Equity release advice in Leicester

For many homeowners in Leicester, their property is one of their largest financial assets. Over the years, you may have built up a substantial amount of equity in your home while your income in retirement has become more limited.

Equity release can provide eligible homeowners with a way of accessing some of that money without having to sell their home and move.

People consider equity release for many different reasons. You may want to repay an existing mortgage, make improvements to your home, help children or grandchildren, supplement your retirement income or simply create additional financial flexibility.

Whatever you are hoping to achieve, our starting point is to understand why you need the money and what is important to you in the years ahead. Only then do we begin looking at lenders and products.

Our equity release advisers cover Leicester and Leicestershire

My Later Life has specialist advisers covering Leicester and the surrounding Leicestershire area.

We can help homeowners in Leicester and surrounding locations including Aylestone, Birstall, Braunstone, Enderby, Evington, Glenfield, Humberstone, Oadby, Syston, Wigston and nearby areas.

Depending on your circumstances, preferences and adviser availability, your appointment may be carried out by telephone, video call or face-to-face.

The important part is that your adviser takes the time to understand your circumstances before discussing possible solutions.

Why whole-of-market equity release advice matters

One of the most important questions to ask an equity release adviser is simple:

"Which lenders can you actually consider for me?"

Some advisers work with a restricted number of providers. My Later Life provides whole-of-market equity release advice, allowing our advisers to consider a broad range of lenders and plans when researching your options.

This matters because lenders do not all assess applications in the same way.

Finding the right lender, not simply the lowest rate

Naturally, the interest rate matters. With a lifetime mortgage, a lower rate can reduce the amount of interest that builds up over time.

But choosing an equity release plan purely because it has the lowest headline rate can overlook other factors that may be equally important.

For example, one lender may have a slightly lower rate but strict property criteria or repayment conditions. Another may offer more flexibility, a suitable drawdown facility, different early repayment terms or lending criteria that better fit your circumstances.

That is why our advisers consider both cost and suitability.

Our aim is to find a competitively priced plan from a lender whose product and lending criteria are suitable for your personal circumstances.

What will your Leicester equity release adviser consider?

Before recommending a plan, your adviser will build a detailed picture of your circumstances. This can include:

Your age

Your age can influence how much different lenders may allow you to release. Where there are joint applicants, lenders will normally consider the age of the youngest applicant.

Your property

The value, location, construction, condition and type of your Leicester property may all influence which lenders are prepared to consider it.

How much you need

Borrowing more than you actually require can result in unnecessary interest accumulating. Your adviser can discuss whether taking an initial amount with access to further funds later could be appropriate.

Your existing mortgage

If you currently have a mortgage secured against your home, it would normally need to be repaid when the equity release plan completes.

Your plans for the future

Your adviser may ask whether you expect to stay in your present home, whether you could move later, how important inheritance is to you and whether you would like the ability to make repayments.

Your health and lifestyle

Certain health and lifestyle circumstances may be relevant to some lenders when determining how much could potentially be released.

Your wider finances

Releasing money from your property can affect entitlement to some means-tested benefits, so your wider financial circumstances should be considered before proceeding.

How does equity release work?

Equity release allows eligible homeowners to access some of the value tied up in their property while continuing to live there.

Lifetime mortgages are the most common form of equity release and come with a range of different features depending on the lender and product selected.

Lump sum or drawdown equity release?

Lump-sum lifetime mortgage

With a lump-sum plan, you release an agreed amount when the mortgage begins. This may suit someone who needs a larger amount immediately, perhaps to repay an existing mortgage or pay for substantial home improvements.

Drawdown lifetime mortgage

A drawdown lifetime mortgage allows you to release an initial amount and establish a reserve from which further money may be taken later, subject to the terms of the plan.

Interest is generally charged on money once it has actually been withdrawn. For somebody who does not need all their money immediately, this could reduce the amount of interest accumulating compared with releasing the entire amount on day one.

How much equity could you release from your Leicester home?

