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How Much Money Can Equity Release Offer?

By | Blogs

When trying to find the right equity release plan, the amount of money you can release is often the most important factor. We can talk you through every equity release plan and make sure that you receive all the specifications you desire.

Essex Equity Release work with a number of providers to provide equity release plans suitable for every individual.

How Much Can You Borrow?

The number of people using equity release plans is on the up and they are continuously becoming more and more affordable for each client. Whilst there is not an exact sum of how much you can borrow with each equity plan, homeowners are borrowing, on average, 30.8% of their housing wealth.

This is a massive amount of money for every homeowner and can help you with a wide range of financial situations, as well as funding holidays and getaways in later life. Equity is available to all homeowners over the age of 55 and the later in life you take out equity, the better your deal will usually be. With such a large sum of money available, this is a route you should always consider.

Considering Equity Plans

Additionally, more people than ever are also using equity plans to improve their finances. Since 2017, there has been a rise of over 4,000, increasing from 16,805 up to 21,490 new plans being agreed. This includes 38,912 different households using equity release products, demonstrating a massive increase in the number of people using equity.

It is never too late for you to use equity release plans. Even if you are already financially stable, equity plans can still be beneficial and will ensure you have any finances you need at any point in your life. In total, over £390 million has been released through equity plans within the space of a year.

Rising Equity Release Products

In correlation with the number of homeowners using equity release plans, there has also been a rise in the number of equity products available. with interest rates also dropping to 5.22% from 5.96% on average over the past two years, equity release has become a very viable option.

In 2016, only 58 equity release products were available. As of August 2018, this has more than doubled, with over 139 products now available on the market. With so many products available, this gives every individual the opportunity to find suitable equity release products and gain as much money as possible from equity release.

Assist With All Finances

Finances gained from equity release plans can be used for anything you require. One of the most popular uses is helping family and friends to purchase new homes by using their equity release loan. This is shown as over 1.1 million homes in England were bought with a gift or loan from family or friends.

If you have family members who are looking to purchase a property, using equity release plans can be the perfect option to ensure homes are purchased without delays or issues. If you just want the money to improve your own financial situation, this is never a problem and we can always find the perfect plan for your needs.

Contact Us

Essex Equity Release offer a no negative equity guarantee, ensuring any repayments made will never cost more than the value of your home. If you would like to discuss our equity plans in detail, contact Essex Equity Release today. Call us now on 01268 799211 or fill in our contact form to make an enquiry.

An Introduction To Equity Release

By | Blogs

Equity release can be a tricky subject and something many homeowners fail to fully understand. Equity release can be a fantastic option and understanding its benefits is essential. There are many equity options ensuring you can always find the right plan for you.

Essex Equity Release have a huge range of plans available and can always discuss which equity plan would be best for you.

Why Use Equity Release?

Equity release is a fantastic solution for many homeowners and is suitable for more than just unlocking extra cash. As this cash be used for anything, it can help you pay off your current mortgage or prevent you from downsizing your property, as well as making home improvements.

Away from your home, equity release can also be used as money in your retirement or to take several long holidays. There is no limit to what your equity can be used for which is why it gives many homeowners the perfect opportunity if you are struggling with finances or just want extra income.

Equity doesn’t have to be used for yourself either. Whether its financial support for the family or getting a family member through university, you always have free reign.

How Can You Release Equity?

Releasing equity should never be a long or difficult process. When working with Essex Equity Release, we will provide advice every step of the way and make sure your equity plan meets all your requirements. We work with many providers to give you the best possible plans, whilst offering a No Negative Equity Guarantee. This ensures your repayment will never cost more than the remaining value of your home.

We can provide our consultations in whatever way is best for you, including:

  • Email
  • Home Visit
  • Meeting at Local Office
  • Phone Call

We want to make this process as easy as possible for our clients, making sure all paperwork is completed quickly and you never struggle to release the right equity plan. Different plans will give you several outcomes and it is important to understand the criteria and outcome of every plan.

