The reason people opt for an Equity Release is to turn the equity that is in their home, into a lump sum of cash.
Once you have released this money, you are able to use it for pretty much everything, with common options including to pay off an existing mortgage payment, to pay off any unsecured debts that may have built up over time, to fund any potential home improvements or modification, as well as to pay for any planned holidays, car payments and things like that.
Equity Release will most likely be presented in the form of a Lifetime Mortgage.
The way that this works, is either once you have reached the end of your mortgage term or even if there are still repayments left, you have the option to release your equity through a Lifetime Mortgage. Providing this is your main residence, you will be able to take this mortgage out, selecting a portion of the equity for future family inheritance, if this is something you’d like to do.
You have the option to make monthly payments back to lender, however a popular choice with homeowners is to simply let interest stack-up. The loan only becomes repayable once you die or have to move into long-term care, being declared unfit to live on your own.
When looking at this for a mortgage option, it’s important to remember a few things. First of all, you have to be at least 55 years old to qualify. Your age, as well as the value of the property can have an effect on how much you are able to withdraw from your properties equity.
For additional Mortgage Advice in Nottingham regarding Equity Release, you may benefit from seeking the advice of a Specialist in the field. Please Get in Touch with a Mortgage Broker in Nottingham and we will see how we are able to guide you.
As mentioned above, there are many different reasons why somebody may look to take out a Lifetime Mortgage for Equity Release. Some of these reasons include, but are not limited to:
Even if your mortgage term is still ongoing, you may still be able to take out a lifetime mortgage and use the equity that is in your property to pay off the balance that is remaining on your mortgage. Your affordability may be affected by the fact you still technically already have a large outgoing to pay for, which could limit the amount a lender may allow you to borrow.
Secured debts include things like a mortgage repayment, with your debt being secured against an asset, which in this case would be your home. Unsecured debts include things along the lines of personal loans, wherein the debt is not secured against any particular asset. In times like these, people often choose an Equity Release to cover the costs of any unsecured debts that may have built-up.
Some people may look at taking out an Equity Release for the purpose of Home Improvements, Modifications or Alterations. This process more or less works the same as Remortgaging for the same purpose, with the only difference being that a Remortgage to Release Equity will likely place you on a Repayment Mortgage. Regular Equity Release will instead place you on a Lifetime Mortgage. Standard reasons for using this include home offices, conservatories, new living rooms and kitchens, garden improvements, extensions and a new or additional garage.
An Equity Release can pretty much be used for any other purchases you may wish to make once you have released some equity from your property. This can be anything from buying a new car, a holiday or two away, a wedding and literally anything else you can think of. At the end of the day, the equity in your property is yours and you can spend it however you see fit.
If you would like to release some equity from your property, Get in Touch and take advantage of speaking to a Mortgage Advisor in Nottingham today.
With over 20 years of knowledge experience within the mortgage industry, we have worked hard to help thousands of customers achieve their dreams of owning a property and obtaining a mortgage, doing everything we can to help them overcome any mortgage hurdles that have arisen. We do not have any ties to any estate agents, banks or building societies, working hard solely for you, our customer.
As a well-practiced and dedicated Mortgage Broker in Nottingham, our brilliant team are able to look through 1000’s of different mortgage deals, in order to try and find one that works best for your individual and financial situation.
Throughout your mortgage journey, we’ll offer continuous guidance and support, ensuring we answer any questions you have as best as we can. We even have the ability to assist with other services when necessary, such as referring you to a trusted conveyancing solicitor.
Our mortgage team are very proud of the level of service we provide here at Nottinghammoneyman. This is showcased in the Genuine Customer Reviews that we receive on a regular basis.
Your free mortgage consultation with us will last around an hour. During this consultation, your dedicated Mortgage Advisor in Nottingham will get to learn a bit more about your personal and financial situation.
Once your consultation is finished, your Mortgage Advisor in Nottingham will go away and try and find you a perfect mortgage deal tailored to your circumstances. If you love the mortgage offer that they’ve picked out and want to continue, the next step is to submit your mortgage application!
Our mortgage process consists of multiple different steps: 1. Once you get in touch, we will have you carry out our Fact Find so that we can get a bigger picture of your mortgage situation. 2. You’ll undergo your free mortgage consultation, then your dedicated Mortgage Advisor in Nottingham will begin searching for mortgage deals that are tailored to your circumstances. If we find you an offer that you are happy to proceed with, we can get the ball rolling with your mortgage application. 3. We will perform a credit check on you in order to obtain an agreement in principle. Furthermore, we will get some evidential documents from you in order to back up your mortgage application. 4. We will submit your mortgage application and wait for a formal mortgage offer to be issued.
As a Mortgage Broker in Nottingham, we always advise applicants to obtain an Agreement in Principle before viewing properties. Firstly, you’ll need an Agreement in Principle to make an offer on a property. Secondly, having one in place could put you in a position to negotiate prices.
An Agreement in Principle typically lasts for 30-90 days. This timeframe may change depending on the lender that you are using.
If your Agreement in Principle expires, you can easily renew it by getting back in touch with your Mortgage Advisor in Nottingham or your lender.
It’s possible to obtain a second mortgage; as a Mortgage Broker in Nottingham, here are the most common reasons we see for people wanting a second mortgage:
– Debt consolidation
– Home Improvements
– Buy to Let
– Other, e.g. for a Family Member, Holiday Home, etc.
High street mortgage lenders will usually ask for a minimum of a 5% deposit. This percentage may be higher depending on if you’ve had previous bad credit issues.
If you’ve had bad credit issues in the past, you may find it a little harder to get a mortgage, but that isn’t saying you still can’t get one!
Lenders may ask for a slightly higher deposit if you’ve had bad credit in the past. Some lenders may ask for a deposit of around 10-15%.
If you are able to submit at least one year’s of accounts, the more likely you are of being able to obtain a mortgage. Most of the lenders that we use look at your salary plus dividend to calculate the maximum mortgage amount. Others may go off your net profit, it all depends on the lender.
Your free mortgage consultation in Nottingham will usually last around an hour. Following the consultation, we can turn around an Agreement in Principle for you within 24-hours. Now it’s just the case of submitting your mortgage application. A formal offer can take around three weeks on average to come back.
An initial telephone call where we can take some preliminary details and find out what you're looking to do.
Obtain a Mortgage Agreement in Principle to provide support for any future offers you make. You're now ready to start searching for a property.
Make an offer on the property you want! Our team will finalise any details and find you the most suitable deal!
The final step, taking our mortgage advice. We'll make certain that this is the best deal you can get. You will continue to have our support right until you get the keys.
A telephone call where we can take some initial details and find out about your plan of action.
Enjoy finding a property!
Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.
Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.
