The older you are and the unhealthier you are the more cash you can release.
Interest-only lifetime mortgages can reduce the value of your estate. Interest-only lifetime mortgages may impact ability to claim entitlements. You may need to pay a broker’s fee and some products expose you to changes in interest rates.
The lender will want to know if the property is a Semi detached freehold house or a Leasehold flat and if the resident is an Owner Occupier Primary Residence.
It’s very regular to discover individuals searching for home reversion schemes, monthly payment life time mortgage or monthly payment equity release, however, Just Retirement like Aegon are keen to see paperwork to show your circumstances in the form of bank statements.
Why Take Out an Equity Release in the UK? Is Legal and General the best deal?
Struggling to afford your mortgage (or need a better retirement) but still own your property? The good news, according to the ads at least, is that equity release is now an affordable and secure way of raising money. However, if you’re not careful, it can also be an expensive way of securing the future of your property.
One of the biggest advantages of taking out an equity loan in the UK is that it’s not normally available to first-time buyers. This means you will usually need to have a relatively good credit rating to be eligible. In addition, most loans, mortgages and refinancing deals are only available to those with stable employment and property in the UK, as the risk is so much greater for someone who might want to invest in a property abroad.
However, there are other reasons why taking out an equity loan in the UK might be an attractive option. Here are some of the most common:
* It’s easy to qualify for an equity loan in the UK. There are lenders offering competitive deals, making borrowing easy on any income group and offering competitive repayment options and terms.
* Interest rates are generally quite low – a lot lower than in the USA. If you can find an equity loan with a low rate then this can save you thousands. Even the best deals are still much cheaper than what you would pay by borrowing from the bank or building society.
* You are guaranteed to get a good deal on a loan if you have a steady job and you’re paying your mortgage on time. Even if you don’t have a house or an income, you can get a fixed rate that’s almost always better than those offered by a broker, and if your credit rating is good, then the terms and repayments are also very friendly.
* Getting an equity loan in the UK is very secure. There are a few risks involved. It’s a great way of putting your property back into your family’s hands, in the same way as when you were a child and ensuring that you have the financial means to support your children financially in the future.
The disadvantages of borrowing in the UK are mainly the same as those with other loans, such as the interest rates, the cost of borrowing and the potential for getting into trouble with the law. If you are considering taking out an equity loan in the UK then it’s wise to do some research online and check the law for the area you live in before taking out a loan.
If you are a first-time buyer, you will probably have to pay a larger deposit than usual, but this will vary depending on the type of equity loan you take out and the interest rate you choose. In most cases, you’ll also have to provide information relating to any previous properties and the length of time you have been paying off loans. You should also give the lender information about your current employment.
Although your monthly repayments will be lower on an equity release, there is a risk of repossession. Make sure you choose the right lender and choose carefully.
If you plan to sell your home or borrow against your equity release, you need to make sure you sell it before you start paying off your loan. Selling it before the period for the repayments has expired is probably the best thing to do, because the longer you wait the more difficult it will be to get your money. Most lenders will only allow you to sell the property if you have paid off your loan in full, even though they are not legally obliged to do so.
Once you’ve got your loan paid off, you will also be able to reclaim a portion of your equity. Make sure that you use the money for something that will give you more financial security. This could mean that you can afford to go out to eat in a nice restaurant, buy a new car or take your children out for the weekend.
Flexible Lifetime Mortgage Product Summary– Issue Date 14/08/2019
Home Equity Release plans
Premier Flexible Black
Interest rates Fixed and Variable
Standard 3.36% MER 3.41% AER 3.45% MER 3.51% AER 3.45% MER 3.51% AER 3.62% MER 3.68% AER 3.76% MER 3.83% AER 2% Cashback N/A 3.65% MER 3.71% AER 3.65% MER 3.71% AER 3.81% MER 3.88% AER 3.96% MER 4.03% AER £599 Arrangement fee 3.32% MER 3.37% AER 3.42% MER 3.47% AER 3.42% MER 3.47% AER 3.58% MER 3.64% AER 3.73% MER 3.79% AER Flexible Turquoise 3.96% MER 4.03% AER 4.15% MER 4.23% AER 3.92% MER 3.99% AER Flexible Blue 4.46% MER 4.55% AER 4.65% MER 4.75% AER 4.42% MER 4.51% AER Flexible Navy 4.81% MER 4.92% AER 5.00% MER 5.12% AER 4.77% MER 4.88% AER Flexible Indigo 5.25% MER 5.38% AER 5.44% MER 5.58% AER 5.21% MER 5.34% AER Call us on 03330 048444 Lines are open 8.30am to 5.30pm Monday to Friday. Call charges will vary. Calls may be monitored and recorded.
Legal & General Home Finance Limited is a wholly-owned subsidiary of Legal & General Group plc. We are registered in England and Wales number 04896447. Registered office: One Coleman Street, London EC2R 5AA. Legal & General Home Finance Limited is authorised and regulated by the Financial Conduct Authority.