You must be at least 55 years old to release equity from your property. If you choose a home reversion plan, you and your partner must both be 65 or over.

Understanding Lifetime Mortgages & Home Reversions

When releasing equity from your property, there are two types of equity you can choose from. These are lifetime mortgages and home reversions. Lifetime mortgages are the most popular choice when releasing equity as this allows you to retain full ownership of the property. However, this does mean taking out another loan against the value of your property, similar to a regular mortgage.

Lifetime mortgages are often more popular as you do not have to repay the loan until you pass away or move into long-term care. This means there are no repayments until this time and therefore you can enjoy the money until your home is sold.

Home reversions offer a different option to homeowners looking to release equity. Instead of taking a loan out against the value of the property, home reversions allow you to sell all or part of your property to a third party. This means you give up part ownership of your property, whilst still being able to live there rent free until you pass away or move into long term care. When selecting this equity plan, you can choose from receiving a lump sum, monthly payments or both.

Whilst home reversions offer a fantastic option, they are not as popular as you have to sell part of your home. This means when you eventually choose to sell all of your home, you or your family members will not receive as much money.

Find Your Equity Plan

Essex Equity Release offer a number of fantastic equity plans and will work with you personally to provide the advice you need. All equity schemes are recommended by the EEARC and sanctioned by the Equity Release Council, ensuring no monthly payments and No Negative Equity Guarantee. Contact our team to organise a consultation and call 01268 799211 or fill in our contact form to make an enquiry.

Equity Release Myths: Are They True?

By | Blogs

There are many myths surrounding equity release that need to be addressed. Equity release is a fantastic option for many homeowners, as long as you find the right plan. Understanding what equity is and why it could benefit you will disregard any common myths.

Essex Equity Release offer advice and a range of equity plans to ensure every homeowner receives the best plan. We can discuss every option you can take and what the best path is for you and your home.

Inheriting Debt

Whether this is for you to pay out yourself or leaving a debt for your children and loved ones, it is something nobody wants after releasing equity. However, this is not actually a common occurrence and with our plans, you never inherit debt.

Essex Equity Release have many plans available but regardless of the provider we use, you are assured of a no negative equity guarantee. This means, no matter how much you owe your provider, you never have to pay more than the value of your property. As equity only requires repayment when you and your partner move into long term care or pass away, repayment can always be made with the sales from your home.

This also means children will never inherit debt as the equity will be paid off before this could be passed onto family members and friends.

Switching Homes & Plans

A big worry for many homeowners is that you may not want to live here for the rest of your life or you could end up choosing the wrong equity plan. Whilst we try to give you as much support as possible and find the best plan, mistakes can be made and you don’t want to suffer because of this.

Subject to the criteria of each individual plan, you will be able to both move homes or switch to a different plan. People who have previously released equity may find that newer equity plans offer a better deal, interest rate and are less expensive for a homeowner, meaning switching could be beneficial. If this is important to you, we can make sure a plan is always selected with the option of switching equity plans without a fine.

When finding a new home, there are still several rules you must follow in order to avoid early repayment fines or have your equity plan end early. Many equity plans will allow downsizing protection so that, typically after five years, you can downsize properties without a charge and switch house to a smaller property. Some plans will also allow you to move home without any charge as the new property will match the criteria of your current equity plan.

Retaining Ownership

Another big worry for homeowners is that when releasing equity, you will not retain full ownership of the property. This is, again, down to the criteria of your equity plan. There are two types of equity plans available which are lifetime mortgages and home reversions.

All plans that are lifetime mortgages allow you to retain full ownership of your property. Regardless of what equity scheme you select, you can be assured that lifetime mortgages will give you full ownership. This is because lifetime mortgages are a loan against the value of your property, rather than selling part of your home. Home reversions will also allow you to retain ownership, however, this will be part ownership. Home reversions mean you sell part of your property to a third party and when your equity plan comes to an end, part of the property that is sold will pay off the third party.

