For homeowners in Wigan looking to unlock the value of their property, equity release has grown in popularity.
This financial strategy is intended to assist people in maximising their resources while still allowing them to live comfortably in their homes.
A financial product called equity release gives you access to the equity locked up in your property. Homeowners can withdraw this equity in one lump sum or over time. Your age and the worth of your property affect how much you can release.
Home reversion and lifetime mortgages are the two main types of equity release. A home reversion involves selling a portion of your home while continuing to live there rent-free, whereas a lifetime mortgage is a loan secured against your home.
Your circumstances and financial objectives will determine the equity release product you choose. Before moving forward with an equity release plan, it is essential to get unbiased financial advice.
By working with an equity release adviser, you can better understand the implications of releasing equity and how it may affect your tax situation and eligibility for means-tested benefits.
Knowing the costs involved is crucial when selecting an equity release product.
These could include interest rates, consulting fees, and penalties for early repayment. An equity release calculator can estimate how much equity you can release from your home.
There are numerous equity release plans available to homeowners in Wigan. A national trade organisation called the Equity Release Council establishes requirements for service providers to ensure homeowners are adequately protected.
In Wigan, a lifetime mortgage is the most popular equity release plan. Homeowners can borrow a portion of the value of their property through this kind of equity release.
When the homeowner passes away or enters long-term care, the loan balance plus accrued interest is repaid. A home reversion plan is another type of equity release plan.
In this scheme, you give your house to a home reversion company in exchange for a lump sum of cash or ongoing payments. You have the right to live in your home without paying rent until the day you pass away, but you must also agree to keep it maintained and insured.
Your specific situation will determine the best equity release plan for you, so it’s always a good idea to get professional advice before making a choice.
Try Age Partnership’s equity release calculator and estimate how much money you could release from your property
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Age, property value, and health are the typical factors determining your eligibility for equity release. Most providers demand that you be at least 55, though some may have higher requirements.
You must be the sole owner of your home or still owe a small mortgage on it. The equity release provider will determine the minimum value of the property and its condition. Your health may also impact your eligibility.
Some lenders may increase the amount you can borrow if you smoke or have certain medical conditions. Finally, you must show that you can maintain your home and pay other expenses like insurance and council tax.
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.
Homeowners who use equity release can access a tax-free lump sum or recurring payments from the value of their property. This can help pay for home improvements, add to a retirement income stream, or be used for debt repayment or family support.
The “no negative equity guarantee” is another perk. This guarantees that no matter how much money you borrow plus interest, you will never owe more than the value of your house.
Additionally, equity release may provide some flexibility. For instance, some programmes let you pay interest to keep the loan balance from rising, or you can pay off the loan early without penalties.
Equity release has advantages, but it can also have risks and disadvantages. Release of equity can affect your tax situation and eligibility for means-tested benefits, which is an essential factor to consider. Understanding these ramifications is crucial before moving forward.
Compound interest associated with some equity release products is another potential drawback. Over time, this can significantly raise your debt, decreasing the inheritance you can leave.
There might be penalties if you pay off your equity release plan early.
It’s crucial to comprehend these fees and consider them when making decisions. Finally, because equity release lowers the value of your estate, there might be better options if you want to leave your property to your family.
A legally binding contract between you and the equity release provider is known as an equity release agreement. Before signing such an agreement, it is crucial to get independent legal counsel.
The terms and conditions, including any early repayment penalties and how the plan will affect your estate, can be explained by a lawyer.
The Equity Release Council has established guidelines for providers to treat customers fairly.
Customers will never owe more than the value of their home thanks to a “no negative equity guarantee” included in this. Consumers are further protected by the Financial Conduct Authority’s regulation of all equity release providers, which is required.
This covers the need for unambiguous communication, treating people fairly, and handling complaints.
A pivotal choice to make is which equity release provider to use. The provider’s reputation, the terms and conditions governing their products, and any fees or charges should all be considered.
Additionally, confirming that the provider is subject to Financial Conduct Authority regulation and is a member of the Equity Release Council is critical. You can get unbiased guidance from an independent financial adviser to select providers.
They can also assist you in comprehending the various equity release products on the market and how they operate. It’s essential to think about a provider’s level of customer service when making your decision.
