Telephone:
0191 695 9493

Email:
info@northeastequityrelease.co.uk

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.

Joanne, equity release adviser, offering later life mortgage advice to a client

While entering the golden years of life, many individuals are often confronted with the realisation that their pension provisions are not enough to allow them to enjoy their retirement to the full. In recent cases, as a result of the current cost of living crisis, many are even struggling just to make ends meet.

As such, many homeowners are turning to later life retirement mortgages to release some of their wealth tied up in their homes as a solution to this problem.

What are later life mortgages?

Later life mortgages, also known as equity release or lifetime mortgages, are financial products designed to allow homeowners aged 55 and above to access the wealth that is tied up in their home which is referred to as their “equity”.

Unlike standard income-assessed mortgages, later life mortgages do not require regular monthly repayments. Instead, the borrowed amount, plus interest, can be repaid when the homeowner passes away or moves into long-term care. This makes the product highly desirable for those entering later life with reduced income although it will reduce the value of your estate for your beneficiaries.

The benefits of later life mortgages

For those entering their twilight years, financial stability and peace of mind become paramount concerns for many. Later life mortgages can help homeowners maintain their independence, realise long-considered dreams, and ensure a dignified and comfortable retirement by offering:

Access to funds: One of the most significant advantages of later-life mortgages is that they provide homeowners with an initial tax-free cash lump sum and can also offer a drawdown facility which means they also have access to further funds which can be drawdown at a later date if and when needed which can be used to cover various expenses, including home improvements, medical bills, debt consolidation, or simply enhancing their quality of life as they enter the retirement phase.

Flexible or no monthly repayments: As mentioned earlier, these mortgages have no contractual monthly repayments, however, the customer has the choice to pay some, all or none of the mortgage interest and in some cases repay capital without incurring charges in order to mitigate the effect of rolled up interest and preserve the equity in the home.

Home certainty: A lifetime mortgage is no different to a standard mortgage in that it is a loan secured against your home of which you retain 100% ownership and therefore can continue to live in your home for as long as you desire and without interference. 

Later life mortgages are designed to enable homeowners to age in the comfort of their own homes as well as having the freedom to move.

Elderly woman holding a small house in her hands

Meet Joanne: Your trusted later life mortgage expert

Navigating the world of later life mortgages can be overwhelming, with various options and considerations to explore. This is where Joanne, our retirement mortgage expert with over 30 years of experience in the business can help!

As a member of the Equity Release Council, Joanne provides clear and transparent advice taking as much time as is needed to ensure you have a full understanding of the benefits of a later life mortgage as well as any potential risks. She can offer alternative financial solutions, including checking whether you may be entitled to any unclaimed benefits whilst also ensuring that you won’t affect any current entitlement to any benefits you may already receive.

Joanne spends time to understand your personal financial situation and works closely with her clients from the very first call, throughout the whole application process and beyond. Trusted friends and family are also welcome to be included throughout the entire process.

Embrace the opportunities that later life mortgages provide and take a step closer to financial security by getting in touch today! 

older couple walking through a field with their arms around each other

Equity Release is a big financial decision and can have a financial impact on the consumer and their family so it’s important once you’ve acquired a Lifetime Mortgage that you continue to be supported by experienced Equity Release Advisers.

At North East Equity Release, we are committed to providing you with the best service and support before, during and after your application process.

After using our services to arrange your mortgage, we will always be on hand to answer any future questions you may have. We ensure our customers are given all the support and assistance they may need, whenever they need it.

We also ensure all our communications with you are delivered in a clear and concise manner and are never misleading. We spend as much time as needed to ensure you have a full understanding of the products and their potential impact on your estate.

Although it’s called a Lifetime Mortgage and interest rates are currently fixed for the lifetime of the mortgage, you don’t have to keep the same mortgage for life….

As interest rates are subject to fluctuation, lower fixed interest rates than you currently have may become available and because early repayment charges on most plans no longer run for the lifetime of the plan, in some cases it may be cost-effective to remortgage your lifetime mortgage to a new lender with a lower interest rate.

We can carry out a review of your mortgage at no cost at any time in the future to see if this is an option for you.

We will also always be on hand to help you access your drawdown facility if you have one and assist with any further borrowing if required.

If you’re considering a lifetime mortgage and would like advice from an experienced, qualified. industry professional, get in touch with our Equity Release Adviser Joanne today.

Older couple sitting at a table discussing equity options

Do you dream of spending your golden years travelling the world and engaging in all your favourite activities, but are unsure how you would be able to pay for it? If so, a Lifetime Mortgage could be your best chance of making your dreams a reality.

