Equity is essentially the difference between what the property is worth and what you owe on your remaining mortgage balance. The basic purpose of Equity Release is to turn the equity that is already existing in your current home, into a lump sum of cash for you to use in any way you would like.
You have the ability to use this withdrawn cash for anything you wish to, with common choices from homeowners including to pay off an existing mortgage payment, to pay off any unsecured debts you may have gathered, to fund any home improvements you wish to make, as well as to pay for any future holidays, car payments and anything else you can think of spending money on.
Equity Release is most commonly found in the form of a Lifetime Mortgage.
The way Lifetime Mortgages work, is either once you have finished your mortgage term or even if your repayments, you can choose to release your equity through a Lifetime Mortgage. Providing this stays as your main residence, some Lifetime Mortgage homeowners will have the option to ring-fence a portion of the equity for any family inheritance in the future. Many find that this is a helpful way of gifting a deposit for their family members first property.
You may still have the option to make monthly payments back, though a significant amount of homeowners on this mortgage type choose to simply let interest roll-up over time. The loan only becomes repayable once you die or move into long-term care, being declared unfit to live by yourself.
You must remember when looking at this type of mortgage, that you have to be at least 55 years old to qualify for it. Your age, as well as the value of the property, can have an impact on how much you are able to withdraw.
For additional Mortgage Advice in Doncaster regarding Equity Release, you benefit from seeking the advice of a Specialist advisor with experience in this field. Get in touch with a dedicated Mortgage Broker in Doncaster and we will guide you down the right path.
As earlier on, there are a various reasons why somebody may prefer the option of a Lifetime Mortgage for Equity Release in Doncaster. We hear of these options regularly. Constant occurrences tend to be:
You may still have the option of taking out a lifetime mortgage and using the equity from your property to pay off the remaining balance of a mortgage, even if your mortgage term is still ongoing. Please remember though, that your affordability may be affected by the fact that on a technicality, you still already have a large financial commitment to pay for. This could limit the amount a lender will let you borrow.
As a homeowner, an example of a secured debt would be your mortgage repayment, with the asset it’s secured against is your home. Unsecured debts include personal loans, and they don’t have the luxury of being secured against any assets. For any credit problems like this, people often choose Equity Release to cover the costs of these unsecured debts they’ve built up over time.
Some homeowners prefer the route of an Equity Release as a means of funding any potential Home Improvements, Modifications or Alterations. On the surface this functions as Remortgaging for the same purpose would, with the one major 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 taking out a Lifetime Mortgage. We typically see that options for this include to fund the costs of creating home offices, conservatories, garden improvements, extensions, new living rooms and kitchens, and a new or extra garage.
Once you have released a portion of equity from your property, you are free to spend this money however you want. Whilst some do use it for serious, financial means, others may simply opt to fund some later in life fun. These options usually 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 pretty much unlimited potential, the equity in your property is yours to spend however you want to.
If you would like to get started with releasing some equity from your home, Get in Touch and speak to a trusted Mortgage Advisor in Doncaster today.
With over two decades of experience within the mortgage industry, we have supported thousands of our customers, guiding them towards their mortgage dreams and doing our best to help them overcome any mortgage hurdles that might arise over time. We have zero no ties to estate agents, banks or building societies, working hard for you and only you, our respected customer.
As an experienced and knowledgeable Mortgage Broker in Doncaster, 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 mortgage process, we’ll offer continuous guidance and support, answering any questions that you may have at any point in time, whether this be at the start of the process or as we near the end of it. Our advisors are even able to help with other services when necessary, such as referring you to a trusted conveyancing solicitor.
Our dedicated and loyal team are very proud of the service levels we provide here at Doncastermoneyman. This is greatly shown in the Genuine Customer Reviews.
Your free initial mortgage consultation in Doncaster will last roughly one hour. We will then be on our way to recommending a mortgage for you, where you have no obligation for you to proceed. If you’d rather not take it and step back for a time, you have every right to do so.
Your mortgage advisor in Doncaster will carry out a Fact Find to establish your personal mortgage needs, before recommending the most suitable mortgage for your situation. A credit check will then be required in order for you to obtain an Agreement in Principle, which we are able to help with. Once you have provided the lener with all the relevant documentation, and you have had a valuation of the property completed, a formal mortgage offer can then be issued.
To avoid finding yourself disappointed when viewing and making offers on properties, we recommend you obtain an Agreement in Principle ahead of time. At the very latest, we recommend that you obtain one prior to making an offer, as this will assist your bargaining position.
An Agreement in Principle will usually last for between 30 and 90 days depending on the Lender that you are with. If your Agreement in Principle expires, you can easily have it refreshed.
You may have the option of taking out a second mortgage on your home for things like debt consolidation or any potential Home Improvements. It may also be possible to take out a mortgage on a second property to use on yourself, for a family member, a holiday home or even a Buy to Let.
The minimum deposit a lender will require when purchasing a house in Doncaster is around 5%. This figure can possibly be higher if you have had previous credit problems, but entirely depends on the lender.
If you’ve had credit problems previously, you may still have a chance at getting a mortgage, but you may possibly be required to put down a higher deposit than for the property than you might have if you had with good credit. This can often be 15% of the property purchase price.
You are able to get a mortgage, once you have submitted at least one year’s accounts. The majority of Lenders use your salary plus dividend to calculate the maximum mortgage amount you can borrow, whereas others will go off your net profit.
You’ll generally be required to send three payslips if you are a standard employee to prove income and the latest 2 years’ accounts for self-employed. You will also need to produce proof of ID, proof of address and the previous 3 months’ bank statements.
The free mortgage consultation that you receive when getting in touch, will typically last up to an hour. We can help you obtain an agreement in principle within 24 hours of this consultation, with a formal mortgage offer taking on average about three weeks.
An initial telephone call where your advisor will take some preliminary details and find out your mortgage plans.
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.
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!
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.
