, home reversion plans entail parting with your home to a provider for less than its market value. Either a one-time tax-free lump sum, ongoing payments, or both are options.
Home reversion plans, instead of lifetime mortgages, ensure an inheritance because you only sell a portion of your home’s value. They may limit your eligibility for state benefits and are less flexible than lifetime mortgages.
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You must fulfil critical requirements to be eligible for equity release in Peterborough. You must be a homeowner who is 55 or older, and your home must be in livable condition and worth at least £70,000.
The equity release provider will consider the type of property and its location when assessing. You can still release equity from your property even if it already has a mortgage or secured loan.
However, you are required to pay off any existing mortgage with some of your release money. It’s also important to remember that when you release equity from your home, your eligibility for means-tested benefits and your tax situation may change.
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.
Seeking professional equity release advice from a licenced adviser is the first step in submitting an equity release application in Peterborough. Understanding the equity release agreement’s features, costs, and potential effects.
Consider getting independent legal counsel along with talking to your loved ones. As soon as you move forward, the adviser will assist you in selecting the best equity release product from a lender.
The lender will appraise your property to ascertain how much equity you can release. After completing the required paperwork, including a thorough application form, the lender removes the funds as a lump sum or ongoing payments.
Equity release requires a significant financial investment and has many potential drawbacks. It’s critical to realise that equity release may affect your eligibility for means-tested benefits and decrease the value of your estate.
A lifetime mortgage’s interest can add up quickly, increasing the total amount you owe.
If you pay off your plan early, there may be significant early repayment penalties. An equity release plan can be expensive when advice, legal, and lender fees are considered.
It’s also important to remember that if you release equity immediately, interest may accrue quickly and raise your debt. If you select a plan without a negative equity guarantee, you owe more money than the value of your home.
Take independent legal counsel before moving forward with equity release in Peterborough. You can better understand the terms and conditions of the equity release contract, as well as your rights and obligations, with the assistance of a lawyer.
They will ensure you know the effects on your estate, financial situation, tax situation, and whether you qualify for means-tested benefits.
The legal steps in equity release include examining the provider’s offer, reviewing the property’s title, conducting local authority searches, and meeting with you to sign the mortgage deed.
Equity release will lower the value of your estate and leave your beneficiaries with less money. When you pass away or enter long-term care, a lifetime mortgage will be repaid along with any accumulated interest, typically through the sale of your home.
If you have a home reversion plan, the provider will own a portion of your home and get that amount of the sale proceeds.
On the other hand, some equity release plans provide an inheritance protection guarantee that enables you to ring-fence a portion of the value of your property to be left as an inheritance.
It’s also important to note that equity release can help you manage the value of your estate for inheritance tax purposes.
Considering equity release’s complexity and long-term implications, consulting a professional is essential. An expert advisor specialising in equity release can help you decide if it’s the best option.
They can help you think about other options and explain how they will affect your tax situation and potential eligibility for state benefits. Advisors can also help you navigate the variety of equity release products on the market to find the one that best suits your needs.
They can also describe the advantages and dangers of each kind of equity release plan. This guarantees that you make an informed choice while considering your situation and long-term financial objectives.
Many trustworthy equity release advisors in Peterborough are listed with the Equity Release Council. They follow a rigid code of ethics that ensures your financial security. To further protect consumers, the Financial Conduct Authority also regulates these advisers.
A significant choice like equity release can impact your financial future and the lives of those you love. Therefore, taking your time to research, get advice, and weigh all your options before moving forward is crucial.
Your financial situation may be significantly impacted by equity release. Your current mortgage and other financial obligations might be affected. The money from your equity release plan would need to be used to pay off any existing mortgages you may have on your home.
Additionally, equity release can offer a way to consolidate debt, giving you a way to organise your finances. However, it’s crucial to get debt advice before moving forward because equity release may have higher interest rates than other types of borrowing.