If you wish to improve your retirement options but are unsure if equity release is the best option, we may have the solution for you. We can assist you in determining whether later-life lending is the best course of action for your future with the help of our equity release quiz.

The quiz challenges three separate personal qualities of an individual by asking a series of questions.

Knowledge is the first personal characteristic the quiz considers. The quiz asks questions to determine how familiar you are with the concept of lifetime mortgages and helps fill in any knowledge gaps toy may have by educating you on areas you may have previously been unaware of.

It next looks at personal qualities, and asks you a series of personal questions to figure out what plans you have already made for your retirement lifestyle. Once we are aware of your specific circumstances, we can assist you in determining whether a lifetime mortgage is the most beneficial method of financing your retirement.

Qualification is the last consideration of the quiz. The simple questions will help us determine if you would be eligible for later-life lending based on your specific circumstances.

After the quiz is completed, a report with an overall score will be produced. You will be given a score for each of the three considerations, a summary of all three sections, a total score that is the average of the three, and recommendations for your next course of action.

This quiz can be beneficial if you are considering equity release as it gives you an instant personalised report that is entirely unique to you. It can help you better understand your strengths and weaknesses and give you a better understanding of how an equity release adviser can assist you before you get in touch.

It is important to remember that navigating your finances through later life and into retirement can be tricky, especially as there are now so many options available to those aged 55+. Expert advice is crucial to ensure the best outcome based on your specific and individual needs.

If you are considering a Lifetime Mortgage after completing the quiz, our highly experienced Equity Release Adviser is here to take you through the next steps.

With a better understanding of your situation, Joanne will be able to offer you specialised guidance and assist you in exploring all of the options that are available to you in a clear and concise manner.

Get in touch with Joanne today for quality, professional advice on equity release.

your personal equity release adviser Joanne

When it comes to Equity Release, it is essential that you find an experienced and knowledgeable professional that you can trust, someone who can help you make the right choices in line with your circumstances. Someone like Joanne. 

We know just how important it is to be able to place your trust and confidence in the hands of a professional that can provide you with the assurance they have the necessary knowledge and experience to know exactly what they’re doing when it comes to equity release in order to lead you in the right direction. That is why today we are delighted to introduce Joanne, the experienced financial adviser behind North East Equity Release.

Introducing your personal equity release adviser

When you are needing the advice of a professional in the finance industry, you need to know that they have the background and experience required in order to be able to provide quality, independent advice that is genuinely in line with your best interests.

“Can’t rate Jo highly enough. I don’t think my Equity Release would have gone through without her intervention. Thanks again Jo!”Jacki

Luckily for our clients, Joanne is a highly experienced equity release adviser with a genuine commitment to providing honest, insightful advice to everyone that she works with.

A wealth of knowledge and experience

Joanne has worked within financial services for over three decades, securing her first role in the industry as a cashier at Barclays Bank. So began a lifelong passion for helping individuals to best manage their finances from a position of genuine care, honesty and expertise.

“Joanne, you’re worth your weight in gold. Thank you for sorting this out for us.”Costas and Gemma

In 1997, Joanne secured her professional qualifications, enabling her to become a qualified Mortgage Consultant. From this point onwards, Joanne began to assist clients in the process of securing competitive mortgages, helping countless customers buy their very first home, remortgage their property and navigate and resolve tricky circumstances that require shrewd, professional advice.

A changing financial landscape

It is no secret that we live in a very different world today than the one that many of us grew up within.

The ever-changing economic and political landscape of the U.K. means that it is becoming harder for many individuals to ensure a comfortable retirement for themselves; one where they are able to spend time doing the things that they love, whether that be travelling, relaxing, learning new skills and picking up old hobbies, or spending time with loved ones.

As such, the need for and interest in later-life borrowing has increased in recent years. For Joanne, it soon became clear that it was important for her to be able to assist her clients in this new and growing need, and in 2017 she became a qualified Equity Release Adviser.

Registered with the Equity Release Council, Joanne now specialises in helping individuals and couples to navigate lifetime mortgage plans, leading with a genuine sense of consideration and care and a commitment to acting in the very best interests of her clients.

Looking for professional help with equity release? Look no further than North East Equity Release, and get in touch with Joanne today.

Equity release and state pension

One of the major concerns people often have when considering equity release is how it might impact their state pension.

As equity release becomes an increasingly popular choice for over 55’s looking to unlock the value tied up in their homes, understanding the potential effect on your state pension is crucial if you are thinking about taking this step.
So, in today’s blog post, we would like to explore the relationship between equity release and state pensions, in order to create a clearer picture around this matter.

