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Equity Release in Manchester

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How does Equity Release in Manchester work?

Equity is the difference between the value of a property and what you owe on a remaining mortgage balance. The basic function of Equity Release is to turn the equity that is already existing in your home, into a lump sum of cash for you to use.

 

You are able to use this withdrawn cash for anything you’d like, with popular choices including to pay off an existing mortgage payment, to pay off any unsecured debts that have built up over time, to fund any potential home improvements, as well as to pay for any future holidays, car payments and anything else you would like to pay for.

Helping You Find The Value in Your Property!

Equity Release will most likely be found in the form of a Lifetime Mortgage.

 

How this will work, is either once you have finished your mortgage term or even if you still have remaining payments, you can choose to release your equity through use of a Lifetime Mortgage. Providing this is your main residence, some Lifetime Mortgage homeowners choose to ring-fence a portion of the equity for future family inheritance. We find this is a helpful way of gifting a deposit for their first property.

 

You do still have the option to make monthly payments back, however a vast majority of homeowners on this mortgage type choose to simply let interest roll-up. The loan only becomes repayable once you die or move into long-term care, being declared unfit to live on your own and take care of yourself.

Things to Remember with Equity Release

It’s key to remember when looking at this type of mortgage, that you have to be at least 55 years old to qualify. Your age, as well as the value of the property, can have an impact on how much you are able to withdraw from your property.

 

For further Mortgage Advice in Manchester regarding Equity Release, it is worth seeking the advice of a Specialist advisor with experience in this subject. Get in touch with a Mortgage Broker in Manchester and we will point you in the right direction.

 

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Popular Options For Equity Release in Manchester

As mentioned above, there are a many different reasons why somebody may look to proceed with a Lifetime Mortgage for Equity Release in Manchester. Popular options include, but are not limited to:

  • To Repay a Mortgage
  • For paying off Unsecured Debts
  • To pay for any Home Improvements, Modifications or Alterations
  • Any Additional Purchases

Equity Release to Pay Off a Mortgage

You may still be able to take out a lifetime mortgage and use the equity to pay off the remaining balance of a mortgage, even if you have not finished your mortgage term. Bear in mind though, that your affordability may be affected by the fact you still technically already have a large financial commitment to pay for, thus limiting the amount a lender may allow you to borrow.

Equity Release to Pay Off Unsecured Debts

An example of a secured debt would be your mortgage repayment, with it being secured against your an asset (your home in this case). Unsecured debts include personal loans, which works the opposite to the secured debt, as it is not secured against any assets. For issues like this, people often choose Equity Release to cover the costs of any unsecured debts they’ve built up over time.

Equity Release for Home Improvements, Modifications or Alterations

Some homeowners will go with Equity Release for the purpose of Home Improvements, Modifications or Alterations. On the surface this functions the same as Remortgaging for the same purpose, with the only difference being that a Remortgage to Release Equity will most likely place you on a Repayment Mortgage, whereas regular Equity Release means you will be put on a Lifetime Mortgage. Standard paths taken with this include to fund the costs of creating home offices, conservatories, garden improvements, extensions, new living rooms and kitchens, and a new or additional garage.

Equity Release for Additional Purchases

There are many different purchases you may wish to make once you have released a portion of equity from your property. These can typically include things like a new car, a holiday or two abroad, a wedding for yourself or relatives, and literally anything else you could think of spending your money on. With basically unlimited potential, the equity in your property is yours to spend however you see fit.

 

If you would like to release some equity from your current home, Get in Touch and speak to a trusted Mortgage Advisor in Manchester today.

Speak to a Mortgage Broker in Manchester Today

With over 20 years of experience during our time in the mortgage industry, we have supported thousands of customers achieve, helping them achieve their mortgage dreams and doing our best to help them overcome any mortgage hurdles that might have cropped up over time. We have absolutely no ties to any estate agents, banks or building societies, working hard solely for you, our respected customer.

 

As an experienced and knowledgeable Mortgage Broker in Manchester, our brilliant team are able to look through 1000’s of different mortgage deals, in order to try and find the right one for your circumstances.

 

Throughout your journey in obtaining a mortgage, we’ll offer continuous guidance and support, answering any questions that you may have, whether this be at the start of the process or near the end. We even have the ability to help with other services when necessary, such as referring to a conveyancing solicitor.

 

Our hard-working and trusted team are very proud of the service levels we provide here at Manchestermoneyman. This is widely reflected in the Genuine Customer Reviews that we receive almost every day.

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Common mortgage
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Your free initial mortgage consultation in Manchester will last roughly one hour. A dedicated advisor will then recommend a mortgage for you, with no obligation to accept and go forward and proceed with the mortgage in question, if you decide that it is not for you.

As trusted Mortgage Advice professionals in Manchester, we will carry out a Fact Find to establish your personal needs before we go ahead with recommending the most suitable mortgage for your situation. From there you will be credit checked, which is a requirement to obtain an Agreement in Principle. Once you have provided all the relevant documentation and a valuation of the property has been undertaken, you can be issued a formal mortgage offer.

We recommend you obtain an Agreement in Principle prior to property viewings in Manchester, in order to avoid potential disappointment. At the very latest we would suggest that you obtain one before you make any offers, to put you in a better bargaining position. As a dedicated Mortgage Broker in Manchester, we are typically able to obtain an agreement in principle within 24 hours.

Generally speaking, an Agreement in Principle will last for between 30 and 90 days, depending on the lender that is used. If your Agreement in Principle expires before you can make use of it, it can be easily refreshed by speaking to your advisor.

If you’re looking to achieve something like debt consolidation or home improvements, you may be able to place a second mortgage on your home. If you’re looking to use it for yourself, a family member, a holiday home or a Buy to Let, a second mortgage on that property may also be an option.

A high street lender will typically require you to put down at least 5% of the property purchase price for your deposit. If you have had credit problems in the past, this may be higher.

If you have struggled with credit problems in the past, you may still be eligible for a mortgage, though a lender may possibly require you to put down a higher deposit than expected. This can be something like 15% of the property purchase price.

Submitting at least one year’s accounts moves you along the process, allowing for you to potentially obtain a mortgage in Manchester. Most lenders will utilise your salary plus dividend to calculate the maximum mortgage amount you are eligible to borrow, whereas some other lenders will go off your net profit.

In order for an employee to prove their income, it’s usually 3 payslips and the last 2 years’ accounts if you are self-employed. You will also need to provide some proof of ID, address and the last 3 months’ bank statements.

The free initial mortgage consultation that we offer generally lasts up to around an hour. We are then able to turn around an agreement in principle within 24 hours of that appointment. A formal mortgage offer takes, on average, somewhere around three weeks.

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Our 4 step process

Step 1

An initial telephone call where your advisor will take some preliminary details and find out your mortgage plans.

Step 2

Obtain a Mortgage Agreement in Principle to support any future offers on properties you're interested in. You're now ready to begin the property search.

Step 3

Make an offer on a property that's right for you! Our team will finalise any details and work hard to find you the best outcome for your situation!

Step 4

Finally, we'll make certain that this is the best deal on offer to you right now. We will continue to support you 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.

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UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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