Equity Release in Newcastle

Equity release is generally available to homeowners aged 55 and over, although individual providers can set their own minimum age requirements.

For a joint application, eligibility will usually be based on the age of the youngest homeowner.

Age can also influence the amount you are able to release, with a greater percentage of the property value potentially available as you get older.

Your property and any borrowing already secured against it will also form part of the assessment, so meeting the minimum age does not guarantee that every product will be available.

Yes. Equity release allows you to access money from your property while continuing to live there, rather than requiring you to sell and move elsewhere.

With a lifetime mortgage, you can normally remain in your home for the rest of your life, subject to the conditions of the plan.

These can include keeping the property properly maintained and having suitable buildings insurance.

Your mortgage broker can explain these conditions before you proceed, including any responsibilities you will have as the homeowner.

You remain the legal owner of your property when taking out a lifetime mortgage.

The provider secures the borrowing against your home rather than taking ownership of it.

This means you continue to be responsible for the property, including its upkeep and any requirements set out within the terms of your plan.

Ownership usually remains with you until the property is eventually sold.

This commonly happens after the last homeowner dies or moves permanently into long-term care.

The amount you could release will depend on factors including your age, property value and the lending criteria of the provider.

The type and condition of your home can also influence what is available.

Certain providers may consider health and lifestyle information, potentially allowing a higher amount to be released in some circumstances.

Even if you own your property outright, you cannot normally release its full value.

Providers set limits on the percentage they are prepared to lend, leaving the remaining equity within your home.

Money received through equity release is normally tax-free because it is borrowing secured against your property rather than taxable income.

Depending on the product, you could receive the funds as one lump sum or access smaller amounts when required.

The way you subsequently use the money is important, as investing it or earning interest could have separate tax implications.

Holding the released funds as savings could also affect entitlement to certain means-tested benefits, depending on the amount involved and your circumstances.

Equity release can be used to repay an existing mortgage. In fact, borrowing already secured against your home will normally need to be cleared when the new equity release plan completes.

You could use part of the money released to settle your outstanding mortgage, with any remaining funds then available for other purposes.

The balance you currently owe will therefore affect how much money you ultimately receive.

Mortgage advice can help establish how your existing borrowing compares with the amount you may be able to release.

Monthly repayments are not normally required with a lifetime mortgage.

Instead, you can usually allow the interest to be added to the outstanding balance and repaid when the plan ends.

Many products also give you the choice to make voluntary payments.

Doing so could reduce the amount of interest that builds up and help preserve more equity within your property.

Repayment allowances differ between providers, so this is an important product feature to compare if you want greater control over the balance.

Taking out equity release does not necessarily prevent you from moving in the future.

Many plans are portable, meaning they can be transferred to another suitable property.

Your provider will need to assess the new home before agreeing to the transfer.

Its value, construction, condition and other property characteristics may all be considered.

If you are downsizing, you could also be required to repay part of the outstanding balance.

This is worth considering if moving home forms part of your plans for later life.

Equity release will usually reduce the value of the estate you leave behind, as the borrowing and any interest owed must eventually be repaid.

Some plans offer inheritance protection, allowing you to ring-fence a proportion of your property’s future value for beneficiaries.

Making voluntary repayments may also help control how much the balance increases.

If leaving an inheritance is particularly important to you, a mortgage advisor can take this into account when looking at the amount you want to release and suitable product features.

You can usually repay equity release before the plan comes to an end, although an early repayment charge may apply.

The amount charged will depend on the provider and the terms of your product.

Many lifetime mortgages allow you to repay a set proportion of the balance each year without a penalty.

This can help reduce the amount owed and limit the interest that builds up over time.

If you think your circumstances could change in the future, repayment allowances and potential charges are worth comparing when choosing a plan.

When the last homeowner dies or moves permanently into long-term care, the equity release plan will normally become repayable.

The property is often sold, with the proceeds used to clear the outstanding borrowing and interest.

Following a death, the executors of the estate will usually work with the provider to arrange repayment within the required timeframe.

Family members may be able to keep the property if the balance can be settled using other funds.

Any value remaining after repayment will belong to you or form part of your estate.

Equity release is regulated by the Financial Conduct Authority (FCA), with rules covering how these products are recommended and provided.

Providers that are members of the Equity Release Council offer plans with additional safeguards, including a no negative equity guarantee.

This means you will not owe more than the value of your home, subject to the terms of the plan.

These protections are important, although they do not remove the costs or long-term implications of equity release.

Interest can build up over time and reduce the value remaining in your property, so these factors need to be considered alongside the safeguards offered by the plan.