Equity Release in Stockport

Equity Release In Stockport | March 2024

Homeowners in Stockport who are typically over 55 can unlock the value of their homes through the increasingly well-liked financial strategy known as equity release. 

Using this method, you can release the equity in your property and receive a lump sum, ongoing payments, or both. This can be a helpful way to pay for long-term care, make large purchases, or supplement your income in retirement. 

Table of Contents

Understanding Equity Release

Equity release is gaining access to the value or “equity” locked up in your home without having to sell or vacate. Lifetime mortgages and home reversion plans are Stockport’s two equity release products. 

With a lifetime mortgage, you can borrow money against the value of your home as a form of equity release. The loan is paid back when you pass away or enter long-term care. 

Notably, most lifetime mortgages include a guarantee against negative equity, ensuring that you’ll never owe more on your loan than the value of your home. Home reversion entails giving a lender a portion of your property for less than its market value. 

You can stay there without paying rent until you pass away or leave your home. The proceeds from the sale of the lender’s portion of the property will then be distributed among the other owners under their respective ownership interests.

The value and age of your home are just two variables that affect how much you can release through an equity release product. An equity release calculator can determine how much equity you could release.

Types of Equity Release Schemes

As previously mentioned, there are two main categories of equity release plans: lifetime mortgages and home reversion plans. Each equity release product has unique features and advantages.

The most popular equity release product is a lifetime mortgage. You obtain a loan secured by your home when you take out a lifetime mortgage. You can continue to live there and retain ownership of your house. 

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

Most lifetime mortgages come with flexible options, like the choice to ring-fence a portion of your property’s value for inheritance purposes or the ability to make voluntary repayments to control the balance.

On the other hand, home reversion plans entail selling all or a portion of your home to a reversion company in exchange for a tax-free lump sum or ongoing payments. 

You won’t be the only owner of your home, but you can continue to live there without paying rent for the rest of your life.

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.

Equity Release Regulation in Stockport

In the UK, equity release is governed by the Financial Conduct Authority (FCA), which ensures that all advisers and providers follow strict guidelines for the protection of consumers. 

A set of standards and procedures are also provided by the Equity Release Council, a trade organisation for the equity release industry, for its members to abide by. 

These rules offer a safety net for people who release equity from their homes, including the assurance that they can remain in their homes for the rest of their lives and defend against negative equity.

Getting objective financial advice from a licenced adviser is critical when considering equity release in Stockport. This advisor should guide you into alternative possibilities and outline the benefits and risks of equity release. 

You should get independent legal advice before implementing an equity release plan.

Equity Release in Stockport

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.

Advantages of Equity Release

One of the main benefits of equity release is accessing a tax-free lump sum or regular income without leaving your home. 

This could significantly increase your retirement income, enabling you to maintain or upgrade your standard of living, make home improvements, or provide for loved ones financially.

Additionally, it is a valuable tool for estate planning and equity release. For instance, releasing equity as needed through a lifetime mortgage with a drawdown facility may help you have a smaller estate and pay less inheritance tax.

Flexibility is another advantage of equity release. For instance, you can make monthly payments or let the interest accumulate with a lifetime mortgage. You can ring-fence a portion of your home’s value for inheritance under some plans. 

Additionally, you can use the money you receive to support loved ones, make home improvements, or travel as you please.

Risks and Considerations

While equity release can have many advantages, it’s also important to be aware of risks and other factors. To begin with, equity release is a complicated product, so it is essential to get professional advice before moving forward.

The effect of equity release on the value of your estate is one of the main risks involved. There will be less to leave as an inheritance as you use up some of the wealth in your house. Before moving forward, discussing this with your loved ones is crucial.

Your tax situation and eligibility for means-tested benefits may be impacted by equity release. For instance, releasing a sizable lump sum could make you ineligible for help or put you in a higher tax bracket. You must talk about this with a financial advisor.

Additionally, while most equity release plans don’t guarantee against negative equity, this isn’t always the case. If home prices fall significantly, you owe more on your mortgage than your home is worth. You can get advice on this from a specialist in equity release.

Finally, it’s critical to take equity release costs into account. These can consist of advice fees, valuation fees, arrangement fees, and solicitor’s fees. A lifetime mortgage’s interest rate can also increase over time, particularly if you allow the interest to roll over.

Applying for Equity Release in Stockport

Consultation with an experienced equity release adviser is essential before submitting an equity release application in Stockport. They can help you comprehend the advantages and risks of equity release and offer unbiased advice customised to your situation. 

To find the best equity release product, they can also assist you in comparing various options. You must disclose information about your property, age, and health when applying for equity release. 

You should also talk to your advisor about your needs and goals, such as whether you want a lump sum, recurring income, or both. Your adviser will suggest an equity release product that meets your needs.

After you’ve decided on an equity release product, your adviser will assist you in submitting your application. This typically entails legal work and property valuation, which can take weeks to complete. 

You’ll get your money after your application is accepted, and you can use it however you like.

Finding a Reputable Adviser

The key to equity release is to find a trustworthy adviser. A good equity release adviser will offer unbiased guidance, outline the benefits and drawbacks of various equity release products, and assist you in considering additional options. 

Additionally, they should be subject to Financial Conduct Authority oversight and participate in the Equity Release Council. Stockport has several ways to locate a trustworthy equity release advisor. 

You can use an online directory, ask friends and family for recommendations, or ask the Equity Release Council for a list of members. Additionally, ensure the advisor offers a free initial consultation and verifies their credentials and experience.

When meeting a potential adviser, don’t be afraid to ask questions. They should make you feel at ease and that you can rely on them to look out for your interests. Never be afraid to clarify anything if you’re unclear.