Monthly & Long-Term Repayments

Monthly repayments are not ideal for many homeowners and all our plans ensure you have no monthly repayments. Whilst you always have the option of making voluntary, partial repayments to pay off some of the equity, this is never a necessity. Using this method will allow you to pay up to 15% of the amount you’ve borrowed every year and also means there are no early repayment charges.

With the majority of homeowners, releasing equity usually means you will make repayments when the equity plan comes to an end. This will only happen when both you and your partner either pass away or move into long term care. Therefore, your house is vacant and can be sold, allowing you to easily repay the equity you have released without any financial issues.

Contact Us

If you would like to begin the process of releasing equity, contact Essex Equity Release today. We can provide a fast response and organise a consultation over the phone, through email or with a home or office meeting to find the right plan for you. Call us today on 01268 799211 or fill in our contact form to make an enquiry.

4 Things To Consider When Choosing Equity Release Plans

By | Blogs

Choosing the right equity plan is essential to make sure you receive the finances you want and don’t have any leftover debt or repayments to make. There are a range of equity plans available and you should always consider several factors before choosing your plan.

Essex Equity Release can discuss all specifications of each equity release plan to ensure you make the right decision. We always provide a personal service to give you the advice you need.

Are You Eligible?

The first thing you must consider is whether you are actually eligible to release equity from your property. You must be a homeowner aged between 55-95, as well as having a property worth a minimum of £70,000. Some plans may have certain criteria which means you cannot be over a certain age or your property must be worth a certain amount of money, which you must adhere with if you want this plan.

Our team will always discuss each individual plan you are interested in and the criteria you must meet to choose this plan. Every company you work with will check eligibility which could also involve health checks, so this is always something you should think about before wanting to release equity.

Choosing Your Funding Option

When releasing equity, there are two funding options you can choose from. These are lifetime mortgages and home reversions. Lifetime mortgages allow you to take out a loan against the value of your property, similar to a normal property mortgage, whereas, home reversions means you sell part of your property to a third party. If you choose home reversions, you will not retain sole ownership of the property like you will with lifetime mortgages.

This is the big difference between the two equity options as, whichever plan you decide, repayment does not have to be made until you have moved out of the property and it can be sold. This means the plan will only come to an end when you and your partner pass away or move into long term care.

If you choose to sell your home early, early repayment will be required unless your criteria allows you to change plans or properties.

Repayment, Debt & Inheritance

For many homeowners, you will want to leave children or grandchildren with inheritance and no debt whatsoever. Thankfully, with our equity plans, you will always receive a no negative equity guarantee, ensuring your repayment never amounts to more than your property value. Therefore, repayments can always be made with no risk of debt.

As repayment is only required when you and your partner pass away or move into long term care, this should never be an issue for homeowners. Many equity plans also allow you to leave an inheritance and protect a certain value from our property so regardless of your repayment amount, inheritance will always be available.

Interest Rates & Changing Plans

Another factor to consider when choosing equity release plans is the interest rates of your plan and whether you will be able to switch plans or properties. The interest rate on your equity plan may not be up to scratch with some of the latest plans that offer a better interest rate.

By choosing a plan with criteria allowing you to switch properties or plans, you retain full control of your property and lifestyle and can always find the best possible equity plan for your needs. This also means in the future, you could find yourself an even better equity plan so when repayment is made, you are left with a lot more money.

Contact Us

If you would like more advice regarding equity release plans or would like to discuss our plans, contact Essex Equity Release today. We can provide a fast response and always discuss your specifications to ensure you select the right plan. Call us today on 01268 799211 or fill in our contact form to make an enquiry.

Should You Choose Lifetime Mortgages Or Home Reversions?

By | Blogs

It is always important to choose the right equity plan and the best option for your circumstances and requirements. This means choosing between lifetime mortgages or home reversions, so it is important to understand their differences, drawbacks and benefits.

Essex Equity Release have dealt with many clients in the past and can always provide you with extensive advice regarding equity plans.

What Are Lifetime Mortgages & Home Reversions?

