Equity Release in Swindon

Equity Release In Swindon | April 2024

The UK’s thriving town of Swindon has noticed an increase in the equity release market. Many older homeowners in Swindon choose equity release for home improvements or to supplement their retirement income. 

Homeowners can use equity release to withdraw tax-free money from their property while residing there.

Table of Contents

Understanding Equity Release

A financial product called equity release enables homeowners 55 and older to release equity from their properties. The loan secured against the home is typically repaid when the homeowner dies or enters long-term care. 

The equity release product turns the value of your property into a cash lump sum or regular payments. Home reversion plans and lifetime mortgages are the two main types of equity release. 

A lifetime mortgage is a loan secured by your home and paid off when you pass away or enter long-term care. Home reversion entails selling all or a portion of your house to a company that offers home reversion plans in exchange for a one-time payment or ongoing payments.

Your age, property value, and health are just a few examples of the variables that affect the equity release interest rate and the amount you can borrow. 

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. The amount of equity you could release can be calculated using an equity release calculator.

These products are provided by members of the Equity Release Council and equity release providers subject to Financial Conduct Authority (FCA) regulation. 

A trade organisation called the Equity Release Council ensures equity release products are secure and appropriate for customers.

Benefits of Equity Release

Equity release has some advantages. First, it offers a tax-free lump sum or regular income. The released money can be used for anything, including home improvements, paying off existing debt, and boosting pensions. 

Second, some forms of equity release do not require monthly payments. Instead, the interest accumulates and is paid back when the last surviving borrower passes away or enters long-term care, along with rolled-up interest. 

Thirdly, most equity release products include a guarantee against negative equity. As a result, homeowners will never owe more than their home is currently worth. 

Finally, homeowners can benefit from the money released while living in their homes. This may be especially appealing to older borrowers who prefer to stay in their familiar surroundings.

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.

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Risks of Equity Release

While releasing equity has advantages, it’s essential to be aware of potential risks. Equity release, for instance, can lower your estate’s value, affecting inheritance. Before moving forward, it is necessary to have this conversation with family members.

Additionally, equity release may impact your tax situation and eligibility for government benefits. Due to the increased income or savings from equity release, any means-tested benefits you may receive may be diminished or eliminated.

Additional fees may exist if you repay your equity release plan early. Setting up an equity release plan, including advice, legal, and valuation fees, can be expensive. Lastly, interest rates may be higher than those for conventional mortgages. 

The interest is ‘rolled up’ or compounded over time, which can significantly increase the balance owed on the loan. Before moving forward with equity release, obtaining independent legal and unbiased financial advice is essential.

Equity Release in Swindon

Some of the Best Equity Release Interest Rates as of 18 April 2024

The table below shows you some of the best equity release rates for lifetime mortgages from some of the leading equity release providers in the UK. 

Provider NameProduct NameInterest RateType of productOffers
JustJust For You – J1 Green5.35%FixedFree Valuation
No application fee
JustJust For You – J2 Green5.40%FixedFree Valuation
No application fee
Scottish WidowsFR15.50%FixedCashback
Free Valuation
No application fee
JustJust For You – J25.50%FixedFree Valuation
No application fee
Standard LifeHorizon 200 Drawdown5.50%FixedFree Valuation
Standard LifeHorizon 200 Drawdown Fee Free5.55%FixedFree Valuation
No application fee
Scottish WidowsFR25.57%FixedCashback
Free Valuation
No application fee
Standard LifeHorizon 220 Drawdown Fee Free5.59%FixedFree Valuation
No application fee
Standard LifeHorizon 240 Drawdown5.59%FixedFree Valuation
More 2 LifeCapital Choice Ultra Lite Drawdown 15.60%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.

Equity Release Options in Swindon

A variety of equity release products are available in Swindon from many equity release providers. For instance, a nationwide equity release is a popular option. They offer a variety of lifetime mortgages with various features and interest rates. 

In Swindon, Murray Financial is a well-known authority on equity release. They assist homeowners in the process and offer knowledgeable equity release advice. 

Remember that the effect on your financial situation must be considered when selecting an equity release plan. 

You can get assistance from an equity release advisor who can walk you through the steps, outline the costs, and recommend the best product for your requirements. It’s also advised to look for impartial legal counsel.

Eligibility for Equity Release

You must own a property in the UK, be at least 55 years old, and be eligible for equity release. The home must be in good condition and serve as your primary residence. 

You can borrow a particular amount depending on age, health, and property value. The amount you can typically borrow increases as you get older. Some lenders might lend you more money if you have special medical conditions.

Your financial advisor can walk you through the application process and assist you in understanding the requirements for eligibility.

Legal Aspects of Equity Release

The Financial Conduct Authority (FCA) oversees equity release regulations, ensuring all products adhere to strict guidelines. The Equity Release Council holds its participants to high standards. 

These include providing a no-negative equity guarantee, guaranteeing the homeowner will have the right to live in their home for the rest of their lives, and ensuring the homeowner will receive impartial legal counsel.

Understanding the legal ramifications of equity release is crucial. For example, your estate will be smaller, impacting any inheritance you leave. 

Financial Advice on Equity Release

It’s critical to get financial advice before choosing equity release. A financial advisor can help you weigh the advantages and risks, look into your options, and make sure you pick the best product for your needs.

The FCA must regulate financial advisors. They can help you understand how equity release may affect your tax situation and eligibility for state benefits, offer professional advice, explain the costs, and provide expert advice.

