Equity Release in Reading

Equity Release In Reading | March 2024

Homeowners in Reading who are in their later years can access the value of their residential property through equity release. 

They can obtain a tax-free lump sum or recurring payments by releasing equity to augment their retirement income. 

Table of Contents

Understanding Equity Release

Equity release uses your home’s value while you are still a resident. There are two categories of equity release products: lifetime mortgages and home reversion plans

One of the most common forms of equity release is a lifetime mortgage. This entails using your home as collateral for a loan, with the amount you can borrow typically determined by the value and age of your property. 

When you pass away or enter long-term care, the loan and rolled-up interest are paid back. 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.

On the other hand, a home reversion plan entails selling all or a portion of your property to a home reversion business in exchange for a one-time payment or ongoing payments. Until you pass away or enter a nursing home, you are permitted to remain rent-free in your home. 

Advantages of Equity Release

Accessing tax-free money without selling or leaving your home is one of the main benefits of equity release. This can give seniors a financial lifeline by supplementing pensions or paying for unforeseen expenses like home repairs or care costs.

Another flexible option for managing your finances in retirement is equity release. Some equity release plans let you take money out as needed, which could mean paying less interest overall than if you took the money out all at once. 

Additionally, the Financial Conduct Authority (FCA)-regulated equity release products have protections like the no negative equity guarantee, which guarantees you won’t leave a debt to your estate. 

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.

Risks Associated with Equity Release

Equity release has disadvantages in addition to its benefits. This significant financial commitment will impact your tax situation and eligibility for means-tested state benefits. 

The value of your estate and the inheritance you can leave behind should be carefully considered when deciding whether to use an equity release plan.

A lifetime mortgage’s interest can compound quickly, significantly increasing the balance you owe. Even though you are not required to, choosing to do so can help you control the outstanding loan size. 

If you repay your lifetime mortgage earlier than expected, there might be additional fees. If your circumstances change, switching to a new product or provider may become expensive due to these fees, which can be significant.

Equity Release in Reading

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.

Legal Aspects of Equity Release

A contract for equity release exists between you and the equity release provider. Before signing such an agreement, it is crucial to obtain independent legal advice to comprehend the terms and conditions.

There will be legal costs, which can vary between solicitors. While some might charge a set fee, others might bill a percentage of the loan amount. 

To ensure that customers are treated fairly, the Equity Release Council, a trade organisation for the equity release sector, establishes a code of conduct for its members. The costs and effects of equity release are among the information that must be made clear and transparent.

Types of Equity Release Schemes

Home reversion plans and lifetime mortgages are the two main equity release strategies. 

A lifetime mortgage entails borrowing money backed by your house as collateral. Typically, no monthly payments are required, and you retain home ownership. 

When you pass away or enter long-term care, the loan and interest are paid back. A home reversion plan entails selling all or a portion of your house to a reversion firm in exchange for a one-time or ongoing payment. 

You can remain rent-free in your home until you pass away or enter long-term care.

Equity Release Providers in Reading

Many equity release companies in Reading offer a range of products to meet various needs. Age Partnership, Key Retirement, and Aviva are some of these suppliers. Each supplier has unique interest rates, features, and eligibility requirements.

Seek professional equity release advice before selecting a provider. A knowledgeable equity release adviser can assess the market and suggest the strategy that best suits your needs. 

They can talk about alternatives like downsizing or using savings along with equity release.

Equity Release Impact on Inheritance

Equity release can lower the value of your estate, which will impact how much you can leave as an inheritance to your loved ones. 

When you pass away or enter long-term care, the amount of heritage will decrease as the loan balance (plus interest) is repaid through the sale of your home.

Some vendors offer products with that feature if protecting an inheritance is significant. This enables you to set aside a portion of the value of your property as an inheritance, regardless of how much interest is accrued on your loan.

Seeking Professional Advice on Equity Release

Considering equity release’s long-term effects, consulting a professional is essential. An expert equity release adviser can offer unbiased guidance regarding your needs and circumstances. 

They can assist you in comprehending the characteristics, advantages, dangers, and costs of various equity release products. It is crucial to obtain independent legal counsel in addition to financial counsel. 

A lawyer can guarantee your interests are protected and explain the legal ramifications of equity release. Discussing your options with your family before choosing is a good idea. Equity release could affect them, especially in light of any potential inheritance. 

The value of your home can be released through equity release in retirement, giving you a lump sum or additional income to help your financial situation. 

However, it’s an extensive choice that shouldn’t be made hastily. Always get expert, unbiased advice before moving forward with an equity release.

Securing an Equity Release Loan

Obtaining an equity release loan is a popular choice for those who want to live comfortably in retirement. You can receive regular payments or a tax-free cash lump sum by taking advantage of the equity in your home. 

