0191 695 9493


Equity release can be an invaluable tool later in life to aid with any expenses or lifestyle requirements you may have. As mortgage advisors in Newcastle, we understand the complexities of equity release products and lifetime mortgages and the questions you may have in relation to circumstances that may arise years after you have taken out the policy. 

A very important part of our discussion with every customer is their plans or potential future plans and whether they anticipate that may need or want to pay their lifetime mortgage back early for a variety of reasons.

With so many lenders and so many products to choose from, there is a huge array of early repayment structures which we will guide you though to ensure the most suitable product is chosen.

What are early repayment charges?

In short, equity release can be paid back early, however as the terms of the agreement in essence  are based on the loan not being repaid until after you move into long term care or pass away, in many cases, you can incur a penalty for early repayment which is called an Early Repayment Charge.

The terms of the early repayment charge with each lifetime mortgage can differ significantly. As a result, the precise penalties for early repayment will vary in each case. As equity release mortgage advisors, we can help you understand what early repayment will mean for you in your lifetime mortgage agreement. We will guide you through the agreement ensuring that any questions you have are answered. A lifetime mortgage is a long-term product, and thus understanding if it is right for you is essential. We can help.

How much does it cost to repay a lifetime mortgage?

If you do not yet have a lifetime mortgage or are unfamiliar with the concept, lifetime mortgages are a form of equity release. If you own your home and are aged 55 or over, you can release a percentage of the value of your home. As the name suggests, the intention of a lifetime mortgage is that it lasts the duration of your life and that the balance you owe will not be repaid until you pass away or move into permanent care. 

However, there are occasions in which a customer may want or need to repay their mortgage early and, in these circumstances, an early repayment charge can apply.

The length of time in which charges apply and the way in which they are calculated vary quite significantly, with the term of the charging period running anywhere between 4 and 15 years and the actual charge calculated from as low as 5% of the original loan amount up to 15% of the balance on redemption with some providers.

Whatever your personal future circumstances may be, if you need to release equity in Newcastle, we will ensure you choose the right mortgage for you.

Get in Touch

If you would like to discuss your options for a lifetime mortgage, get in touch. We are qualified and highly experienced lifetime mortgage specialists in Newcastle, and we bring a friendly smile and trust to everyone we help. 

Lifetime mortgages can help you live in comfort and security in old age, but it may be that you are also concerned about leaving something behind for your family. With appointments over the phone or in the comfort of your home, we can address all these questions–give us a call today.

A lifetime mortgage is a way to release equity from your home later in life to help pay for any costs you might need. This could include general cost of living expenses, paying for home improvements, gifting to family or even funding a holiday. One of the most common questions around lifetime mortgages is at what stage you can release the equity from your home. As a mortgage advisor in Newcastle, we have extensive experience with these sorts of questions. 

You can release equity using a lifetime mortgage from your home from the age of 55. Some providers allow you to release up to age 95. As the money is already yours, it is released tax-free. You can apply for an initial lump sum from a minimum of £10,000 with all providers.

You can also arrange a drawdown facility if you would like the peace of mind that you also have access to further preapproved funds in the future if wanted or needed.

As a retirement mortgage advisor in Newcastle and the surrounding areas, we can guide you through the process.  We will answer any questions you might have about how lifetime mortgages work–read on to learn more.

How does Equity Release work?

There are a variety of forms of equity release. The only type of equity release we recommend and arrange is a Lifetime Mortgage. This allows you to retain 100% ownership of your home. If you have been thinking about how you will cover expenses as you get older or retire, a lifetime mortgage could be the answer. 

In essence, a lifetime mortgage is a loan secured against your home. It allows you to access money which is already yours… (but is tied up in the ownership of your home) without having to sell your home. As a mortgage advisor in Newcastle, we can guide you through this. 

The “equity” in your home refers to the value of your home less any outstanding mortgage held against it. If you have a mortgage on your property, this will need to be repaid using the funds from the lifetime mortgage. Then, subject to the equity remaining over and above the mortgage balance, you could access a percentage of this amount to spend as you wish. 

How much equity can I release?

The amount you can release depends on your age at the time of your application and the value of your home. As you get older, you can release more of the value of your home. For example, by the time you are 85 and over, you can potentially release as much as 50% of your home’s value as a tax-free cash lump sum. 

If you own your home outright with no mortgage, then you own 100% of the value of your home. Depending on your age, you can borrow anywhere from the minimum loan amount of £10,000 up to the maximum percentage allowed for your age. 

The percentage allowed at different ages differs between lenders. The best way to find out how much you can borrow if you are looking to release equity from your home in Newcastle is to give us a call.

Fortunately,  lifetime mortgages are not dependent on your income or credit rating. While living in your home, there are no obligatory payments. However, you can choose to pay some or all of the monthly interest. This will mitigate/eradicate the effect of compounded interest on the equity in your home. 

You can also make capital repayments in line with the lender’s specific policy.

Get in Touch: Mortgage Advisor in Newcastle

With so many different products available, navigating lifetime mortgages can understandably feel quite challenging. 

