Equity release has faced a lot of negative attention over the years, leaving many people in Manchester wary of considering it. Even though this is the case, much of this negativity stems from the way equity release was previously managed.
Thankfully, with the introduction of new regulations by the Financial Conduct Authority and standards set by the Equity Release Council, the public perception of equity release is improving, and more people are considering it as a viable option.
Despite this, there are still mixed opinions about equity release online, leading some to question whether it’s the right choice for them.
In this article, we aim to provide an in-depth look at the pros and cons of equity release in Manchester, so you can make an informed decision about whether it’s the right option for you.
At Manchestermoneyman, we believe that taking out an equity release plan can offer many advantages for later life applicants. One of the biggest benefits is the ability to access the equity that has been sitting within your property.
Our equity release plan in Manchester is offered through a lifetime mortgage, with two options available: tax-free lump-sum or tax-free drawdown facility. With the lump-sum option, you receive a one-time pay-out in full. With the drawdown facility, you can withdraw equity as and when you need it.
When it comes to repayments, you have options. During the lifetime mortgage, you will have monthly interest payments, but you do not necessarily have to make them.
Many choose to let the interest roll-up, leaving them without monthly payments and more expendable cash. On the other hand, making payments can be beneficial if you wish to leave an inheritance for a family member.
You can also rest easy knowing that you are protected when you choose to work with us. In the past, equity release has had a negative stigma, but we have put safeguards in place to ensure that our later life customers are protected.
We are members of the Equity Release Council, which has product standards that provide additional consumer protection.
Another advantage of our equity release plan is that it can be a lifeline for interest only mortgage prisoners.
Many applicants in the 1990s and early 2000s may have taken out an interest only mortgage, but now find themselves unable to remortgage or access other options due to changing affordability checks.
With our equity release plan, you can pay off the final capital balance and take out a new mortgage, releasing the equity that has grown over time.
With a lifetime mortgage, you do not need to worry about a separate repayment vehicle, as the sale of your home will repay the balance either when you have died or moved into long-term care.
Additionally, with our no negative equity guarantee, you will not owe more than what you borrowed, providing peace of mind for you and your estate.
As with any mortgage, there are also downsides to equity release in Manchester. One major negative aspect is that allowing the interest to roll-up can gradually reduce the equity in your property.
This means that when it comes time to sell your property, whether after your passing or moving into long-term care, there will be a higher balance to repay, leaving little or nothing for inheritance.
For many, leaving an inheritance is important, and this may be a deal-breaker for them. You may have the option to ring-fence a portion of your equity initially, although there may not be much left after this.
Moreover, as previously mentioned, it’s not always certain that you will pass away before your property is sold. You may need to move into long-term care, and if there is enough equity in your property and you have made interest payments, your care costs may be covered.
Unfortunately, if the interest has rolled-up and there are not enough funds from the property sale, it may not cover the costs of your required care.
Determining whether equity release in Manchester is the right option for you depends on your personal circumstances and goals. Unlike traditional mortgage lending, equity release can only be obtained through a later life mortgage broker in Manchester, after receiving equity release advice.
This is because while equity release can be a great option for some, it may not be suitable for everyone and can end up being a costly mistake. With the help of a later life mortgage advisor, your lifetime mortgage will be customised to your specific needs and plans.
Equity release in Manchester and lifetime mortgages are highly adaptable and can be tailored to meet your goals. Your mortgage advisor will also consider alternatives, such as conventional or unsecured lending, before discussing equity release as an option.
To determine which option, equity release or an alternative, is more suitable for you and your future plans, seeking expert equity release advice in Manchester from a qualified and professional later life mortgage advisor is recommended.
By examining your current situation, the advisor can provide the best possible guidance on how to proceed.
Taking out equity release advice in Manchester can help you avoid future pitfalls, as your later life mortgage advisor can plan around future decisions, such as ring-fencing inheritance, as previously discussed.
In addition, equity release advice in Manchester can be beneficial for younger borrowers. A later life mortgage advisor can examine holistic or phased entry into later life lending, and offer over 50’s mortgages.
These can include term interest only, retirement interest only, or other conventional mortgage options, for those who may not meet the age requirement for equity release in Manchester or are better suited for an alternative.
Your later life mortgage advisor prioritises your needs and will recommend the best option for achieving your goals while ensuring that you are secure and protected in the later stages of your life.
To understand the features and risks, ask for a personalised illustration.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.
Have you ever had those moments where you’ve purchased a cheap flight online and then tried to make a small change to your booking? You’d expect these things to be fairly straightforward, but they end up taking too long, being far more complicated than necessary and costing more than you’d initially planned for.
It is a really bad example of customer service and can cause you unnecessary stress along the way. Something that was meant to be fun, has now had that fun taken out of it because of your initial bad experience upfront. In these cases, you have the option of going the route of using a travel agent to help you with bookings, reducing the stress of the process.
These same stresses and worries appear in the world of mortgages and much like the travel agent, this is where a dedicated and hardworking mortgage broker in Manchester is often able to come in and take the weight off your shoulders.
Without a doubt, buying a new home is one of the biggest financial commitments you’ll ever make in your life. With this in mind, utilising the experience and industry knowledge of a trusted mortgage advisor in Manchester will save you from many of the problems present with either going direct or trying to go it alone, without anyone to back you up.