There is no single percentage or amount that applies to every homeowner.

The amount you may be able to release can depend on:

• The age of the youngest homeowner
• The value of your property
• The lender and product selected
• Any existing mortgage balance
• Property type and construction
• Individual lender criteria
• Certain health or lifestyle circumstances

Our equity release calculator can provide an initial indication. The result is not a mortgage offer or personal recommendation.

The equity release process

1. Start with a conversation

Tell us what you would like to achieve and provide some basic information about your property and financial circumstances.

2. Consider the alternatives

Equity release is not automatically the right answer. Your adviser will consider whether other forms of borrowing or alternative options could be appropriate.

3. Research suitable lenders

If equity release appears suitable, your adviser can research the market and compare appropriate lenders and products.

This is where our whole-of-market approach becomes particularly valuable. We look at interest rates, lender criteria, product features and flexibility, rather than focusing on one headline figure.

4. Receive a personal recommendation

Your adviser will explain the recommended product, why it is considered suitable, the costs involved and any important risks or limitations.

5. Property valuation

The lender will normally arrange for your home to be valued before making a formal lending decision.

6. Independent legal advice

Independent legal advice is an important part of the equity release process. Your solicitor will explain the legal implications and documentation before completion.

7. Completion

Once the lender, adviser and solicitor have completed the necessary stages, the funds can be released.

Understanding Equity Release Council protections

Lifetime mortgages meeting Equity Release Council product standards include important consumer protections.

• The right to remain in your home for life or until you move permanently into long-term care, subject to the terms and conditions of the mortgage.
• A No Negative Equity Guarantee.
• The ability to move the mortgage to another suitable property, subject to the lender's criteria.
• Interest that is fixed for each release or, where variable, subject to a lifetime cap.
• The ability to make penalty-free repayments, subject to the terms of the plan.

Your adviser will explain which protections and product features apply to any plan being considered.

“Every client’s situation is different. Our job is to look beyond the rate and understand what really matters to them — whether that is flexibility, protecting inheritance, repaying an existing mortgage or simply having confidence that the lender is the right fit for their circumstances.”— Graham Clelland, Equity Release Director, My Later Life

Could another option be better for you?

Equity release can provide useful financial flexibility, but it will not be suitable for everybody.

Depending on your circumstances, alternatives could include:

• Downsizing to a less expensive property
• Using savings or investments
• A conventional mortgage or remortgage
• A retirement interest-only mortgage
• Financial assistance from family
• Taking a smaller amount
• Delaying the planned expenditure
• Other later-life mortgage options

A responsible adviser should be prepared to explain when equity release is not an appropriate solution.

Why Leicester homeowners choose My Later Life

Whole-of-market advice

We are not tied to one equity release lender. Our advisers can consider suitable products from across the market when researching your options.

Advisers covering Leicester

We have specialist advisers covering Leicester and the wider Leicestershire area.

We look beyond the headline rate

Price matters, but so do lender criteria, repayment flexibility, property requirements and other product features. Our aim is to find a competitively priced solution from a lender that suits your individual circumstances.

Specialist later-life knowledge

Later-life borrowing can involve different considerations from a standard residential mortgage. Our advisers can explain your options and the longer-term implications.

Clear explanations

We aim to explain the important points in plain English so that you understand what you are considering before making a decision.

Equity release Leicester: frequently asked questions

Speak to an equity release adviser covering Leicester

If you are considering equity release in Leicester, start with a conversation.

We will take the time to understand what you want to achieve, how much you may need, your property, your finances and what matters to you in the future.

We can then research suitable options from across the market, looking at the lender, interest rate, criteria and product features.

Because choosing equity release should not simply be about finding the lowest rate. It should be about finding a suitable lender, a suitable product and a competitive solution for your individual circumstances.

Or use our equity release calculator

Written by Graham Clelland, Equity Release Director at My Later Life
CeRER, CeMAP, CeFA, CMA, MLIBF