A growing financial craze in Wrexham is equity release. Many homeowners in North Wales are looking into this option to access the value of their homes without moving.
Based on the market value of your property, the process of releasing equity may result in a sizeable lump sum or a consistent flow of income.
If you are over 55, equity release refers to financial products that let you access your home’s equity (cash). The money you release can be received in one large sum, several smaller ones, or a combination of both.
Your choice of equity release product will be influenced by several elements, such as the amount of equity you wish to release, the value of your home, and your particular tax situation. Before choosing an equity release strategy, getting professional advice is critical.
You can better understand the various equity release options available and how they might affect your tax situation and eligibility for state benefits with the aid of an equity release adviser.
Home reversion and lifetime mortgages are the two ways to release equity.
Most lifetime mortgages include a no negative equity guarantee, ensuring you’ll never owe more on your loan than the house is worth. On the other hand, home reversion entails giving the provider a portion of your property for less than its market value.
If you select this option, you can live in your home for the rest of your life. Depending on the equity release provider and the particulars of the agreement, the price of the equity release can change.
The equity release cost typically consists of a financial adviser’s advice fee, a solicitor’s legal fee for handling the legal work, and an early repayment fee if you pay off the loan earlier than anticipated.
Home reversion plans and lifetime mortgages are the two main equity release strategies. The most popular kind of equity release is lifetime mortgages. You can withdraw tax-free money from the value of your property thanks to this loan secured by your house.
In addition to interest-only lifetime mortgages, which require monthly payments, there are also roll-up lifetime mortgages, which tack on interest to the loan’s principal balance.
On the other hand, home reversion plans entail selling all or a portion of your house to a home reversion business. You can remain rent-free in your home until you pass away or enter a long-term care facility permanently, but you no longer own the entire property.
The equity you release can be paid to you in a lump sum, regularly, or in a combination of both. However, taking it all at once might impact your tax situation and any means-tested benefits you may be eligible for.
It is imperative to get equity release advice before selecting an equity release plan. A financial advisor can help you find a strategy that meets your needs by offering unbiased financial advice about the various approaches.
You should also seek independent legal counsel before signing an equity release agreement.
Try Age Partnership’s equity release calculator and estimate how much money you could release from your property
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You must be 55 or older, a resident of the UK, and the owner of your home to qualify for equity release in Wrexham. You may also need to use the proceeds from the equity release to pay off any outstanding mortgages if the property is in good condition and exceeds a specific value.
Your property’s value and life expectancy may affect your eligibility for equity release. You can typically borrow less money if you’re younger. Depending on your age, health, and lifestyle factors, most lenders will give you a loan that is a portion of the value of your home.
Consider all your options because equity release can be a significant financial commitment. Before making a choice, consult a financial advisor.
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.
There are several steps involved in the equity release procedure in Wrexham. You must first meet with a financial advisor with expertise in equity release.
They will assist you in comprehending the advantages and dangers of equity release and suggest the kind of plan that might work best for you.
The next step is to select an equity release provider. To get the best deal, it makes sense to compare different providers. The Equity Release Council maintains a list of member companies that offer equity release, a trade association for the sector.
After deciding on a provider, you must complete an application. The provider will then make arrangements for an evaluation of your property. You can release a certain amount of money based on this.
Once your application is accepted, a lawyer will handle the required legal work. The funds will be available once all the paperwork has been finished.
It’s important to remember that equity release involves costs and can take several weeks to arrange. You’ll have to pay for the legal work, the property appraisal, and the advice you receive.
Equity release has a lot of advantages, but it could also have some disadvantages. Before deciding if it’s the right choice for you, weighing the benefits and risks is critical.
Equity release can enable you to access a tax-free lump sum or a recurring income, one of its main advantages.
This can be especially helpful if you need to pay for home care, make home improvements, assist family members, or want a more comfortable retirement if your pension income is insufficient.
Another advantage is that a lifetime mortgage allows you to move into long-term care or remain at home until you pass away. If the new home is acceptable to your equity release provider, you can relocate without incurring costs.
The drawback of equity release is that it can be costly over time. A lifetime mortgage’s interest can quickly mount up and reduce the inheritance you can leave.
It’s also important to remember that obtaining an equity release plan may impact your tax situation and eligibility for government benefits.
Negative equity, or owing more on your home than it is worth, is another risk. You will only owe the value of your home thanks to the no negative equity guarantee now offered by many providers.
The Financial Conduct Authority (FCA) regulates equity release, so service providers must adhere to specific standards of behaviour. If you are dissatisfied with the service you receive, the FCA also offers a complaints procedure.
You should get outside legal counsel before you sign an equity release agreement. You can get assistance from a lawyer in understanding the contract terms and how they affect your estate.