Usually, the fixed rate that you might see advertised on tv or the internet, is not the final rate. As with all advertising, it’s there to get your attention and make you want to see more. Generally speaking, these deals are aimed at customers with lots of equity, perfect credit ratings, employed, and a brilliant track history of paying. There will almost always be a more attractive deal out there, but that doesn’t mean that’s the best for you personally or financially.
You must also bear in mind that when going with this specific lender, you only have access to their products and their heavily biased advisors. Others to be careful with are estate agents and price comparison sites, wherein the latter only displays the deals these high street banks want you to see, whilst the estate agents are incredibly biased and pushy, known to break the law in order to make money from you. You can read more about the sales tactics of estate agents in our article on the topic.
As an open & honest mortgage broker in Manchester, we only ever have your best interests at heart. We are able to offer a wide range of products from different, sometimes more niche lenders, depending on what it is you’re looking to achieve. These deals are often better than the lenders direct deals and also aren’t available going direct either. As well as this, our loyal team of advisors will never try and force anything on you that you don’t want, working purely to support your needs from start to finish.
Getting in touch with a Mortgage Broker in Manchester will allow you to further explore your options and your recommendation will be personal to you and your situation. Also, features such as a fixed rate of interest, offset options or variable rates for flexibility, may be recommended for you.
All products and deals have their own specific rules and criteria. It’s our job to know this criteria inside and out, which is why we will work hard to make sure you’re on the best or at the very least most appropriate path for your personal situation.
If we’ve done our job right, and we have a good track record of doing just that (see our Customer Reviews for testimonials by real customers!), you’ll walk away with a deal that allows you to borrow the amount you’d like, with reasonable interest rates and hopefully having saved both time and money.
We have a long history of helping anyone from first time Buyers in Manchester, to those looking to remortgage in Manchester and even those who require self employed Mortgage Advice. If you would like to take advantage of our free initial mortgage consultation and speak with a mortgage advisor in Manchester, please get in touch and we’ll see how we can help.
Mortgage Protection Insurance is an umbrella term used to explain different kinds of cover available to customers who have taken out a mortgage. This cover got designed to reduce financial concerns for both you and your loved ones, in the event of any unforeseen circumstances that may occur whilst the mortgage process is active.
Here Malcolm has recorded a video to speak to you about the importance of having the correct insurance in place for your situation.
The central message here is due to the coronavirus pandemic; the importance of health and getting insurance is now greater than ever. There are differences in insurance to choose from when it comes to safeguarding you and your family.
Here at Manchestermoneyman, we will be able to compare lots of providers to help find you the best policy for your circumstances. The following insurance policies that we can offer to you are:
For further clarification, get in touch and speak with one of our knowledgeable Mortgage and Protection Advisors in Manchester today. Our team will always be at the other end of the phone or email when you need to discuss.
Life insurance is an insurance policy that reduces the financial impact on your loved ones in the event you or another joint policyholder pass away. Our Mortgage Advisors in Manchester can run through all the different types of Life cover accessible to you and advise the most suitable plan for you.
Critical illness cover is an insurance policy that covers serious illnesses detailed within a policy. Usually, these will include Stroke, heart attack, certain types and stages of cancer, and more. However, you are unlikely to be covered for pre-existing health issues you knew you had before taking out the insurance. As mentioned, the specific illnesses covered and not covered will be detailed in your policy.
The most significant thing is that the benefit gets paid if you fall victim to one of several specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of conditions covered vary from company to company; that’s why this type of insurance cannot be solely price-driven, and seeking Specialist Mortgage Advice in Manchester is recommended.
In practice many businesses will offer Life and Critical Illness Critical cover as a combined policy and would usually payout on the “first event,” namely whatever happens first – either death or a severe illness – the payout is made. They could also get written on a single or joint life basis.
Whereas Life and Critical Illness cover pay out a lump sum, Income Protection pays out a monthly sum intended to replace your wages in the event of you being unfit to work. In contrast to the Critical Illness cover, there are no limitations on the illnesses or injuries covered, the only factor being whether they make you unfit to work.
There are, however, restrictions on how much you can cover and how quickly benefits would start to get paid. Such As Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies get written on a single life basis.
You can also combine Life Insurance, Critical Insurance, and Income Protection, into what’s called a menu plan. The providers do give you a discount each time you add a benefit in, and that can be a cost-effective way of taking cover.
With a Menu Plan, you can mix and match a range of cover and benefits to tailor a plan that suits your needs and budgets. We strongly advise all our customers should the worst happen, least you have covered yourself and your family, to find out more speak to one of our mortgage Advisors in Manchester today.
The least common of the mortgage protection policies but can often be useful – especially for those with young households. These plans can get taken to Life and/or Critical Illness Cover, and get underwritten on the application in the same way.
However, in contrast to the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Consequently, it can replace the payment of the primary worker for several years, dependent upon a particular client’s circumstances and, because of this would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.
Many people have one or more of the different types of policy, and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. However, affordability plays a massive part, whilst it would be fantastic to cover yourself for every potential opportunity.
Our Mortgage Advisors in Manchester are here to discuss with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. To find out more, give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists Advisors in Manchester today.