Drawdown lifetime mortgages and home reversion plans are two options for equity release loans. With a drawdown lifetime mortgage, you can take out a loan against the value of your home, with your house serving as collateral.

With this kind of equity release, you can take out the money as needed. However, there are effects of equity release loans on your tax situation. For instance, your cash lump sum may affect your ability to receive certain means-tested benefits. 

Before moving forward, obtaining independent financial advice is critical to understand your tax situation fully. Your financial advisor can offer professional advice to help you make educated decisions regarding equity release.

Keep in mind that equity release loans require a significant financial commitment. It’s important to consider all factors, including the cost of equity release, which could include an advice fee, a legal fee, and possibly early repayment fees. 

Equity Release and Your Inheritance

Your ability to leave an inheritance may be impacted if you release equity from your house. Less will be left for your heirs as the equity release mortgage is paid off with the value of your home. However, the majority of lifetime mortgages include a guarantee against negative equity. 

This prevents your heirs from inheriting debt by guaranteeing you’ll never owe more than your home is currently worth. Some homeowners might be concerned about how equity releases will affect their heirlooms. 

Some schemes offer inheritance protection if you want to preserve a portion of your real estate wealth for your loved ones. This enables you to set aside an amount of the value of your property as an inheritance, regardless of the accrued interest.

Equity release can give retirees a much-needed financial boost despite the potential effects on inheritance. The additional funds may be used for anything, including home renovations, long-term care, mortgage payments, or even purchasing a new home.

Finding a Reliable Equity Release Adviser

Finding a reputable equity release adviser is essential in the rapidly expanding market. An equity release adviser can guide you through the process and explain the various products and their potential ramifications. 

They can offer knowledgeable equity release advice and details on the financial ombudsperson service and the equity release council. Make sure the adviser you choose is on the financial services register. 

This guarantees they are subject to financial conduct authority regulation and follow consumer duty. A good advisor will also be open and honest about the advice fees. 

The adviser can assist you using an equity release calculator to determine how much equity you can release. 

This tool calculates an estimate by considering your property’s age and value. It’s crucial to remember that the provider’s terms and conditions may affect how much you can withdraw.

The Role of the Equity Release Council

The Equity Release Council protects consumers in the equity release market. The council establishes criteria for its members, ensuring they deliver superior service and uphold a rigid code of conduct. 

A negative equity guarantee is one of the safe equity release products that the panel advocates for. The Equity Release Council should comprise all reputable equity release providers and advisors. 

Thanks to this membership, customers can deal with a business dedicated to upholding high standards of conduct and practice.

The Equity Release Council also offers helpful resources for those considering equity release. These include manuals, frequently asked questions, and a list of authorised equity release advisors. You can be sure you’re making an informed choice with their assistance.

About Reading

In the South East of England, in the royal county of Berkshire, is the bustling town of Reading. Reading has a long history and has been a significant commercial hub since the Middle Ages. 

Numerous historical sites, such as the famous Reading Abbey ruins and the Museum of Reading, can be found there. The community has a thriving economy with various businesses, including those in insurance and information technology. 

Reading is also well-known for its yearly Reading Festival, one of the most well-liked music festivals in the UK that attracts visitors from all over the nation and abroad. Reading is an excellent place for commuters because it is well-connected. 

The town’s primary postcode areas are RG1, RG2, RG4, RG5, RG6, RG30, and RG31, and its area code for telephone calls is 0118. Reading is surrounded by stunning natural scenery despite being in an urban area. 

The confluence of the Rivers Thames and Kennet makes the town’s waterside setting appealing. The Chiltern Hills, an area of outstanding natural beauty, are also accessible from Reading.

Reading’s claim to fame as the birthplace of renowned children’s author Oscar Wilde is an intriguing fact about the city. The poignant piece “The Ballad of Reading Gaol,” by Oscar Wilde, was also set in the town’s jail.

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) Abbey

2) Battle

3) Caversham

4) Church

5) Katesgrove

6) Kentwood

7) Mapledurham

8) Minster

9) Norcot

10) Park

11) Peppard

12) Redlands

13) Southcote

14) Tilehurst

15) Whitley

16) Wokingham

17) Maidenhead

18) Bracknell

19) Twyford

20) Theale

21) Pangbourne

22) Henley-on-Thames

23) Basingstoke

24) Newbury

25) Thatcham

26) Slough

27) Windsor

28) Eton

29) Ascot

30) Staines-upon-Thames

31) Egham

32) Virginia Water

33) Sunningdale

34) Sunninghill

35) Streatley

36) Goring.

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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