Equity Release in Plymouth

Equity Release In Plymouth | March 2024

A financial product called equity release in Plymouth enables homeowners—typically those over 55—to access the value of their properties without selling. This procedure entails obtaining a lifetime mortgage or signing a home reversion agreement. 

With either a lump sum or ongoing payments to supplement your income, both options offer a way to release equity from your home.

Table of Contents

Understanding Equity Release

Equity release is a method of gaining access to the money your property secured. The released funds may be received in one large sum, several smaller ones, or a combination of all three. 

It’s crucial to realise that these plans involve a loan secured by your home when thinking about your equity release options because they do. You should know that any outstanding mortgages must be paid off to release equity from your home. 

The cash lump sum from the equity release can be used for this. Your age, the market value of your home, and the specific terms of the equity release product all impact how much money you are eligible to borrow.

Plans for equity release frequently include a guarantee against negative equity. This guarantees that you will never owe more than the value of your home, regardless of how much your property’s market value declines. 

Thanks to the equity release agreement, you can continue to reside on your property until you pass away or enter long-term care.

Equity Release Types 

Home reversion plans and lifetime mortgages are the two main categories of equity release. Most people choose lifetime mortgages, which let you borrow money while owning your home. 

In most cases, the interest rate on lifetime mortgages is fixed, or if it is variable, a cap or upper limit is set.

You can make recurring payments on a lifetime mortgage or allow the interest to accrue. The loan balance and accumulated interest must be repaid when you pass away or enter long-term care. 

Home reversion, however, entails selling all or a portion of your house. You might receive regular payments or a tax-free lump sum from this kind of equity release. 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.

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 at least 55, own a property in the UK, and be in good physical condition to qualify for equity release in Plymouth. You will be guided through the eligibility requirements by your financial advisor, and you may also require independent legal counsel. 

It’s crucial to consider how equity release will impact your tax situation and eligibility for government benefits.

Equity Release in Plymouth

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.

Plymouth’s Real Estate Market 

Property values in Plymouth’s real estate market have steadily risen, giving many homeowners the option of equity release. Equity release may be a way for first-time homebuyers or people with outstanding loans to secure extra money later.

An equity release advisor can also assist you in comprehending the potential effects of equity release on your estate. They can guide you through the various equity release products and offer professional advice, such as how much equity you can release from your home.

Advantages of Equity Release 

Equity release may be advantageous in many ways. There are no monthly payments to worry about, and it can offer a tax-free lump sum or a steady income. Equity release can also help with family support, home improvements, and retirement comfort. 

Thanks to the no negative equity guarantee, you can feel secure knowing you’ll never owe more than your home is worth. The Financial Conduct Authority regulates equity release, adding to your peace of mind.

Potential Risks of Equity Release 

Equity release can ease financial strain, but there are risks involved. It’s a sizable financial commitment that may impact your tax situation and could lessen the inheritance you leave behind. If you decide to change your mind, there may be additional fees for early repayment.

Your ability to receive means-tested benefits may be impacted by equity release. Therefore, before moving forward, it’s essential to get unbiased financial advice and comprehend the terms and conditions of your equity release plan.

Navigating Equity Release Regulations 

Equity release is governed by the Financial Conduct Authority, just like any other financial product. To treat you fairly, all equity release companies must abide by strict guidelines.

Getting advice from a financial adviser on the financial services register is crucial when considering equity release. They can describe the characteristics, advantages, and dangers of equity release.

Finding Trusted Equity Release Providers in Plymouth

It’s essential to pick the best equity release provider. Look for businesses that are Equity Release Council members because they offer extra protections like a no-negative equity guarantee. 

Consider reputable suppliers like StepChange Financial Solutions, Ocean Equity Release, and Responsible Life. These service providers provide a selection of equity release products and have a reputation for offering knowledgeable counsel specific to each client’s needs.

Receiving Professional Equity Release Advice 

Getting qualified equity release advice is crucial when considering equity release. You can get assistance from a qualified equity release adviser who can walk you through the steps and explain how it might affect your tax situation and means-tested benefits. 

They can also assist you in navigating the market’s assortment of equity-release products. There may be fees associated with equity release advice, but they are an investment in helping you make a wise choice. 

Advisors will offer a thorough equity release plan for your unique situation. Before signing an equity release agreement, it’s also wise to get independent legal advice. This ensures you fully know how the contract will affect your estate and future finances.