Implications for Inheritance and Tax

Your inheritance and tax situation may be significantly impacted by equity release. There will be less to leave as an inheritance as you use up some of the wealth in your house. 

Speaking with your advisor and close family members about whether leaving a sizable estate is something you must do is essential. The money you release through an equity release is tax-free. 

However, you might have to pay tax if you invest the money and it produces an income or allows you to withdraw a sizable lump sum and raise your total assets above the inheritance tax threshold. You should talk to a financial advisor about this.

Your ability to receive means-tested benefits may also be impacted by equity release. Your eligibility for benefits like Pension Credit and Council Tax Support may be affected if you release equity and it raises your savings above a certain threshold. 

Again, consulting with a professional advisor before moving forward is imperative. As a result, equity release can be a valuable tool for boosting your retirement finances, but it’s only appropriate for some. 

Getting professional advice, comprehending the features and risks, and considering how it will affect your inheritance and tax situation is critical.

Equity Release Mortgages and Interest Rates

One of the most well-liked equity release products is mortgages. These mortgages give homeowners access to a portion of the value of their property while still allowing them to live there. 

When a homeowner dies or enters long-term care, the mortgage and accumulated interest are paid off. Depending on the provider and the particular product, interest rates for equity-release mortgages can vary significantly. 

Lifetime mortgages frequently come with fixed interest rates, providing the homeowner with financial security. However, some products have variable interest rates that increase or decrease over the loan. 

It’s critical to comprehend how the interest on your equity release mortgage compounds over time, regardless of the type of interest rate. If you decide not to make monthly payments, this compound interest can significantly raise the total amount you owe.

All members of the Equity Release Council must provide a “no negative equity guarantee.” No matter how much interest accrues, this guarantee ensures you will only owe what your home is worth. 

So, even if home prices decline or you live longer than anticipated, your loved ones won’t inherit a debt from you.

Seeking Equity Release Advice in Stockport

Seeking professional equity release advice is essential before deciding on an equity release. Equity release can be complicated, so using it should be a smooth decision. 

A knowledgeable equity release adviser can walk you through the application process, explain the features and risks, and assist with product comparisons. You can get equity release advice in Stockport from several places. 

These include mortgage brokers, equity release-focused financial advisors, and businesses like Age Partnership and StepChange Financial Solutions. 

Ensure your adviser is subject to Financial Conduct Authority regulation and is a member of the Equity Release Council to protect you and be at ease. Equity release advice can range in price. Others may charge a percentage of the loan amount, while some advisers charge a fixed fee. 

This must be made clear and considered when determining your overall cost priorities. Some advisors also provide a free initial consultation to assess your options without committing.

Protecting Your Family and Estate

While equity release can boost your retirement income, it’s essential to consider the potential effects on your family and estate. Your estate’s value will drop due to releasing equity from your house, possibly leaving less for your loved ones to inherit. 

Discussing your plans with your family before moving forward with an equity release is essential. They might have ideas or worries or be able to offer different solutions. 

Some equity release plans allow you to ring-fence a portion of the value of your property, ensuring that your family will receive a specific inheritance if the inheritance is a significant concern.

Additionally, hiring a lawyer is crucial when thinking about equity release. Legal professionals whom the Solicitors Regulation Authority governs can offer unbiased counsel and assist in defending your interests throughout the procedure. 

They can review the contract, make sure you understand your responsibilities, and explain the legal ramifications of equity release.

Your tax situation may also be affected by equity release. Even though the money you release is tax-free, investing it or raising your overall asset value above the inheritance tax threshold could impact your tax situation. More information on this can be found from a financial advisor.

About Stockport

The large town of Stockport in Greater Manchester, England, is rich in culture and appeal. Stockport, where the Tame and Goyt Rivers merge to form the River Mersey, is in Cheshire County. 

This town is simple to find for locals and visitors alike thanks to its telephone area code of 0161 and primary postcode areas starting with SK1 to SK8. Hatting, in particular, has a long industrial history in Stockport. 

In the nineteenth century, the town was a significant hub for the hat-making industry and was known for creating the renowned Stockport felt hat. The Hat Works Museum of Hatting, still open today, houses artefacts from this former profession.

The town’s history as an industrial hub is one of many draws. Several iconic buildings, including the Stockport Viaduct, are also found there. 

One of the most significant brick-built structures in the United Kingdom, this impressive structure spans the valley of the River Mersey and carries the West Coast Main Line. Another one of Stockport’s appealing qualities is its bustling town centre. 

The town centre provides a delightful fusion of contemporary conveniences and classic charm with its assortment of stores, eateries, and historic markets. 

One of the oldest markets in the North West, Stockport Market, is a popular destination that sells everything from fresh local produce to one-of-a-kind handcrafted goods. The Stockport Plaza hosts frequent theatre performances, comedy shows, and movie screenings. 

The town also has a thriving arts and culture scene. The Stockport Garrick Theatre, the oldest “little theatre” in the UK, gives local performers a stage and hosts a wide variety of productions all year long.

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) Bredbury

2) Cheadle

3) Cheadle Hulme

4) Compstall

5) Gatley

6) Hazel Grove

7) Heaton Chapel

8) Heaton Mersey

9) Heaton Moor

10) Heaton Norris

11) Marple

12) Marple Bridge

13) Mellor

14) Reddish

15) Romiley

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

1) Manchester

2) Wilmslow

3) Macclesfield

4) Knutsford

5) Altrincham

6) Sale

7) Hyde

8) Glossop

9) Ashton-under-Lyne

10) Stretford

11) Oldham

12) Salford

13) Bury

14) Bolton

15) Warrington

16) Northwich

17) Congleton

18) Winsford

19) Crewe 

20) Stoke-on-Trent

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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