A good service provider will answer your questions, provide clear information, and help you.
There are other ways to access the money secured by your property besides equity release. Other options include downsizing to a smaller house, getting a secured loan, or renting out a portion of your home.
What’s best for you will depend on your circumstances, as each option has benefits and drawbacks. For instance, downsizing could free up a sizeable amount of money, but you’ll need to find a new home that meets your needs.
Although you must make monthly payments, a secured loan might have a lower interest rate than an equity release. You can generate income by renting out a portion of your home, but you should consider the duties and difficulties of being a landlord.
You can investigate these options and determine which is best for your needs by seeking advice from a financial advisor.
Your property’s market value directly impacts how much equity you can release. Generally speaking, the more equity you can remove, the higher the market value of your property.
Determining your home’s value accurately is crucial because it will affect your equity release plan. To ascertain the current market value, a property survey is typically carried out by a qualified professional.
This evaluation considers many variables, including the property’s location, size, and condition. It’s important to remember that changes in the housing market can cause changes in the market value of your home over time.
The equity release provider typically handles the survey and valuation. The price of the study could be a part of the equity release price or a separate cost to take into account.
A way to handle sizable debts and financial obligations is through equity release. You could use the money from an equity release to pay off an existing mortgage or secured loan. This can reduce monthly payments and give you more financial freedom.
But before making this choice, getting independent financial advice is crucial. A financial advisor can thoroughly analyse your financial situation and offer personalised guidance.
They can also help you understand the possible repercussions of using equity release to pay off debts and provide debt advice.
People struggling with debt can get free, impartial advice from services like StepChange Financial Solutions. They can assist you in considering all of your options and coming to a decision.
It is essential to involve legal experts in the equity release procedure. Lawyers can make sure the equity release agreement is honest and legal. They can explain the terms and conditions, including potential early repayment penalties, advice, and legal costs.
Equity release lawyers are subject to regulation by the Solicitors Regulation Authority. This guarantees that they follow a set of guidelines created to protect clients.
Selecting an equity release-focused lawyer is crucial because they have the knowledge and experience to navigate the complex legal issues involved in these contracts.
You should also involve a mortgage advisor or broker in the process in addition to solicitors. They can offer customised mortgage advice based on your unique needs and situation.
They can also assist you in navigating the variety of equity release products on the market and aid in choosing the best option.
Another crucial factor to take into account when thinking about equity release is life insurance. A type of equity release plan called a lifetime mortgage typically does not call for monthly repayments.
Instead, when the homeowner passes away or enters long-term care, the loan and interest are paid back. If you have a life insurance policy, the payout could be used to pay off the equity release loan after your passing.
This would enable you to give your heirs a more significant portion of your estate. Discussing this scenario with a financial advisor or an equity release specialist is crucial to fully grasp the potential effects on your life insurance policy and estate planning.
Equity release can be complicated, so it’s essential to consider all relevant factors, including financial, insurance, and legal ones. You can choose that best meets your needs by consulting an expert and carefully weighing your options.
North West England’s Greater Manchester is home to the thriving town of Wigan. It belongs to the Lancashire county and is renowned for its extensive industrial history.
The city is prime for commuters because it is located about 16 miles west of Manchester and 17 miles east of Liverpool. The Wigan area code is 01942, and it serves not only Wigan but also the nearby towns and villages.
Many residential and commercial properties exist in the main postcode areas of WN1, WN2, WN3, WN4, WN5, and WN6. Wigan has a significant history, especially during the Industrial Revolution when it served as a central coal mining and mill town.
The Wigan Warriors Rugby League Club and the Wigan Athletic Football Club are the two most well-known sports teams in the area today. Wigan’s residents are frequently called “pie-eaters,” an interesting fact about the city.
The phrase “eating humble pie” doesn’t refer to overindulging in pies; instead, it dates to the 1926 General Strike, when Wigan coal miners were forced to return to work before others and were referred to as such because they were ‘eating humble pie’.
Wigan has a lot to offer in terms of culture. The Wigan Pier, a place revitalised from its industrial past into a place of culture, music, and entertainment, is located in the town. Another well-liked destination that provides information on local heritage and history is the Museum of Wigan Life.
Here is a list of local areas and boroughs where equity release services can be provided:
55) St Helens.
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.
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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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