Equity release may also have an impact on your tax situation. For instance, releasing a sizable lump sum could make you ineligible for certain benefits or put you in a higher tax bracket. Discussing the potential tax implications with a financial advisor is essential to comprehend the potential tax implications.
Understanding how various home ownership models may affect your eligibility and the amount you can borrow is crucial if you’re considering equity release. For instance, the equity release options that are available to you may change if you share ownership of your property.
With most types of property ownership, including leasehold and freehold, equity release is typically possible. However, the requirements for each equity release lender vary.
Companies may not offer schemes for leasehold properties with less than a specific number of years left.
If you have a shared ownership property, where you own a portion of your home and rent the rest, equity release may be more difficult. Holding a sizable piece of your home would be best to qualify for equity release.
Your equity release adviser, a financial adviser, and a solicitor are just a few of the industry experts involved in the equity release procedure. Each one contributes differently to your ability to make wise decisions.
Your equity release advisor will walk you through your options and assist you in selecting an appropriate strategy. They will also offer an extensive equity release calculator to understand potential outcomes clearly.
You can get a more comprehensive understanding of your financial situation and how equity release fits into your financial planning from a financial adviser. All factors, including tax position, means-tested benefits, and retirement interest, will be considered.
A solicitor will handle the legal aspects of the equity release process. They ensure the arrangement is legitimate, the contract terms are fair, and you comprehend everything.
Additionally, they’ll communicate with the lawyer for your equity release provider to make sure all the necessary paperwork is in order.
The amount you can sell your house will largely depend on its market value. If the value of the property rises, you might release more equity. However, a decline in real estate values could affect how much equity can be taken out.
It’s crucial to take your plans into account. Check if your equity release plan can be transferred to a new home if you intend to move to a new property. Most lifetime mortgages permit this only if your new home satisfies the equity release provider’s property requirements.
You should also be aware of potential early repayment fees if considering downsizing. If you repay your equity release plan early, as might happen if you sell your home and move into a smaller one, some equity release plans may charge you.
The equity release industry in Peterborough and the UK is tightly controlled, providing numerous levels of consumer protection. High standards are set for advisers and providers by the Equity Release Council, and no-negative equity guarantees are a requirement for all plans.
The Equity Release Market is also regulated by the Financial Conduct Authority (FCA), and all providers and advisers must register with them. They make sure businesses adhere to rules and treat customers fairly.
You can take your complaint about an equity release product to the Financial Ombudsman Service if necessary.
These organisations’ responsibility is to guarantee consumer safety for equity-release products. From the time you receive advice until your equity release agreement is signed, they ensure you are treated fairly throughout the process.
East of England’s Peterborough is a cathedral city in the county of Cambridgeshire. It is renowned for having the magnificent Peterborough Cathedral, which dominates the town’s skyline.
The primary postcode areas in Peterborough are PE1 and PE2, and the phone area code is 01733. In terms of population and economy, Peterborough is one of the UK’s cities expanding the fastest.
It combines modernity and rich history, with various historical landmarks coexisting with new construction. The city is a significant hub for commerce and transport because of its proximity to London—just 75 miles north.
The city has a vibrant cultural scene with many festivals, theatres, and art exhibitions. The Peterborough Phantoms ice hockey team and the “The Posh” football club are two examples of Peterborough’s rich sporting history.
The dedication of Peterborough to environmental sustainability is one of its distinctive features. Since being named the UK’s Environment Capital in 2015, the city has worked to build the most sustainable city in the country.
Additionally, Ferry Meadows Country Park, one of the biggest country parks in the area, is well-known for its lovely green spaces.
Many sectors, including financial services, advanced engineering, and digital and creative services, contribute to Peterborough’s thriving economy. One of the UK’s most significant clusters of environmental businesses is located in the city.
Here is a list of local areas and boroughs where equity release services can be provided:
10) Orton Longueville
11) Orton Waterville
12) Park Farm
25) Market Deeping
26) Deeping St. James
Try Age Partnership’s equity release calculator and estimate how much money you could release from your property
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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
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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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