Many financial advisors in Swindon specialise in equity release. They can help you with from figuring out your options to applying.

Impact of Equity Release on Inheritance

Equity release lowers your estate’s value, potentially affecting the inheritance you can leave to your family. When you pass away or enter long-term care, the loan and any accumulated interest are repaid from the proceeds of the sale of your property. 

Some equity release plans have an inheritance protection feature if you want to reserve a portion of your estate for heirs. This enables you to book a part of the value of your property for your beneficiaries.

Before moving forward with an equity release, you must discuss your plans with your family and get financial advice. A financial advisor can explain the effects of equity release on your estate and suggest ways to lessen those effects.

Exploring Equity Release Mortgage Options

One common form of equity release is a lifetime mortgage, also known as an equity release mortgage. It enables homeowners to take out loans against the value of their homes in either one large payment or ongoing payments. 

The loan is paid back when the borrower dies or the house is sold. Fixed interest rates are a feature of equity-release mortgages, guaranteeing that your monthly payments or rolled-up interest will never change. 

This gives you assurance regarding the remaining balance of your loan. If you decide to pay off the loan early, it’s important to consider early repayment fees. 

Several lenders in Swindon provide equity-release mortgages. The loan-to-value ratios, interest rates, and product attributes vary depending on the lender. One reputable provider offering a variety of options is the nationwide equity release. 

The Role of Equity Release Advisers

Homeowners can navigate the equity release process with the assistance of equity release advisers. 

They offer professional guidance on the different available products, the potential effects on your tax situation and means-tested benefits, and the best course of action for your circumstances.

Additionally, a financial advisor can assist you in comprehending the terms of the equity release agreement, such as the guarantee against negative equity and the potential for early repayment fees. 

Ensuring a professional on board can make the process less intimidating and more straightforward. There are numerous equity release consultants in Swindon. 

One such service provider is StepChange Financial Solutions, which offers objective financial guidance and assistance throughout the procedure.

Equity Release and Your Property

A key component of equity release is your property. The market value of your property determines the loan-to-value ratio, which is the maximum amount you are permitted to borrow. You can estimate this with the aid of an equity release calculator.

If you already have a mortgage on the property, you must pay it off before or concurrently with obtaining an equity release product. You may use all or a portion of the equity you release for this.

And finally, equity release plans let you keep residing in your house. Whether you choose a lifetime mortgage or a home reversion plan, you can remain in your home until your death or transition into long-term care.

Inheritance and Equity Release

Your inheritance may be significantly impacted by equity release. The amount that can be left as an inheritance decreases as the loan and any rolled-up interest are repaid from the sale of your property. 

On the other hand, some equity release products come with options that can safeguard a portion of your estate for your loved ones. You can ring-fence a part of your home’s value using an inheritance protection guarantee, ensuring your beneficiaries receive that sum.

You can navigate this delicate topic by discussing your plans with family members and seeking counsel from an equity release adviser. They can offer advice on how to lessen the impact on your inheritance and ensure that your loved ones know your intentions.

Equity Release for Retirement Planning

A valuable tool for retirement planning is equity release. It can supplement your pension income, make home improvements, or pay for lifestyle upgrades like travel. 

It should only be considered a small portion of a larger retirement plan because it’s a significant financial commitment.

It’s crucial to consider alternative options before choosing an equity release. For instance, downsizing to a smaller home might make the extra cash you require available. Alternatively, taking in a lodger or short-term room rentals could generate additional income.

Consult a financial advisor before making a choice. They can evaluate your circumstances, outline the benefits and drawbacks of each option, and aid in your decision-making.

About Swindon

In the southwest of England, in the county of Wiltshire, is the bustling town of Swindon. Thanks to its fantastic transport options, it is conveniently located between Bristol and London. 

The town, known for its area code 01793, has a long and illustrious history with roots in the Roman era. Swindon expanded in the 19th century due to the Great Western Railway, which continues to impact the town today through the well-known STEAM Museum.

Most postcode districts in Swindon are SN1, SN2, SN3, SN4, and SN5. From the lively town centre of SN1 to the quiet suburban regions of SN5, each area exudes its unique charm.

Lydiard Park, a historic estate on the western edge of Swindon, is one of the city’s greatest assets. It’s a well-liked location for locals and visitors because it has a lovely Palladian house, lovely parkland, and a mediaeval church.

Swindon has an impressive network of roundabouts, especially the Magic Roundabout, one of the nation’s most intricate rotaries. The town, formerly the most significant centre for car manufacturing in the UK, now houses the National Trust headquarters.

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) Old Town

2) Rodbourne

3) Haydon Wick

4) Wroughton

5) Walcot

6) Lawns

7) Gorse Hill

8) Stratton St Margaret

9) Westlea

10) Chiseldon

11) Highworth

12) Cricklade

13) Royal Wootton Bassett

14) Purton

15) Shrivenham

16) Wanborough

17) Lydiard Millicent

18) Bishopstone

19) Blunsdon St Andrew

20) Broad Hinton.

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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Saq is a financial expert and is responsible for the day-to-day running of the UK Care Guide website. Before taking on the operation of this site, Saq was a Director and the UK Head of DC Pensions, Benefits and Wellbeing at PwC. Saq is also a part of the steering group at the Living Wage Foundation, which has developed the UK’s National Living Pension standard.

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