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 in Manchester 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You are able to use this withdrawn cash for anything you’d like, with popular choices including to pay off an existing mortgage payment, to pay off any unsecured debts that have built up over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.
Equity Release in Manchester 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.
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 in Manchester, 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.
To understand the features and risks, ask for a personalised illustration. Our typical advice fee is up to £1,495 only payable on completion. 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 repayable upon death or moving into long term care.
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:
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.
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.
Some homeowners will go with Equity Release in Manchester 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.
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 discuss any Equity Release in Manchester enquiries, feel free to get in touch with our Mortgage Advisors in Manchester team today.
As mortgage advisors in Manchester, we have dealt with various different scenarios over the years. Equity Release in Manchester is something we can help with. We have an expert Equity Release specialist who may be able to help. They are qualified Equity Release experts and will be able to answer your questions.
We can take a look at this area, yes! We are able to help you with a standard Remortgage enquiry, whether you are near the end of your term or just have some questions.
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.
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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.
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