Exploring Equity Release Schemes in Plymouth

In Plymouth, there are numerous equity release plans. For instance, Responsible Life Limited offers a range of equity-release products. Thanks to their lifetime mortgage, owners can withdraw tax-free money from their property while still homeowners.

Another provider of lifetime mortgages in Plymouth is Ocean Equity Release. They guarantee that clients will never owe more than the value of their home with a no negative equity guarantee included in their plans.

Always base your plan on your financial objectives and current situation. And you can find a plan that works for you with the assistance of a financial advisor.

Understanding the Costs of Equity Release 

Equity releases’ costs may include advice, lender, surveyor, and legal fees. If you pay off the loan earlier than expected, there might also be early repayment fees. However, a lot of suppliers provide goods with low interest rates. 

For instance, most lifetime mortgages have either fixed interest rates or, if variable, interest rates that are capped or have an upper limit. This is a crucial consideration because the interest rate significantly impacts the overall amount you pay back.

Your council tax is an additional expense to take into account because it might go up if you take equity out of your house. However, some state benefits may be available to help defray this expense.

Safeguarding Your Equity Release Journey

Many measures have been implemented to ensure your equity release journey is secure. For example, the Equity Release Council sets high standards for service providers to guarantee that customers are treated fairly. 

Additionally, council members are required to guarantee no negative equity. This ensures you will never owe more on your home than it is worth, even if housing prices decline.

The Financial Ombudsman Service can also assist you if you have grievances regarding your product or service provider. They provide a neutral service to resolve conflicts between customers and financial institutions.

Managing Equity Release Repayments 

Most equity release plans, particularly lifetime mortgages, do not require monthly payments. The loan and any rolled-up interest are paid back when you pass away or enter long-term care. However, if you’d prefer, you can make monthly repayments with some programmes.

Although equity release is a fantastic way to release some cash, it’s essential to remember that it is a loan that will eventually need to be repaid. Therefore, before moving forward, you must seek debt advice and fully comprehend the terms of your equity release agreement.

Considering Your Long-Term Care Needs 

Equity release may also be a way to pay for long-term care in your later years. The cash lump sum or recurring payments can be put towards caregiving services, home modifications, or even a nursing home.

You must, however, consider any potential effects on your eligibility for state benefits. Discussing this with your financial advisor is essential because releasing equity from your home may impact your eligibility for means-tested benefits. 

Despite the risks, equity release can be a valuable tool for managing your finances in retirement with careful planning and professional guidance.

About Plymouth

Plymouth, a bustling city in the South West of England, is perched on the Devonian coast and offers stunning views of Plymouth Sound. 

The town has a long maritime history and is home to some of the UK’s most famous naval and marine landmarks, such as the Mayflower Steps and the Royal William Yard. 

The primary postcode areas in the city are PL1 to PL9, and the area code for phone calls is 01752. Plymouth is a city of contrasts, with the peaceful, ancient beauty of the Barbican and Sutton Harbour coexisting with bustling, contemporary shopping malls like Drake Circus.

The most prominent cobbled streets in England are found in Plymouth, also home to HMNB Devonport, the most extensive operational naval base in Western Europe. 

Plymouth offers a diverse cultural scene, with a range of galleries, theatres, and live music venues, in addition to its rich history and heritage.

Plymouth offers everything, from its charming waterfront to its thriving city centre. This vibrant city offers a wealth of things to see and do, whether you’re a history buff, a nature enthusiast, or a foodie.

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) Barbican

2) Beacon Park

3) Compton

4) Crownhill

5) Devonport

6) Drake

7) Efford

8) Eggbuckland

9) Ernesettle

10) Estover

11) Hartley

12) Hooe

13) Honicknowle

14) Keyham

15) King’s Tamerton

16) Laira

17) Lipson

18) Manadon

19) Mutley

20) North Prospect

21) Peverell

22) Plymstock

23) Roborough

24) Southway

25) St Budeaux

26) Stoke

27) Stonehouse

28) Tamerton Foliot

29) Whitleigh

30) Woolwell

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

1) Saltash

2) Torpoint

3) Plympton

4) Ivybridge

5) Yelverton

6) Wembury

7) Brixton

8) Yealmpton

9) Bere Alston

10) Bere Ferrers

11) Tavistock12) Looe

13) Liskeard

14) Modbury

15) Kingsbridge

16) Salcombe

17) Princetown

18) Gunnislake

19) Calstock

20) Callington

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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