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Equity Release Harrogate

We have an Equity Release advisor ready to deal with your inquiry. Find out more about Equity Release...

Equity release can be a great way for homeowners over 55 to access the capital they’re built up in their property. There are a number of providers that offer products for you in Harrogate.


This form of retirement finance is showing no signs of slowing down, so we’ve put together this guide to equity release for the residents of Harrogate and surrounding areas. Here, you’ll find out how widely available it is, how it works and how to find the right provider for your needs and circumstances. 

At Later Life Money we have access to the whole of market and act on your behalf ensuring your best interests are served and the most suitable lender is suited to you and your needs.

How does Equity Release work?

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Equity release works the same across the UK, including Harrogate. The amount of tax-free cash you can access with a lifetime mortgage depends on two main factors…


1. The age of the youngest applicant
2. The value of your home

 

The amount of equity you can release will be a percentage of your home’s value. Providers have their own ceiling on the maximum loan, with anywhere between 20% and 50% being typical. Higher borrowing is possible, but speaking to an equity release broker who knows exactly which providers offer higher loan-to-value ratios is the best way to find these deals. An example of this would be if an applicant has impaired health, it may be possible to secure enhanced rates and products.

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Is an Equity Release secured loan right for you?

On application for equity release, the lender would instruct a valuer to independently value your home which is usually free to you the client. 

 

Another reason why specialist, independent advice is advisable is that these are complex products and as the name suggests are designed for a lifetime. 

The loan will accrue interest over the term. You have options to pay this interest off in a number of different ways that vary from provider to provider. The flexibility of modern products on offer provide you with choices and options. Using an independent advisor for a recommendation will ensure your needs and objectives are met.

 

The debt is only payable in full when the last surviving homeowner dies or is taken into long-term care. At this point, the family have 12 months to sell the property and repay the lender. The remaining capital in the home will then be returned to you the client if in care or to the estate for the beneficiaries. Should the property increase in value during the term it would benefit you or your estate.

 

Should the family or beneficiaries decide to take ownership of the property then they can raise the money, pay off the outstanding balance and gain ownership.

What is equity release?

 

There are two options if you are considering Equity Release:
 
● Lifetime mortgages: Homeowners over 55 take out a mortgage secured on
your main residence to access the capital built up in their property in the form
of a tax-free loan, whilst retaining ownership of the home. This can be used for
any legal purpose and is not repayable until the last surviving homeowner dies
or goes into long-term care. You can choose to make repayments if you want
to or allow the interest roll-up.

This is a loan that can be paid out in instalments, as a lump sum or a combination
of both. This feature can ensure that you do not pay any more interest than is
absolutely necessary.
You can also choose to protect a percentage of the value in your home for
your beneficiaries.
We can advise on this type of product for people in Harrogate.

● Home reversion plans: This type of equity release involves selling all or a
percentage of your property to a home reversion provider in exchange for a
lump-sum or regular instalments. You can continue to live at the property as a
co-owner but are likely to only receive 20-60% of your home’s market value.
The minimum age for this product is typically 65. This product represents less
than 1% of the market.
Since home reversion plans involve relinquishing full or part ownership of your
home, most experts who advise on retirement lending in Harrogate don’t
recommend this type of equity release. They will likely suggest that you
consider applying for a lifetime mortgage instead.
With the above in mind, we at Later Life Money have taken a decision not to
advise or recommend this product.

A lump-sum mortgage

 

 

With this type of lifetime mortgage, the homeowner receives the initial fund as
a single lump-sum payment. The interest payments are not mandatory during
the term but are often optional. The debt only needs to be paid in full at the
end of the agreement. No further funds are available after the initial amount is
released.

A lifetime drawdown mortgage

This product is also referred to as a flexible lifetime mortgage. These plans
allow customers to take an initial amount of capital at the outset and draw
down the rest of the funds as and when they choose to do so. Interest only
accrues on the money that has been drawn down. This will ensure you pay
no more interest than that which is necessary.

An income lifetime mortgage

Homeowners can claim a regular income from their equity release by taking this type of lifetime mortgage.

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How much equity can I release?


This varies based on your circumstances, age, property value and plan
chosen




Are there any fees?


There are fees for valuation, arrangement, your solicitor and advice.




Will I pay tax on the cash released?


No, any cash released is tax free.




Would this affect my tax position or state benefits?


Depending on your personal circumstances, these could be affected so please discuss matters with your equity release adviser.





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In addition to the main types of equity release, some providers in Harrogate will allow homeowners to enter into enhanced agreements, depending on their circumstances. For e.g. you could access a product with an enhanced high loan-to-value ratio and/or reduced interest rates if it can be evidenced that you’re in poor health and have a lower life expectancy.

 

For these types of agreements and the features attached, a specialist equity release broker is recommended as they have the knowledge and expertise to access the providers who are best positioned to help a client with your exact needs and circumstances. They can offer personalised advice and support each step of the way.

Who are the best equity release providers in Harrogate?

The leading equity release providers in Harrogate include Aviva, Canada Life, More2Life, Hodge, Legal & General, Pure Retirement, Liverpool Victoria, One Family and many more, but approaching one of these companies directly is not recommended. If you were to do that, you would only have access to their particular products. 

 

This could potentially mean missing out on higher loan-to-value ratios and lower interest rates elsewhere. Unless you have access to the entire market, including the niche providers you won’t find through a Google search, you can’t be sure you’re getting the best product or whole of market advice.

 

The best equity provider for you isn’t necessarily the biggest name in the marketplace or the one with the highest star rating online, it’s the provider who’s best positioned to offer the best solution to match your exact needs, objectives and circumstances.

 

The right whole of market broker will be able to find that provider for you, and this is where we come in.

 

Not all equity release advisors are the same. Many advisors will only work with one lender or from a restricted panel of lenders. Whatever your specific circumstances, we at Later Life Money can search the whole of the market to find the package for homeowners in Harrogate.

Application FAQs

Take a look at our most frequently asked questions around applications.

Money FAQs

Take a look at our most frequently asked questions around money.

Do I still own my home?


Yes and you live there until you move into long-term care or pass away.




Can I move?


With a portable plan, you can take the plan with you if you move.




Can I end my plan early?


Some plans allow you to repay the whole loan and interest – please note there may be an early repayment charge which can be expensive




Can I borrow more if my property value increases?


Depending on your plan, you may be able to borrow more based on lending criteria and interest rates – a new valuation will be needed.





Repayments FAQs

Take a look at our most frequently asked questions around money.

How much equity can I release?


This varies based on your circumstances, age, property value and plan
chosen




Are there any fees?


There are fees for valuation, arrangement, your solicitor and advice.




Will I pay tax on the cash released?


No, any cash released is tax free.




Would this affect my tax position or state benefits?


Depending on your personal circumstances, these could be affected so please discuss matters with your equity release adviser.





Get equity release advice from an expert today

Call 03303 830 038 or make an enquiry online. A no-obligation consultation or initial chat with one of our equity release
advisors will not cost you a penny, but their advice could help you save time, money and potential disappointment in the long run.