Top Lifetime Mortgage Providers For Ilkley Homeowners (Safe Equity Release Plans)

Lifetime mortgages are the most popular type of equity release, allowing homeowners to borrow against the value of their property.

These mortgages are designed for homeowners aged 55 and above, offering a tax-free lump sum or regular income with interest added, which is repaid from the sale of the property after the owner’s death.

But how do you choose a lifetime mortgage provider, and on what criteria should you make the decision to release equity from your home?

We explore the range of lifetime mortgages in Ilkley to secure the best outcome for your plans.

Who Are The Best Lifetime Mortgage Providers For Ilkley Homeowners?

The best providers include several large insurance and pensions firms:

Aviva
More to Life
Legal & General
Standard Life
Livemore
Canada Life
Royal London
Just
Liverpool Victoria

Interest only lifetime mortgages are an increasingly popular option for the assurance you can release equity from your home without the impact of compound interest eroding your equity.

Voluntary monthly interest payments can be made with modern lifetime mortgages to maintain full control of the interest and preserve your equity for inheritance, or potentially downsizing in the future to maximise the level of equity available.

Our clients safely arrange tax free equity from their homes in Ilkley for many reasons:

Remortgages
Extensions, Kitchens & Home Improvements
Inheritance Tax Planning With Equity Release
Debt Consolidation
Second Homes
Home Purchase
Lease Extension
Cash Injection

Lump Sum VS Drawdown Plans: What’s Best For Me in Ilkley?

A popular method of setting up a lifetime mortgage is drawdown plan. If you don’t need the full amount of equity you’re potentially planning on raising in one lump sum, staging the money over time has several benefits.

Only pay interest on money you actually borrow
Have full control of the money
Still pay interest on the funds borrowed
No pressure or obligation to take a penny more than you need

How Does Equity Advice Release Work in Ilkley?

Equity release advice in Ilkley can be arranged via a home, office or telephone appointment with your local expert advisers at Later Life Finance.

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Accessing Expert Equity Release Advice in Ilkley

When remortgaging and releasing equity in Ilkley, access to a qualified equity release adviser will ensure you receive independent, expert advice.

At Later Life Finance, we provide home and office appointments to discuss your requirements. We will explain the options in detail, answer your questions and provide detailed interest projections to help you decide whether equity release is the right option for you.

What Are The Next Steps To Get Equity Release Advice in Ilkley?

If you’d like to understand all your equity release options in confidence, your adviser will ensure you are aware of the wider implications of raising cash from your home. If suitable, we will review the market and identify the most suitable solution to meet your personal needs.

Equity release FAQs

What is the downside to equity release?

The main downside to equity release is the effect of compound interest on the most common type-the lifetime mortgage. However, this interest effect can be avoided or reduced with voluntary repayments. The equity release council included voluntary repayments as a requirement for lenders to meet their strict codes of conduct. The ability to make voluntary, penalty-free partial repayments was made a compulsory feature for all products to meet Equity Release Council standards from March 2022.

Do I need an advisor for equity release?

Prior to finalising your decision on equity release, it is crucial to seek financial guidance with a qualified equity release adviser. Discussing your plans with an independent equity release adviser will enable you to compare the whole market, and your adviser will identify the most suitable solution to match your specific circumstances. Additionally, should you opt to proceed with equity release, it is essential to obtain legal advice. Your adviser will be able to suggest an independent solicitor who specialises in equity release.

What does Martin Lewis think of equity release?

While Martin Lewis does not provide a direct endorsement for equity release, he acknowledges that under specific circumstances, it can be a viable solution to access funds tied up in your home to meet living costs and provide financial security. Where downsizing has been ruled out, for example, Martin Lewis has a balanced view on the concept of equity release and it's benefits to homeowners seeking extra funds in later life, and advises independent advice on equity release is obtained.

Is there a catch to equity release?

Equity release provides you with a cash lump sum or a drawdown facility to take the cash over a longer timeframe. The "catch" with equity release is that the money released from your home, plus interest will need to be repaid when the property is eventually sold. With a Lifetime Mortgage, you will owe the money borrowed plus the loan interest accrued. If you make voluntary repayments to the mortgage this will help reduce the amount of interest repayable on the mortgage, and will help maximise any inheritance your beneficiaries may receive.

How long does it take to arrange equity release?

It takes between six and eight weeks for an equity release application to complete and to receive your funds. The timescale depends on whether you have a mortgage to repay from the money taken, and whether there are any legal processes which may delay the process, such as moving home or changing the title.

Do you need an LPA for equity release?

A lasting power of attorney, or LPA is not required to setup an equity release plan. However, having an LPA in place is important to ensure access to further funds from a drawdown plan if you ever lose capacity to make your own decisions, or cannot sign your wishes for physical reasons, such as a stroke. If you have not set up an LPA and it is required, the Court will need to appoint a deputy for you. Planning ahead is prudent to ensure you have arranged such measures in case an LPA is required in the future, and this can save a great deal of stress if and when the time comes to use the LPA.

Can you use equity release for anything?

Equity release funds are tax-free and can be used for anything you wish (providing any existing mortgage is repaid from the funds). Popular uses of equity release funds include repaying mortgages and unsecured debt, home improvements, a cash boost, purchasing second homes, and helping family with a financial gift.

What is the most popular form of equity release?

Lifetime mortgages are the most popular form of equity release and provide the flexibility to move home and make voluntary payments, if preferable. Equity release customers unlocked £1.6 billion in property wealth in Q2 of 2022. (Equity release council)

how long does equity release take

An equity release application should take around eight weeks until you receive your equity release funds. This depends on whether you have an existing mortgage to repay and if any changes to the title are required, which can increase the timescale to arrange.

What is the typical interest rate for equity release?

In July 2023 the lowest Equity Release rate is currently 6.03% (Monthly Equivalent Rate) fixed for life. The highest interest rate in the market is currently 8.64% (Monthly Equivalent Rate).