Lifetime mortgages and home reversions are the two types of equity options you have available when looking to release equity from your home. Both equity types have several similarities, with the main difference being lifetime mortgages allow you to take a loan out against the value of your home, whereas home reversions allow you to sell part of your property to a third party.

Both equity options offer a fantastic choice to all homeowners, as long as you are aged over 55 years old. Both equity plans will allow you to make repayments when both you and your partner have passed away or moved into long term care, meaning your home is vacant and can be sold for repayment. This is when your plan will come to an end.

Lifetime Mortgage Equity Plans

Lifetime mortgages allow you to borrow a percentage of the value of your home. With a fixed interest rate for many plans, this ensures when your house is sold and the plan comes to an end, your repayment will have to be made. With lifetime mortgages, you can choose to make repayments on a monthly basis or let your interest roll-up and make a final repayment at the end of the plan. The latter is often the most popular choice as you don’t have to worry about repayments until the house is sold.

With many of our plans, if you choose to make an early repayment, it could come with an additional charge. This is something you should always consider when choosing your plan so that you find a plan which meets all the criteria you require. Lifetime mortgage loans will continue until you have left the property. The sooner your property is sold, the sooner you will have to make repayments. This could also mean the interest you pay is not as high.

With lifetime mortgages, you should always know how much money will be owed when the house is eventually sold.

Home Reversion Equity Plans

Home reversions are less popular than lifetime mortgages but can still be the best option for you and your partner. Similar to lifetime mortgages, you will be able to stay in your home, rent-free until the property is sold. One of the big differences that works against home reversions is the fact that you sell part of your property.

This means you no longer retain full ownership of your property as part of this will be sold to a third party in order to release equity. Instead of repaying a loan when the property is sold, your repayment will be made as soon as the sale of your home has been completed. As you do not retain the sole ownership, the percentage of the property you do not own will be sold to the third party. The advantage of using this plan is that there is no build up of interest.

What Are The Similarities?

Whilst there are a few differences between lifetime mortgages and home reversions, they are both fantastic options. Both plans ensure you can stay in your home without having to pay rent and the money you receive from releasing equity can be used for any purposes you require.

Additionally, with the plans available at Essex Equity Release, you are assured of a no negative equity guarantee. This guarantees all our clients that the repayment you make will never be more than the value of your property, therefore eradicating any potential debt that could be leftover. Both equity options also allow you to ring-fence a percentage of your property and leave this value for your children or other beneficiaries, so you can always leave an inheritance if this is something you are worried about.

Essex Equity Release have several plans available from different providers, ensuring you can always find a suitable plan for you with a good interest rate that allows you to gain as much money as possible whilst still leaving an inheritance.

Contact Us

If you would like to discuss equity release plans and the choice between lifetime mortgages and home reversions, contact Essex Equity Release today. We can always provide a fast response and talk you through all the plans available. Call us today on 01268 799211 or fill in our contact form to make an enquiry.

Why Should You Consider Equity Release?

By | Blogs

Equity release isn’t the best option for all homeowners, however, it can be a great choice for many. There are several situations where equity is a good option and our advisors can always talk you through your circumstances and if it is a good time to release equity.

Essex Equity Release work with a number of providers to ensure you receive a range of plans when choosing to release equity. We offer advice and support regarding all our plans.

Paying Off Loans & Debts

Equity release is only available to homeowners over the age of 55. With this being said, equity release can be a fantastic option if you still have loans and debts to pay off at this age. Depending on how much equity you release and how large your debts are, equity can often help to pay off all remaining debts, keeping you stress-free until after retirement.

Additionally, if you are struggling to keep up with current repayments and you are having trouble financially, equity can offer the perfect solution to keep your boat afloat with lots of payments. With many plans available, there will often be an option that gives you all the finances you require.

You’re Happy With Your Home

If you don’t intend to move out of your home until you are in long term care or you have passed away, then equity release will always be ideal. Our equity release plans only come to an end once both you and your partner have passed away or moved into long term care.