Additionally, you should know that you and your partner must sign the equity release agreement if you’re married or in a civil partnership. If only one of you signs, the other could lose their right to occupy the property if that person passes away first.
One of the most critical steps in the equity release process is seeking financial advice. You can better understand the benefits and dangers of equity release with the aid of a financial advisor.
They can also assist you in looking into other possibilities, like downsizing to a smaller home or using savings.
Make sure the financial advisor you choose is eligible for equity release. The Certificate in Regulated Equity Release (CeRER) or the Certificate in Lifetime Mortgages are the common names for this.
Additionally, picking an advisor from the Equity Release Council is smart. This indicates that they abide by a code of conduct that contains promises like the promise of no negative equity.
Equity release can lower your estate’s value and the amount of inheritance you leave behind. After you pass away or enter a long-term care facility permanently, the money you owe on an equity release plan, along with any interest, is paid back from the sale of your house.
There are ways to protect a portion of the value of your property if you’re thinking about equity release but are concerned about leaving an inheritance.
As part of an inheritance protection guarantee, some plans allow you to ring-fence a portion of the value of your property for your heirs.
Before you proceed, remember to talk to your family about equity release. They might be willing to lend you money or would rather receive a smaller inheritance than see you go through financial hardship.
The value locked up in your home can be released with the help of equity release, but it’s only for some. Before making a choice, seeking advice from a reputable financial advisor and discussing your plans with your family is crucial.
Ryan Reynolds and Rob McElhenney’s football league team, Wrexham AFC, has promoted equity release as a financial tool for later-life planning.
In Wrexham, for instance, equity release is viewed as a way for homeowners to access the value of their homes without selling or moving. The Financial Conduct Authority oversees the North West equity release market, which includes Wrexham and Manchester United.
This offers customers a complaints process if they believe they have been mistreated. It’s a system that emphasises the value of professional advice on equity release and guarantees consumer protection.
Many retirees’ financial plans may benefit significantly from equity release. Although it requires a significant financial investment, it can provide retirement financial freedom with the proper guidance and comprehension.
Understanding your home’s value and how much equity you can release is essential in the real estate market. In this regard, using an equity release calculator can be beneficial. The real estate market in North Wales, where Wrexham is located, has distinctive characteristics.
In navigating this, the assistance of a mortgage specialist can be invaluable. When releasing equity, one should consider the cost of a new home, current mortgage rates, and even the possibility of shared ownership.
The property’s value is a critical factor in determining the amount of money you can access through equity release.
Many homeowners use the funds to pay off an existing mortgage, cover medical expenses, protect their businesses, or contribute 5% of the purchase price for a relative’s first home.
Although it is a flexible financial tool, it is essential to comprehend the risks and benefits before moving forward.
A solicitor should be consulted for impartial legal advice as part of the equity release procedure. They can assist you in comprehending the legal ramifications, such as the provider’s company number and the specifics of the equity release agreement.
It’s also critical to realise that if you default on a mortgage or any other debt secured by your home, you risk losing it. It’s important to consider how it might affect your tax situation and any means-tested benefits you receive.
Finally, it’s critical to remember that you own the equity in your home. You have the right to obtain it in a manner that best meets your needs and financial objectives. Equity release can be a potent weapon in your financial toolbox with the proper guidance and comprehension.
North Wales’ bustling market town of Wrexham is home to many historical and cultural artefacts. This town, tucked away in the county borough of Wrexham, is the regional centre for business, government, and education in North Wales.
Wrexham is easily recognised and reachable thanks to its 01978 area code. The LL11 and LL13 postcode areas, which include a variety of residential and commercial properties, primarily cover the town.
Wrexham’s distinctive fusion of urban conveniences and rural charm attracts residents and businesses. Wrexham has numerous attractions that appeal to a wide range of interests.
The town’s fascinating heritage, seen at places like the historic Acton Park and the antiquated Wrexham Cathedral, will appeal to history buffs. For those who enjoy sports, Wrexham is home to Wrexham AFC, the oldest football club in Wales.
The fact that Ryan Reynolds and Rob McElhenney, two well-known Hollywood actors, co-own this club recently made headlines.
The academic community of Wrexham is distinguished by the presence of Wrexham Glyndr University, which is renowned for its top-notch engineering and computing programmes.
The town’s strategic location close to the North West England border, which makes it an excellent base for exploring the surrounding area, adds to its appeal. Despite having urban characteristics, Wrexham still has its natural roots.
Beautiful natural areas surround the town, such as the serene Bellevue Park and the charming Erddig Hall and Park. Amid the town’s busy activity, these green spaces provide residents and visitors fresh air and tranquillity.
Here is a list of local areas and boroughs where equity release services can be provided:
19) Garden Village
22) New Broughton
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.
0333 567 1812
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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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