If you’ve had a mortgage for quite some time now, you’ve probably built up a lot of equity in your home without even realising. Did you know that you can release some of this equity and turn it into a lump sum of cash?
You can use this cash for a number of different things. You can use it to pay off an existing mortgage payment, to pay off any unsecured debts that you may have associated with your name, to fund home improvements (such as conversions and extensions) and even to pay for a holiday, car payments or something similar.
Equity Release is likely to come in the form of a Lifetime Mortgage.
As you are starting to approach the end of your mortgage term, you can choose if you want to Release Equity through a Lifetime Mortgage. Providing that this is your main residence, you’ll be able to take out a Lifetime Mortgage. Upon taking one out, you’ll have the chance to select your percentage of equity for future family inheritance, if you want to do so.
Usually, the homeowner will pay back the mortgage whilst they live inside the home or when they are in long term care. Another option is to let the loan amount build up with interest. Either option is perfectly acceptable. Different homeowners do different things, it’s entirely up to you and your personal and financial situation as to what you use your equity for.
Firstly, you’ll have to qualify for a Lifetime Mortgage. You have to be at least 55 years old to qualify and the amount of equity that you can release on your home will depend on the property’s value and your age.
To learn more about Equity Release Mortgage Advice in Hull and to get started on your own Lifetime Mortgage, please feel free to get in touch. A dedicated member of our team will be able to put you in contact with a trusted Equity Release specialist, who will be able to further help you with what you are looking to achieve.
There are lots of different reasons why someone may want to release equity in their home and take out a Lifetime Mortgage. As a Mortgage Broker in Hull, here are a few common reasons that we’ve seen for people wanting to Release Equity within their home:
You may still be able to pay to take out a Lifetime Mortgage and use the equity to pay off the remaining balance of a mortgage, even if you still haven’t finished your fixed-mortgage term. Although, taking out a Lifetime Mortgage early may impact your affordability. This is because technically you already have a large outgoing to pay for, which may impact the amount that a lender is willing to give you.
Secured debts examples include mortgage payments, as you are securing the money against an asset, in this case, it’s your house. Unsecured debt examples are personal loans and credit cards, as the debt is not secured against any particular asset. If you were to take this route, you would release your Equity to pay off that unsecured debt.
If you feel like your home needs a little work done on it or some improvements/conversions, did you know that you can Release Equity to do so? This works in a similar way if you want to Remortgage to Release Equity, the main difference being that if you Remortgage to Release Equity, it’s likely that you’ll be placed on a Repayment Mortgage, whereas a regular Equity Release will put you on a Lifetime Mortgage.
The most common options for Releasing Equity for home improvements include home offices, conversions, garden improvements, extensions, new living rooms and kitchens, and a new or additional garage.
You can also release equity for other reasons, this includes additional purchases such as a new car, holidays, a wedding, just to name a few. It doesn’t have to be something on this list, it can be anything you want. As you are the owner of the property, the equity is yours so you can spend it how you please.
If you have Equity Release Mortgage enquiries, feel free to get in touch with our team today. We have trusted specialist contacts in the field of Equity Release who we are able to put you in contact with.
Whilst we are expert mortgage advisors in Hull, we don’t deal with topic directly. Instead, we do have a working relationship with a trusted Equity Release specialist who we are able to put you in contact with. They are full qualified experts on the matter and will be able to answer all of your questions.
This is something we are able to take a look at, yes! Whilst Equity Release and later life mortgages are not our specialist area, we are able to help you with a standard Remortgage enquiry should you have any questions, or be nearing the end of your fixed period.
A trusted Mortgage Broker in Hull like us has been helping customers achieve their mortgage dreams for the last 20 years and counting. We always do our best to overcome every mortgage hurdle that we are faced with no matter how hard the situation is; we love a good challenge! We work for you (the customer), and no matter what we always have your best interests at heart.
After your free mortgage consultation, we will go and search for the perfect mortgage deal that matches your personal and financial situation. Once we recommend you with a mortgage deal that you want to continue with, we will be able to get the ball rolling with your mortgage application.
We will hold your hand through the whole mortgage process. With our continuous guidance and support, we will get through the mortgage journey together, aiming to take out all of the stress involved with the process.
Our free initial mortgage consultation will last roughly one hour. Lucky for you, as an experienced Mortgage Broker in Hull, we can turn around an Agreement in Principle within 24 hours. All we need is a quick phone call to gather the necessary information. A formal mortgage offer takes about three to four weeks on average.
If you’re an employee, you will usually have to supply three payslips and the latest P60 to prove your income. If you are Self Employed in Leeds, it is typically the latest two years’ tax calculations and correspondings overviews. You will also need to provide proof of ID (Driving license or Passport). Proof of Address (Utility bills, tax bills or credit card statements) and three months’ bank statement. You are proving the deposit built up with an explanation for any significant credits.
The good news is it may be possible to get a mortgage if you are self-employed in Hull. To qualify, you need to submit at least one year’s of accounts, the likelihood may increase your chance of obtaining a mortgage. Most lenders take a look at your salary plus dividend to calculate the maximum mortgage amount. Others may go off your net profit. It all depends on the lender.
The good news is that you may find it a bit more challenging to obtain a mortgage despite having previous credit issues on your record. But it doesn’t mean it’s impossible, and you may still be able to get one! It just means that some Lenders may ask for a slightly higher deposit of around 10-15%.
Most high street mortgage lenders will usually ask for a minimum of a 5% deposit. This percentage may be higher depending on your previous circumstances, e.g. if you’ve had any past credit issues.
The good news is it is possible to have two mortgages in Hull running simultaneously, as long as you can afford to repay the monthly instalments on each of them. If you’re looking to accomplish something like debt consolidation or home improvements, you may be able to place a second mortgage on your home.
An Agreement in Principle typically lasts for 30-90 days. However, this timeframe is up to the Lender. If your Agreement in Principle expires, worry not; you can renew it by getting back in touch with your Mortgage Advisor in Hull.
As a Mortgage Broker in Hull, we recommend that you obtain an Agreement in Principle (AIP) as soon as you can, preferably before you start viewing properties. Having an Agreement in Principle in place when you are viewing houses could potentially allow you to negotiate prices.
Our mortgage process consists of multiple different steps. The first step is to get in touch, and one of our trusted mortgage advisors in Hull will carry out a Fact Find to get a bigger picture of your mortgage situation.
Secondly, you’ll undergo your free mortgage consultation, and your assigned dedicated Mortgage Advisor in Hull will begin searching for mortgage deals that match your circumstances. If they find you an offer that you are happy to proceed with, we can get the ball rolling with your mortgage application.
Next, they will perform a credit check on you to obtain an agreement in principle. Some evidential documents will be required from you to help back up your mortgage application.
Lastly, they will submit your mortgage application and wait for a formal mortgage offer to be issued.
Your free initial mortgage consultation with your dedicated Mortgage Advisor in Hull will last around an hour. During this consultation, we will get to learn a bit more about your mortgage needs and what you are looking for. Once we know more about your personal and financial situation, we will start looking for mortgage deals that will match you perfectly.
A telephone test 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.
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.