What is equity release?

Equity release is the term used that allows homeowners aged 55 or above to access the equity built up in their properties.

This type of loan has become increasingly popular over the years and in essence involves taking out a lifetime mortgage.

Borrowers can release anywhere from £10 000 up to over 50% of their property’s value which provides an option that can be particularly attractive for retirees looking to supplement their retirement income or meet unforeseen expenses.

How does equity release impact state pension?

It is no secret that in the current economic climate, many individuals who are approaching retirement may be incredibly concerned that they will not be able to support and sustain themselves solely through their state pension.

For those in such a position, equity release provides an attractive alternative to financial insecurity and the chance to enjoy a richer, more relaxing retirement…

However, many individuals are rightly concerned that equity release may impact their state pension.

The good news is that equity release does not affect your state pension entitlement.

State pension is a separate benefit provided by the government based entirely on your national insurance contributions throughout your working life. Therefore, the amount you receive from your state pension remains unaffected by releasing equity from your home.

What about means-tested benefits?

While your state pension remains intact, it is important to consider the potential impact of equity release on means-tested benefits.

Means-tested benefits, such as pension credit or council tax support do take into consideration your income and capital. Releasing equity from your property could increase your capital and take your savings over a threshold which might affect your eligibility for certain means-tested benefits.

How can a professional adviser help?

Whilst equity release does not directly affect your state pension, it is important to be aware of the potential repercussions involved for means-tested benefits. Seeking professional, trustworthy advice will enable you to fully understand the specific implications equity release entails, based on your own unique circumstances.

Here at North East Equity Release, we have helped countless individuals and couples to make the right choice in line with their specific needs when it comes to equity release, offering impartial advice based on knowledge and experience when it is most needed.

Are you considering equity release but are in need of professional help and advice that you can trust? Get in touch today.

Martin Lewis advice on equity release

When it comes to managing your finances, Martin Lewis is a bedrock of sound advice. But what does the Money Saving Expert founder say about equity release? 

Journalist, presenter, campaigner and founder of UK consumer website, Money Saving Expert, Martin Lewis has made an impressive career out of helping people to make smart choices when it comes to saving money. As a result, millions of Brits regularly look to him for trustworthy, unbiased advice when it comes to handling their finances. So, let’s take a look at Martin’s hot take on equity release!

What does Martin Lewis think of equity release? 

Martin Lewis does not explicitly recommend equity release, and he’s right not to do so. This type of mortgage product is not for everyone, and it would be wrong to suggest that equity release can serve as a cure-all to your financial woes! 

In a nutshell, Martin Lewis believes that over-50s who are considering equity release should arm themselves with all of the facts regarding lifetime mortgages and make sure that they have considered any alternatives – such as downsizing or selling assets – before they opt for a lifetime mortgage. Pretty good advice, if you ask us! 

Martin advises that borrowers need to be conscious of the fact that equity release products will impact the amount of inheritance they are able to leave loved ones. Ultimately, however, he stresses that it’s essential for you to prioritise your own standard of living first and foremost when making your decision. If equity release will help you to have a more comfortable, enriching retirement, it’s definitely worth considering. 

As such, if downsizing is not an option, you have no saleable assets, and poor cash flow is having a detrimental impact on your quality of life, Martin would advise you to seek out the help of a professional adviser and consider equity release as a viable solution to financial challenges you may be facing in later life. 

Decided to investigate equity release further? Here are Martin Lewis’ tips for smart borrowing

  • Make sure to only borrow what you need

Martin’s number one tip when it comes to equity release is to only borrow what you need. If you want to be super savvy, you might want to consider a drawdown lifetime mortgage, as this type of product gives you full flexibility to access your money as and when you need it. With this product, you’ll only pay interest on what you borrow, and not on the funds being held in reserve, thus shrinking the size of your loan.

  • Check your lender is a member of the Equity Release Council 

This is an important one. It’s essential that you check your lender is a member of the Equity Release Council (ERC). Lenders with membership to the ERC will provide you with a guarantee that you’ll never owe more than the value of your property, amongst other safeguards.

  • Seek independent financial advice 

Here at North East Equity Release, we are qualified advisers who specialise in arranging lifetime mortgage products for our clients. We have access to the whole of the market and can find you the most suitable lender and equity release plan for you.

  • Double-check your benefits 

Before opting for a Lifetime Mortgage, check that this type of loan will not impact any benefits that you are currently in receipt of, such as pension credits or universal credit. Here at North East Equity Release, we can help you to clarify this. 