Whilst some equity plans do give you the opportunity to move home, if you are intending to stay in your current property, receiving a bit of money whilst still living there is always going to be a great choice. This gives you the extra finances you need for a holiday or to help family, whilst always allowing you to stay in your home without regular payments.

Making Home Improvements

Again, if you are looking to stay in your home, equity release can also help you improve the value of your home so when it comes to selling the property, you can receive even more money. With many equity plans, the criteria will allow you to sell your property in the future, although you may have to make an early repayment.

When receiving your money from releasing equity, you have full control of where you would like to spend the money. By receiving the money and investing it back into your home, this can help you make more money In the future, whilst ensuring your property is perfect for you and any family members.

Financial Support For Family

If you have children or grandchildren who require financial support, as a homeowner, you can help all family members out by releasing equity. Whether they want to buy their own home and need money for a deposit or they are looking to go to university and further education, equity can be used to help your family with all their endeavours.

Equity could also be used for other activities such as a family holiday or to give yourself complete relaxation in later life. Releasing equity is a great option for all homeowners and can always be used to reduce the stress and any financial pressure you may be going through.

Contact Us

If you would like more advice regarding equity release and whether it is the right option for you, contact Essex Equity Release. We can provide a fast response to all our clients and talk you through a number of plans that are available. Call us today on 01268 799211 or fill in our contact form to make an enquiry.

Are You Ready For Retirement?

By | Blogs

When you are ready for retirement, finding a suitable way to relax can be difficult, especially if you have a limited amount of funds available. Equity release can bridge the gap for many homeowners, ensuring you always have enough money available for a comfortable retirement.

Essex Equity Release work with a range of providers to ensure you always find a suitable equity plan. We make sure you gain all financial support available with the help of equity plans.

Can You Begin Retirement?

For many people, retirement is the golden age where you can finally relax and enjoy the rest of your life, without having to worry about working for an income. But, without having enough money available to you, it can be difficult to enjoy retirement if you are still stressing over the finances you have available.

Equity release is just one of the ways you can guarantee your financial stability as a homeowner. You must be over the age of 55 if you want to release equity, whilst also owning a home. From this point, you can discuss a range of plans and select the best equity option for your needs. To prepare for retirement, equity release can always give you the financial support you need.

Sufficient Savings

To avoid using equity release plans, homeowners should have sufficient savings available to use during their retirement, whether this is through a pension or money you have saved independently. Recent research showed an individual would need £12,000 per year to comfortably live in retirement. Depending on when you decide to retire, this means you could need quite a lot of money available to you after retirement to live without any stress.

The average pension pot is around just £30,000, meaning if you were to have a retirement lasting longer than just 3 years, this could be very difficult to manage financially. If you are looking to have a long and healthy retirement, equity release could offer the extra finances you need.

How Equity Release Helps

When filling the financial gap in your retirement, equity release can be the best option for many homeowners. With all the plans that we have available, you can be assured of a no negative equity guarantee. This ensures that when repaying your equity, you will never owe more than the value of your home, making it the perfect plan for retirement.

Whilst the retirement plans in place for the younger generation should mean equity release is not required as frequently, for current homeowners, this can be the best route to take. As long as you are over the age of 55, you can begin your retirement as early as possible with equity release. The most popular choice for equity release is to choose lifetime mortgages and this can make sure no monthly repayments are required and you can find a flexible plan for your needs.

This can mean, on top of your retirement funds, you have extra income to use for any situation in your life. These finances can be used for anything you require, including helping out family members or allowing you to have a simple retirement. By using this, you can ease the financial burden in later life and make sure the property wealth you own does not go to waste.

Repayment only has to be made when you and your partner pass away or move into long term care, meaning the house is vacant and be sold, subject to criteria of the plan.

Contact Us

If you would like advice regarding your retirement plans or would like to discuss the equity release options we have available, get in touch with Essex Equity Release today. We can provide a fast response and book a suitable time for an appointment to discuss all your requirements and what equity plans you can choose from. Call us on 01268 799211 or fill in our contact form to make an enquiry.