We understand that many people have worked hard all their lives to pay their mortgages off. To begin considering taking a new mortgage out in later life is a big decision. With our friendly lifetime mortgage advice in Newcastle, we can help you understand when you can release equity from your house. Every situation is different, and that is where our expertise lies. We can help you make an informed decision and guide you on later-life mortgages as a mortgage advisor in Newcastle. 

To find out more about when you can release equity from your home, we can hold appointments over the phone or in the comfort of your home.

Call: Joanne on 0191 695 9493

A Lifetime Mortgage is a form of equity release which allows you to release some of the value tied up in your home as a tax-free cash lump sum which can be used for most purposes from repaying an interest-only mortgage, helping with your daily cost of living to home improvements, buying a new car, or funding a holiday.

As property wealth becomes an integral part of later life financial planning, innovation is at the forefront of the lifetime mortgage sector with lenders constantly striving to give customers access to a broad range of products that better suit their specific needs and ideally bridge the gap between a lifetime mortgage and a standard mortgage.

And now … a revolutionary new mandatory payment lifetime mortgage has just been launched by Legal and General which they have named their “Payment Term Lifetime Mortgage”.
In essence, the Payment Term Lifetime Mortgage essentially fills the gap for a smaller, although still significant number of homeowners who are looking at lifetime mortgages but were either under 55 years old or needed a higher level of borrowing than available.

The basic concept is that mandatory payments are required for a set number of years before the mortgage reverts to a rolled-up basis, which differs significantly from other forms of lifetime mortgage by being available to customers from age 50 and allowing an increased level of borrowing if required.

For Equity Release Mortgage advice in Newcastle and the surrounding areas, we can help guide you through the process.

Interest Serviced Equity Release Explained

Equity release takes several forms, with lifetime mortgages being one of the most popular. If you own your home and are aged 55 or over, you can use a lifetime mortgage to release some equity from your home.
With a lifetime mortgage, you have the option to not pay back any of the interest accrued until you move into long-term care or pass away, although many people do choose to pay some or all of the interest each month to mitigate the effect of compounded interest on the equity in their home.

To recognise, reward and encourage customers to service some of their interest, another recent product innovation introduced by Standard Life and More 2 Life and other lenders already committing to following suit… is the option to secure a lower fixed interest rate for customers who are willing and able to commit to making voluntary payments towards the monthly interest for an agreed period of time.

Get in Touch

At North East Equity Release, we offer friendly, expert advice on all aspects of lifetime mortgages from standard roll up, to voluntary serviced interest and now mandatory payment lifetime mortgages in Newcastle and the surrounding areas.

With so many different products to consider, it is natural to have many questions about which equity release mortgage is right for you.

We are here to answer all of your questions to help you make an informed decision and provide you with expert advice and guidance as to which product is best for your needs.

For all later-life mortgage advice, we can hold appointments over the phone or in the comfort of your home.

Buying the Retirement Home of Your Dreams: Equity Release in Newcastle

Retirement can present a lot of questions when it comes to finances. Downsizing is the natural choice for many of us as we think about where we might want to spend our retirement; however, while downsizing may result in a smaller, more manageable property, it doesn’t always result in a lower-priced property. In such cases, exploring options like buying a new home with equity release can offer a solution, allowing retirees to access the value tied up in their current property to fund the purchase of a more suitable home for their retirement years.


Later Life Mortgages to Move Home

We specialise in all types of mortgages, however, if you are 55 and over, a Lifetime Mortgage may help you buy a new home. As equity release providers in Newcastle, we can advise you on the process and answer any questions you may have. Using a lifetime mortgage can help you gain the extra buying power you may need to find the ideal retirement home.


Downsizing: Space Not Costs

Downsizing to a more suitable home may not, unfortunately, always translate to a downsized cost. Bungalows can frequently cost more than houses depending on the circumstances. There are, naturally, reasons beyond cost that you might want to downsize. Whether you want to downsize in physical space or just in cost, we can help you find the right property and advise you on the equity release process.


Expert Mortgage Advice

Even if you have had multiple mortgages in the past, navigating the difficulties and complexities of later-life mortgages, with all of the lenders and products available, can be tricky. At North East Equity Release, we have been providing expert mortgage advice for more than a decade. If you are looking at the move to your retirement home, get in touch with us today to discuss your options.


Contact Us

For advice on equity release to buy a new home, get in touch today for expert advice. We can offer guidance and support on equity release in Newcastle and securing a lifetime mortgage to assist you in buying a new home, so get in touch today–appointments can be held over the phone, via video, or in the comfort of your home.

We cover all areas of the North East, including, Morpeth, Cramlington, Gosforth, Newcastle, Gateshead, Washington, Whickham, Low Fell, Bedlington, Blyth, Ashington, Prudhoe, Corbridge, Hexham, Rothbury, Alnwick, Amble, Ponteland, Whitley Bay, Tynemouth, Durham.

Get a head-start by trying our free equity release calculator tool to see how much you could release from your home.