Already an existing lifetime mortgage customer? 

If you have previously taken out an equity release loan some years ago, Martin Lewis recommends that you take a look at whether or not you can switch to a better deal. Over the last decade, interest rates have fallen, which means you might be able to save some money by switching. Chat with us to find out if this is an option for you.

*Sourced from Martin Lewis’ moneysavingexpert.com article Should You Equity-Release? 

North East Equity Release can help you to find the right Equity Release product for your needs. Get in touch today.

Family on an equity release phone call

Equity release is a huge decision that can directly affect your family. Therefore, involving your loved ones in the process from the get-go ensures that they understand the choice you’re making and why.

Inheritance protection for your loved ones

When you choose to release equity, this can result in your family being left with a smaller inheritance or no inheritance at all when you pass away.

However, there is the option of opting for a plan that has an Inheritance Protection Guarantee. This protects part of the value of your home and, as a result, leaves something behind for your loved ones.

For example, out of the funds available, you may choose to take out a smaller percentage in order to leave the rest behind for your family to receive after your passing or once the house has been sold.

Involving your family in the process, whether you have a protection guarantee or not, lets them know that you’re planning on releasing funds from your property and the reasons why.

How can North East Equity Release help?

Our advisors can help you to set up a meeting or call with your family to discuss your decision and reassure them by answering any questions they may have.

In this meeting, your family may wish to clarify aspects of the process or discuss things that you may not have considered.

Equally, this is a good opportunity for your loved ones to get to know us and understand that we are giving the best advice possible that’s suited to your situation.

A family meeting or call allows you to relay how inheritance will be affected, and you may wish to emphasise that the equity released is to support family members while you are alive, whether that be helping a grandchild step onto the property ladder or contributing to the costs of a loved one’s wedding.

We’re here to support you through the equity release process. Contact us or call us on 0191 695 9493 for FREE advice on how to get your family involved in your equity release plan.

smiling older woman holds key for new home

This is a very common question asked by homeowners who are considering a Lifetime Mortgage product, and it is an important one to ask.

Do I still own my home with Equity Release?

Yes. You are still the owner of your home, even if you have a Lifetime Mortgage secured against it.

The equity release lender does not own your property, they simply register their financial interest in your property by way of a charge which is registered with the Land Registry Office in the same way as a standard mortgage lender does.

This charge grants the lender the right to recover their money if you sell the property or the mortgage is not repaid within 12 months after the surviving applicant moves into long term care or passes.

Can I move house with Equity Release?

Yes. We only recommend mortgages from lenders who are members of the Equity Release Council and therefore their mortgage products must adhere to a set of minimum standards, one of which is:

The client must always have the right to move to another property subject to the new property being acceptable to the product provider as continuing security for the equity release loan.

By seeking guidance from a professional adviser who specialises in Equity Release, you can ensure you are getting the right product for your needs, from a reputable lender who holds membership with the ERC, covering you for all eventualities.

North East Equity Release can help you to find the right Equity Release product for your needs. Get in touch today.

letter blocks spelling 'equity'

If you are thinking about releasing equity from your home, you may be wondering just how much you can borrow exactly.

What is Equity Release?

Equity Release is the term used where homeowners over the age of 55 access their property wealth by releasing a tax-free cash lump sum, usually by way of a mortgage designed to assist later life borrowers called a Lifetime Mortgage which is not income assessed.

How much can I borrow?

The maximum amount you can borrow is mainly based on age and the property value.

However, there are several variables that may also impact on how much you can borrow, including your age, health, the value and condition of your residential property and whether or not it is a joint application that you are making.

Your age

Age is the primary determining factor when it comes to how much you can borrow.

Put simply, the older you are, the more you are to be able to borrow.

If you are closer in age to 55, you will not be able to borrow as much as someone who is 70+.

This is due to life expectancy, so if you choose not to service the interest and allow it to roll up over the lifetime of the mortgage, the lender needs to be assured that there will still be enough equity in the property at the point of sale to repay the loan including any interest accrued. As such, the potential term of the mortgage needs to be factored in, too.

The value and condition of your property

This is an important factor when determining how much you can borrow.

Your property will be subject to a professional valuation prior to your loan being approved, in order to ensure the lender can be confident that they are lending against a property that will maintain or increase in value over time.

As such, factors including the area, type of property, overall condition, the building’s materials, average house prices in the area and potential growth will be assessed.

If you are wondering how much you could borrow with Equity Release, we can help. Get in touch today.