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Equity Release Sunderland


Sunderland! We have Equity Release advisers that are willing to help you!

Capital can be released from the properties of homeowners aged 55 and up. This can be a great way to gain more funds in retirement, with a number of providers willing to offer products in Sunderland.

Lifetime mortgages can help with retirement financing, and have become more popular with homeowners wanting more money in retirement. With its increasing popularity, we’ve put together a guide for Equity Release, to help those in Sunderland and the surround area become more informed about the topic. In this guide, you will learn what Equity Release is and if it may be right for you.

As a whole of market adviser, we are not tied to a specific lender, and are free to research the variety of products provided by any of the Lenders to find out the best product and lender that matches your own needs and requirements. We will always act with your best interests in mind.

How does Equity Release work?


Is an Equity Release mortgage right for you?

Should you make application for Equity Release, the Lender would instruct a valuer to go out and independently value your home. This service is usually free. 


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 a number of different ways to pay off the interest on this loan, depending on which provider you choose. You may choose from a variety of modern products that offer lots of flexibility. Getting guidance from an independent financial advisor will ensure that your needs and goals are met.


When the last surviving homeowner dies or is put into long-term care, the loan would then be settled in full. The family must then sell the home within 12 months, and repay the lender. The remaining capital in the home will then be divided between you, the client, if in long-term care or the beneficiaries of the estate. If the property increases in value during the loan period, it would be advantageous for you or your estate.


Should any Family member of beneficiary wish to retain ownership of the property, they would need to raise funds to clear the outstanding mortgage/loan amount, at which point they can clear this with the Lender and keep the property. 

What is equity release?


There are two options if you are considering Equity Release:

● Lifetime mortgages: Homeowners over 55 have the option of taking out a mortgage
against their main residence. This provides them with access to the equity they have built up in their property, allowing them to take out a loan without having to pay tax on it. They also get to retain ownership of their home. This type of loan is a way to use equity from your home for any legal purpose and does not need to be repaid until the last homeowner passes away or starts living in long-term care. Additionally, you can choose to make payments on the loan or allow interest to accumulate.

You have the flexibility to have your loan paid out as either as a lump sum, a series of instalments, or a combination of both. This could help you save on the amount of interest that you'd be required to pay.

If you live in Sunderland, we can help you decide on a product that allows you to preserve a certain portion of the value of your home for your beneficiaries.

● Home reversion plans: This Equity release scheme involves selling a portion or all of your property to a home reversion provider in return for a lump-sum or regular instalments. You can still maintain occupancy of the place as a co-owner, however, the amount of value you receive is usually only between 20-60% of your property's overall market value.

Generally, you must be at least 65 years old to make use of this kind of product. It only constitutes a tiny portion (less than 1%) of the market. Since these schemes involve surrendering some or all ownership of your home, most retirement lenders from Sunderland typically do not recommend getting equity in this way. Your financial advisor may recommend taking out a lifetime mortgage as an alternative option for you to consider.

With the above in mind, we at Later Life Money have taken a decision not to advise or recommend this product.

This type of lifetime mortgage provides the homeowner with an initial lump-sum payment that usually does not require any interest payments during its term, though can optionally be repaid. You will not have access to further funds after taking the lump sum, and the sum will be repaid upon your passing or moving into long term permanent health care. 

This product is also referred to as a flexible lifetime mortgage. These plans
allow customers to take an initial amount of capital at th
e 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.

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


A lump-sum mortgage

A lifetime drawdown mortgage

An income lifetime mortgage


In addition to the main types of equity release, some providers in Sunderland 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 Sunderland?

The leading equity release providers in Sunderland 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 Sunderland

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.

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