How to Release Equity From Your Home in Hull

Equity Release Advice Hull

As soon as you start paying off your mortgage, you are building up equity within your home. You can work out the amount of equity in your property by subtracting the amount of your mortgage that you have paid off from the initial mortgage amount that you took out.

For example, if you took out a 95% mortgage (5% deposit) on a £200,000 property and you have paid off £20,000, including your deposit of £10,000 you have put £30,000 into the property. This is the equity within your home. Usually, this is portrayed as a percentage; in this case, you would have 15% equity within your home.

Every homeowner will have a different amount of equity in their home. It all depends on how long they have been paying off their mortgage. In the future, once you have put a lot of money into your property, you may get the opportunity to withdraw some of the cash you have put in. This can be achieved in multiple ways, and they usually differ on the age of the applicant and what they are looking to achieve.

Remortgage to Release Equity in Hull

Those who are only partway through their mortgage may want to release a portion of their equity to gain some extra cash. The way that you can release part of your equity is through remortgaging in Hull.

When it comes to remortgaging, you will need to be starting your process up to six weeks in advance to give yourself chance to prepare for the remortgage process and allow time for your mortgage advisor in Hull to find you a perfect product for you and your property.

The remortgage process is usually much quicker than the typical mortgage process, however, you still need to allow time to switch to a new product. Starting your process earlier will also mean that you avoid falling onto your lender’s standard variable rate of interest. This interest rate is likely much higher than your current rate and the rate you could access if you were to remortgage.

Once you remortgage your property in Hull and release equity, you will be able to do whatever you like with the money. Most people use it to fund improvements for their property, however, some people use it to fund larger purchases such as holidays, weddings or a new car.

When it comes to releasing equity, it is important to weigh up the positives and negatives to decide what the best option is for you.

It is important to seek financial advice before releasing equity.

Equity Release & Later Life Mortgages in Hull

Equity Release is different to releasing equity through a remortgage. The main difference is that you do not have a mortgage on your property to qualify for it. Even if you have already paid off your mortgage, you can still qualify for equity release in Hull.

Like most kinds of mortgages, there are limitations to equity release. You will have to be over the age of 55 and have a property that is worth equal to or more than £70,000. Speaking with a later life mortgage advisor in Hull is essential for equity release.

Equity release comes in two forms: lifetime mortgage and home reversion plan. As a mortgage broker in Hull, we are able to help you with both kinds of mortgages.

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 repayable upon death or moving into long term care.

What makes a remortgage to release equity different from equity release?

When you remortgage to release equity, you will take out a new mortgage on your home with a higher loan to value than what you were previously on. Think of it that you are taking money back from what you have paid into your mortgage. When your new mortgage comes to an end you can either remortgage again or sell up and move home.

If you take out an equity release lifetime mortgage, your mortgage term will be extended over the rest of your life. You are able to withdraw that equity to use as you please with the balance being paid back upon either your death or if you were to move into long term care.

As a mortgage broker in Hull, we have seen how lifetime mortgages have become more flexible over the years and some lenders may allow for you to still move home. If you are looking to achieve this, it is important to speak with a later life mortgage advisor in Hull. Our advisors are able to compare different later life products with on another to determine which option is best for you.

Why release equity from your home in Hull?

As mentioned throughout this article, there are many different reasons why people may want to release equity. Let’s take a look at some of these reasons and how they can be achieved via a remortgage to release equity and through an equity release lifetime mortgage.

Home Improvements

Homeowners may want to invest in their property, particularly if some areas need improvements. Improvements could mean anything from modernising a kitchen to converting a loft to create more space; there are many different ways to improve your home.

Perhaps if you have had a change of personal situation, this option could be more beneficial to you and your situation, for example, if you have decided to grow your family and need more space.

As a mortgage broker in Hull, we would also recommend exploring a remortgage in Hull over moving home in Hull.

Consolidate Debts

If you have built up any unsecured debt, and are finding the repayments hard to manage, you may benefit from releasing a small portion of your equity to pay it off.

The more traditional route to take would be to consolidate this debt into your mortgage so that you pay it off alongside your mortgage payments in more manageable amounts. However, if you don’t want your monthly payments to be increased, using equity from your property could be a faster solution to get it paid off.

When applying this to equity release, we find that later life applicants who perhaps have had their debts catching up to them, will use some of their released equity to simply pay off these debts.

You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

Buying Another Property in Hull

Some homeowners may want to use the equity as a deposit on a new property purchase. This is entirely viable through the power of remortgage and equity release. Whether this property is an investment for a buy to let or for your family to help them get onto the property ladder, releasing equity can give your deposit a huge boost.

You must know that if you choose to take the equity release route to fund the mortgage deposit, you cannot live in this second home, you must only have one place of residence.

Family Inheritance

Equity can also be used to fund family inheritance, although, this is rarely done when people are relating equity through a remortgage.

Later in life, you may want to pass some of your funds on to family members or friends as their inheritance. If the applicant releasing the equity does not have anyone they want to share their inheritance with, we often see that they donate some of it to charity.

Fund Your Retirement

Some people, particularly those with a later life mortgage in Hull, may want to use the equity they have released to fund their retirement lifestyle. This is, of course, less common when remortgaging to release equity.

Furthermore, these funds could be used for the care you may require. This could include both short-term and long-term care.