Repaying Your Interest Only Mortgage: Equity Release 

Interest Only Mortgages come with a range of advantages that are attractive to homebuyers, such as lower monthly payments and potential investment opportunities. However, many people who have taken Interest Only mortgages out previously often find themselves coming to the end of their mortgage term without any clear way of paying off the remaining capital on the loan. This is where finding alternative means to repay an interest-only mortgage becomes crucial, ensuring homeowners have strategies in place to settle the outstanding balance when the term ends.

With a Lifetime Mortgage, you may be able to repay your Interest Only Mortgage so you can continue to live in your home. 

You can then continue to pay the interest each month on your Lifetime Mortgage to avoid the effect of compounded interest and the subsequent erosion of equity in your home,  however, you also have the option to make no monthly repayments at all, which can often help if you are nearing, or are already in retirement and therefore may have less disposable income. 

As a qualified and highly experienced mortgage adviser in Newcastle, covering Northumberland, Gateshead and Tyne and Wear, Joanne can guide you through this process. 

Equity Release Explained 

Equity Release is the “umbrella “word used to describe financial products that can enable you to release the “equity” held in your home. 

“Equity” is the value of your home less any mortgage / secured against it.

The only type of “Equity Release” product we provide advice on and recommend is a Lifetime Mortgage as this allows you to retain 100% ownership of your home. This is often referred to as an Equity Release Mortgage. Among equity release companies, we offer comprehensive advice on all questions you might have. 

Interest Only Mortgages: Equity Release via Lifetime Mortgages

With a Lifetime Mortgage, you can unlock a lump sum from your property which can be used to repay the outstanding balance on your mortgage. These funds are completely tax free as the money is already yours in the first place. 

For many people, this can be the only option for paying off the remaining balance at the end of the term of an interest only or a repayment mortgage. 

It’s natural to have questions and concerns about whether this is the right decision for you, and we will help you understand everything you need to know give you the best advice tailored to your circumstances in Newcastle. 

We will always look at all of the options available to you based on your individual circumstances and where possible recommend alternative solutions also.

Get in Touch 

For friendly advice and more information, give us a call today for best advice on repaying an interest only mortgage and equity release in Newcastle. 

Appointments can be held by telephone, video call or  in the comfort of your own home.

Get a head-start by seeing how much equity you could release from your home using our free calculator tool.

With increasing life expectancy and later life borrowing, many people in the UK are considering more options when it comes to aging gracefully – and comfortably – in their family home.

The thought of downsizing your home, using savings, or relying on local authority and state benefits to move into a care home can be distressing, especially when you are already content and comfortable within your current home.

Did you know that equity release can give you financial peace of mind and is a possible solution for staying in your own home? Equity release has the potential to pay for domiciliary care ensuring your physical and mental wellbeing is cared for when you need it most. If the thought of a care home is upsetting and you are reluctant to hand over the keys to your cherished family home, then equity release could be the financial solution for you.

Read on to discover more about the benefits of equity release for maintaining your independence and accessing long-term care at home.

Grandma and granddaughter watching TV together

Stay in your home

Equity release offers a level of flexibility that you may not have previously considered. The number one benefit of equity release is that it allows you to access money quickly without having to move out of your home.

There is an option to receive a tax-free cash lump sum, with nothing to repay until you pass away or decide to sell the property.

Many schemes offer you the flexibility of withdrawing smaller lump sums as and when required, which can help to keep costs down if you are healthy and your home is in good condition.

Fund long-term domiciliary care

For many aging individuals, home is where your heart is and the idea of giving that up for a cheaper, smaller property or care home accommodation can make you feel like your independence is slipping away. Thankfully, equity release can give you financial freedom and control over the support you receive.

Care at home is becoming an increasingly popular option for many families. With one-to-one personal care that is tailored to you and your specific needs, from once a week to live-in care provision, equity release can help you fund long-term domiciliary care and can help you stay in your home for longer.

Nurse talking to smiling elderly lady in her home

Pay for home modifications

Whether you are an elderly individual living independently and wish to continue living in the comfort of your home, or you’re a family member caring for an aging loved one, safety is a priority. In order to make your home as risk-free as possible and adapted to your mobility needs, home modifications are a prominent concern.

Equity release can provide you with the funds to install flooring modifications to prevent falls, home monitoring systems, assistive seating devices, as well as widened doorways and ramp installation. Whatever health concerns you may have, equity release can help to safeguard your future.

Things to consider

Now that you know the benefits, there are a few things to consider before opting for equity release.

To qualify, you need to be a UK homeowner who is aged 55 years or over, and own a property worth at least £70,000.  There are also minimum loan amounts to consider, generally starting at £10,000.

It is also important to consider how equity release is affected by your age and the value of your property; the older you are and the greater the value of your home, the larger the sum that can be released.

To ensure you are making the right decision about later life borrowing, it’s important to seek the advice of a qualified financial adviser.

North East Equity Release can help you to review current schemes, offering tailored, expert advice to find the perfect deal for you. Get in touch to find out how we can help you age gracefully in the comfort of your home.