If you would like to know more about unlocking some of the cash from your home, then Bower’s equity release services in Belfast are here to answer any questions you may have. Our experienced advisors are based in Northern Ireland, not a UK call centre, which means they are able to provide relevant face to face advice based on their in-depth knowledge of the local property market.
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At Bower, our team of independent financial specialists provide customers with impartial, whole of market, Financial Conduct Authority (FCA) Regulated equity release advice on whether it could help them access some of the value tied up in their property.
We understand those big financial decisions such as these can be overwhelming and the overall process quite intimidating if you don’t have the proper support. Our FCA qualified and knowledgeable experts are dedicated to providing customers with open, transparent and impartial advice with trust, honesty and service, to help them determine if equity release is the right choice for them and if so, what plan is best suited to their needs.
Is Equity Release Right for You?
Equity release can be a sensible and practical way for homeowners over the age of 55 to release some of the cash tied up in their home. However, it is a big decision, so it’s always important to do your research, seek professional advice and find out if it is a suitable choice for your circumstances.
Equity release is a way to release money from the value of your home but without having to move out or make repayments during your lifetime. This is a great option for those who are considered asset-rich but cash poor, with little income or savings but who own a valuable property. Choosing to go down the equity release route gives you access to that much needed tax-free cash without having to move or downsize from your beloved home.
If you are aged 55 or over, live in the UK and own a property worth over £70,000, then equity release may be the answer to your financial worries. The money released is yours to do with as you wish and can give you the financial freedom you have wanted to go on the holiday of a lifetime, make home improvements, clear debts or simply enjoy your retirement.
Everybody’s financial circumstances are unique, and equity release isn’t always the most appropriate option, which is why you should always take the time to consider your choices carefully and speak to an independent equity release adviser in Belfast before making any decisions regarding your home.
What Are the Main Types of Equity Release?
There are two main types of equity release:
Lifetime Mortgage
A lifetime mortgage allows homeowners over 55 to release tax free cash from the value of their property.
The amount that can be borrowed depends on the age of the borrower and the value of the home.
This secured mortgage doesn’t require repayments, although you can choose to make them if you wish and then keep the balance at the amount borrowed.
The loan is repaid through the sale of the property, which only happens once the last borrower moves into long-term care or passes away.
There are no negative equity guarantees in place to ensure that you never owe more than the value of your home.
You will retain the right to live in the property for as long as you wish.
Home Reversion Plan
This allows you to sell part or all of your property to a reversion provider for below the market value, in exchange for tax-free cash that can be given in the form of a one-off lump sum or smaller, regular payments.
- You still maintain the right to live in the property rent free until you move out, go into residential care or pass away.
- No interest rolls up on this plan.
- If you keep a share of the property, you can benefit from any home value increase.
- You can reserve a portion for your family inheritance.
If you have any questions or want to learn more about equity release in Belfast, contact us today; one of our knowledgeable advisors will be happy to help.
Disadvantages
- The value of your estate will decrease, resulting in reduced inheritance; however, you may have the option to protect an element of equity if you wish.
- Your entitlement to certain state benefits may be affected.
- There may be financial penalties if you wish to repay or end the mortgage plan early.
- A Lifetime mortgage loan amount increases with compounded interest if the interest is not paid
- It is difficult to buy back any amount of your property sold with a Home Reversion plan
FAQ’s
What is equity release?
Equity release is a way for homeowners over the age of 55 to tap into some of the wealth that has accumulated in their property and release tax-free cash without having to move. This is particularly appealing for those who are facing a pension shortfall, have sudden unexpected expenses or are simply looking for a way to free up some money to do with as they wish. One of the many perks of equity release is that there is no requirement to make monthly repayments unless you want to, and the loan is repaid in full once you go into long term care or pass away.
Who is suitable for equity release?
There are certain conditions that borrowers must meet in order to be a suitable candidate for equity release.
- Be aged over 55 for a lifetime mortgage or over 65 for a home reversion plan (joint applicants both must be over the minimum age)
- You have to be the owner of the property.
- The property must be your main residence.
- The property must be in reasonable condition and over a certain minimum value.
- You need to be mortgage free or only have a small mortgage left on the property which must be repaid from the money you release.
What are the benefits of equity release?
Just some of the benefits of equity release include;
- Tax-free cash that can be received as either lump sum or smaller, regular payments depending on the plan.
- Equity release is a product protected by ‘security of tenure’ which means that you are guaranteed the right to remain in your home for life, or as long as you wish.
- If you choose not to, then you don’t need to make any monthly repayments. The loan is repaid when the last remaining borrower goes into long-term care or passes away.
- Plans with a no negative equity guarantee ensure that you will never owe more than the home is worth.
- You may continue to benefit from increases in the property’s value.
Equity release is transferable, so you are still able to move to a suitable alternative property in the future.
At Bower, we will understand your unique circumstances and advise you to ensure you are receiving the best plan to meet your objectives. There are plans that allow you to make voluntary repayments and move home, subject to lender criteria. However, early repayment charges may apply in certain circumstances.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care. Equity release will reduce the value of your estate and your entitlement to means-tested benefits now or in the future, and impact long-term care funding.
Bower Home Finance provides independent, impartial whole of market advice with an award-winning customer service experience. Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed and your plan completes, would a typical advice and administration fee of £1,495 be payable.
If you are considering equity release, we strongly recommend that you read our equity release page carefully and talk to one of our specialists before deciding if you wish to proceed.
To find out more about any of the products and the service we provide, please call us on freephone 0800 411 8668, request a call back, email us, or join our live chat you’ll find on our website.
Please be aware that equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. All features and risks are thoroughly explained in your free personalised illustration.