Book a Free Remortgage Review or Later Life Mortgage Appointment in Hull

Whether you are looking to remortgage to release equity or take out a later life mortgage via equity release, you should speak with a remortgage advisor in Hull or a later life mortgage advisor in Hull. You can book your free mortgage appointment online and select a date and time that best suits you!

We provide a responsive service so that you are able to get in touch with a member of our team 7 days a week. We will also make sure that you are aware of the costs involved with a remortgage and later life mortgages.

To understand the features and risks, ask for a personalised illustration. Equity Release may come in the form of a lifetime mortgage or home reversion plan.

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.

A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.

What is a Lifetime Mortgage in Hull?

A lifetime mortgage in Hull is a type of later life loan that is secured against your home. It allows eligible homeowners to access the process of equity release in Hull.

Your lifetime mortgage loan does not need to be repaid until you have either passed away or have moved into long-term care. At this point, your home would be sold, with the funds from the sale being used to pay back your balance.

When you take out a lifetime mortgage in Hull, you are able to free up some of the wealth that has grown in your home, which can be used for a variety of things such as home improvements, inheritance, to pay off debts, fund your retirement, care costs and more.

How does a lifetime mortgage in Hull work?

First of all, before you take out a lifetime mortgage in Hull, you need to make sure that you are eligible. This means you need to be at least 55 years old and in possession of a property that is worth at least £70,000. There is no prerequisite to have a mortgage either.

To get started on the lifetime mortgage in Hull process, the first step for you to take is to have a chat with a qualified and professional later life mortgage advisor in Hull. They will analyse your personal circumstances, to see if equity release in Hull or an alternative, is suitable for you.

Lifetime mortgages in Hull will most likely be seen in two main varieties. The first of these is a lump sum lifetime mortgage in Hull, with the second one being a drawdown lifetime mortgage in Hull.

A lump sum lifetime mortgage in Hull is what you pretty much expect from the name, it is an all-in-one release of equity, into a lump sum payout. This allows you to access as much as you need, as soon as necessary, but will mean you have a much bigger loan to pay back.

A drawdown lifetime mortgage means you have access to your equity funds and can draw from it whenever you need it. This means it isn’t all released in one go and you only use what is required at that time. Interest is only paid on what you release, which keeps what you owe lower.

With any type of lifetime mortgage in Hull, you are given the option to simply let your interest build up, though this has a big impact on the amount of inheritance that is left once your home has been sold and the balance has been repaid.

Thankfully, not only will a trusted later life mortgage advisor in Hull be able to help you ring-fence a portion of equity in advance, so it can be used for that purpose, but thanks to our Equity Release Council membership, you will benefit from having the “no negative equity guarantee”.

This guarantee means that whilst your debt will increase over time, your estate, those who are left behind after death or if you move into long-term care (usually family) won’t have to struggle with finances and will never owe more than the value of the property.

Pros and Cons of a Lifetime Mortgage in Hull

As is the case with any mortgage type, there are both ups and downs to lifetime mortgages in Hull, which all can vary depending on the person taking out the mortgage and what exactly you are looking to get out of your equity release process.

Of course one of the bigger positives is just how flexible they are, with you being able to release equity in your home either via the drawdown and lump sum variances of a lifetime mortgage in Hull. In addition to this, you also have how flexible payments can be.

You can simply just let your interest to roll-up, which gives you more money to enjoy, as you won’t be making monthly payments. Alas, the downside here is that doing this means when you die or move into long-term care and the property is sold, there will be much less equity for care costs or inheritance.

The topic of inheritance can be the biggest factor for many homeowners, with many looking at equity release in Hull with the sole purpose of providing an inheritance. Thankfully, you may be able to ring-fence some of your equity for this, as your later life mortgage advisor will plan this out with you.

The good news is that, so long as you can keep up your mortgage payments, there is more for your family after you are gone. Additionally, there is also the “no negative equity guarantee”, which means your family won’t owe anything more than what your home is worth.

Further to the above points, there are new safeguards that have been implemented in recent times, thanks to the standards set by the Equity Release Council.

Is a lifetime mortgage in Hull right for me?

This will always be down to what it is you wish to do and what your personal situation is. There are a variety of options for later life homeowners to look at, with equity release and lifetime mortgages in Hull only being one of many.

It is the role of a qualified and experienced later life mortgage advisor in Hull to review your circumstances and help you to decide whether or not equity release in Hull, and subsequently a lifetime mortgage in Hull, is actually right for you to take at all.

In a lot of cases, there will be an alternative that is much more suited for you. This is something your later life mortgage advisor in Hull will have a look at first, before they get started with you on the process of equity release in Hull and a lifetime mortgage in Hull.

More suitable routes may include things like a personal loan, a standard mortgage or remortgage, retirement interest only (RIO), term interest only (TIO) or maybe even something else altogether.

If a lifetime mortgage in Hull is the best option for you, your later life mortgage advisor in Hull will make sure that all of your needs are well met.

This will include things like helping you to plan out what your plans are for the future, how you feel your circumstances may change and any inheritance you want to leave behind. To look more at how we can help with a lifetime mortgage in Hull, please get in touch today.

To understand the features and risks of equity release in Hull and Lifetime Mortgages in Hull, ask for a personalised illustration.

A lifetime mortgage in Hull 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. & Hullmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
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