Equity release has become widely popular among homeowners aged 55+ to access the value of their properties. Adverts on the TV try to promote taking out cash from your home instantly, without getting any sort of financial advice. Don’t do this!

Prior to making any choices, it is crucial to seek reliable equity release advice in Newcastle to determine whether taking money out of your home aligns with your unique circumstances.

Equity Release Considerations

Let’s take a look at the pros and cons of releasing equity in Newcastle so that you can decide whether this is the right option for you. It is important to consider all of the options that come with equity release and speak with a professional before making any decisions.

Why Do People Release Equity in Newcastle?

We have seen many different reasons why people choose to release equity from their homes in Newcastle. Some of these reasons include:

  • Repay an outstanding mortgage balance
  • Pay off debt
  • Supplement monthly pension income
  • Gift deposit to family members or friends
  • Invest in a new property
  • Settle a divorce later in life
  • Make a big purchase, such as a car or a boat

Just like any type of mortgage in Newcastle, the amount that you can borrow when releasing equity can depend on several factors. This includes your age, whether you have a partner or not or are in good health. Your credit score is not usually factored into how much you release to your home.

Understanding Equity Release in Newcastle

You must be over the age of 55 to qualify for an equity release mortgage in Newcastle. Your property, which needs to be your main residence, has to be valued at £70,000 or more. If your property is in joint names, the youngest applicant must be 55 or older.

When releasing equity from your home, you will need to take out a new mortgage on your property. This may come as a lifetime mortgage (most recommended) or a home reversion plan.

Pros of Equity Release in Newcastle

Flexibility is a key feature of equity release plans, allowing you to access funds either as a lump sum or in smaller amounts whenever needed. Opting for smaller chunks can result in interest savings.

Contrary to a common misconception, the vast majority of equity release plans (99%) allow you to retain ownership of your property. The current market is highly regulated and offers customer-friendly products.

A significant benefit is the “No negative equity guarantee,” assuring you that you’ll never owe more than your home’s value. All the equity release plans we provide include this guarantee.

You have the freedom to choose from various payment options, including monthly payments or none at all, depending on what suits your individual situation. We’ll assist you in making the right decision by offering recommendations based on careful calculations.

When recommended as part of your financial or pension planning, an equity release product can play a role in inheritance planning. If this is the case, we will happily collaborate with your financial advisor in Newcastle.

Cons of Equity Release in Newcastle

Before committing to an equity release plan, it’s crucial to seek excellent advice regarding later-life mortgages. We are proud to be amongst the few businesses in the UK able to offer mortgage advice on the complete range of age 50+ mortgage products.

Equity release should be a last resort. Your later-life mortgage advisor in Newcastle should consider all other age 50+ lending solutions before suggesting an equity release plan, as it should always be considered a last resort. Alternative product types include regular mortgages extending to age 85+, over 50’s interest-only mortgages, retirement interest-only mortgage options, and lifetime mortgages/equity release plans.

Releasing tax-free cash from your home may affect any means-tested benefits you currently receive. If relevant, our equity release advisor will guide you through this matter.

Early repayment charges will usually apply during the first ten years of a plan. As previously mentioned, equity release should not be recommended lightly, and your equity release mortgage advisor in Newcastle will assess other age 50+ mortgage products that may be more suitable.

Equity Release in Newcastle – Things to Consider

Careful consideration is essential when determining the suitability of equity release, taking into account your financial goals and personal situation. While it presents valuable opportunities to access tied-up funds in your property, it’s crucial to assess its impact on inheritance, long-term interest accrual, and eligibility requirements.

Seeking advice from a qualified professional, such as our team, is vital to gain a comprehensive understanding of the risks and benefits linked to equity release. With expert guidance from our specialist equity release advisors in Newcastle, you can make an informed decision that aligns with your financial objectives.

We strongly recommend speaking with a later-life mortgage advisor in Newcastle before making any decisions. We can look at your individual circumstances, explore alternative solutions, and provide guidance throughout the process, ensuring you make well-informed decisions.

You can book a free mortgage appointment with our later-life mortgage advisors in Newcastle by simply following our online booking process. Here you can select a date and time for your free appointment.

Date Last Edited: August 1, 2023