For many people, the stress and worry of everyday life can become overwhelming. No matter your financial situation, it’s easy to get so focused on bills that you forget about important things in your life.
One way to relieve some of this pressure is with equity release – a loan product explicitly designed for retirement or pensioners who need money now but don’t want to sell their home or property.
When it comes time to choose an equity release company, several factors will help you make the best decision for yourself. In this article, we’ll discuss those factors and recommendations for equity-release companies!
Top Equity Release Brands Worldwide
2 Types Of Equity Release Plans Or Schemes In The UK:
A Lifetime Mortgage is a type of equity release plan or scheme that allows you to get cash from the value your home has increased. This money can be used for any purpose, and it’s not considered income by the government.
A lifetime mortgage can be taken as a lump sum or in installments, and your property is usually kept as collateral until you die. At this point, it’s returned to the lender if they have defaulted on payments agreed with them when signing up for the plan or scheme.
In return, the equity release company will take their share of your home (usually between 50% and 75%), meaning that it’ll go towards paying off any debt you owe them over time – this means that more cash will gradually become available; for spending each month!
Home Reversion is an excellent option for those who want to pass on their home as an inheritance, and it lets you stay on your property until the day that you die.
You’ll need to pay off any outstanding mortgage before taking out this kind of equity release plan. Still, once you’ve done so, they’ll sell your house with all its contents (minus anything expressly excluded) and then give some or all of the money from the sale back to you over time.
What does this mean?
This means that there’s no monthly fee with Home Reversion schemes – just one lump sum charge at the start!
Some drawbacks are that if something happens where someone else needs care full-time such as Alzheimer’s disease or dementia, people may lose access to their money, and if you want to move house, then it’s not possible.
Lifetime Mortgage Providers
A lifetime mortgage is a type of long-term equity release which allows you to take out an interest-only loan for the value of your property and pay it back over time.
You’ll need to have some income level, but if you don’t, then there are other options available. You’ll also be required to pay off any outstanding mortgage before taking one out, so ensure this doesn’t leave you in negative equity (where the amount owed on your home exceeds its market value).
If you don’t want someone else living in your house or if something happens where they can no longer live independently, such as Alzheimer’s disease or dementia, then people may lose access to their home and be forced to move into care.
Bridgewater Equity Release uses the best possible lending rates and charges for its clients, ensuring they can get the right product to suit their needs. In addition, it offers products as part of a single solution or in combination with other financial services such as life insurance and long-term care cover.
Best of all:
The company has provided private homeowners with flexible solutions that enable them to keep some control over what happens to their property after they die since 1999.
Crown Equity release is a UK-based company that provides home equity solutions to help people manage their finances and maintain their independence.
They offer flexible products that can be used anytime in the future; for example, if something happens where they can no longer live independently, such as Alzheimer’s disease or dementia, people may lose access to their home and be forced to move into care.
It offers clients products as part of a single solution or in combination with other financial services such as life insurance and long-term care cover.
Retirement Mortgage Providers
Retirement mortgage providers offer a lifetime mortgage that is designed to meet the needs of older borrowers.
A retirement mortgage will typically be taken out when you retire so that you can afford to live in your own home for as long as possible without having to worry about making monthly repayments, even if interest rates go up or down. This type of equity release can provide financial stability and peace of mind in later life.
Bank of Ireland
Bank of Ireland Offers retirement mortgage products through its subsidiary Bank of Ireland Mortgage Solutions.
Beverly Building Society
Beverly Building Society offers a range of equity release products to suit different needs and circumstances.
Buckinghamshire Building Society
Buckinghamshire Building Society offers equity release to those who are retired and own their home outright or have a mortgage with the society.
Society has been offering this type of product for over 140 years and is one of the most extended established providers in the UK.
Family Building Society
Family Building Society is committed to providing various products and services that help customers achieve their financial goals.
The society is one of the largest providers in the UK for equity release, with packages available up to 75% loan-to-value on your home.
Family Building Society has been offering this type of product since 1987, making it one of the most extended established providers in time.
Hanley Economic Building Society
Hanley Economic Building Society was established in 1977 and is now one of the UK’s leading equity release providers.
Hanley offers loans up to 75% loan-to-value on your home, so if you’re retired or self-employed, it’s worth considering this type of mortgage product to help with retirement funding.
The society has been offering Equity Release since 1987, which makes them one of longest established providers time.
Hinckley and Rugby Building Society
Hinckley and Rugby Building Society has been offering the product since 1989, making them one of the most extended established providers.
Here’s the deal:
They also offer flexible payment periods meaning you may be able to choose from options such as 15 or 25 years repayments with any payments due after age 85, adding nothing to what is owed by then.
Hodge Lifetime Mortgage has the longest repayment term of all those on this list, at 40 years.
The minimum age you can apply for an Equity Release scheme is 55, and it’s worth considering if your home may be sold in a couple of decades to fund your retirement as there are no capital repayments when you die.
They’re also one of only two companies that allow total interest-only payments meaning that even if someone were paying back just the mortgage each month, they would still slowly reduce their debt.
Ipswich Building Society
Ipswich Building Society is another company with a 40-year repayment term. Still, they also allow total interest-only payments meaning that even if someone were paying back just the mortgage each month, they would still slowly reduce their debt.
The minimum age you can apply for an Equity Release scheme is 65, and it’s worth considering if your home may be sold in a couple of decades to fund your retirement as there are no capital repayments when you die.
Leeds Building Society
Leeds Building Society is one of the few companies that offer a 35-year term, but they still allow full interest-only payments meaning that even if someone were paying back just the mortgage each month, they would still slowly reduce their debt.
The maximum age of 75 is for Leeds Building Society’s Equity Release scheme, and there can be no more than two people on any application, so this might not suit some families and others with three or four borrowers.
Mansfield Building Society
Mansfield Building Society is one of the largest providers in the country, with some 155,000 customers across its Equity Release schemes.
Mansfield Building society also offers term lengths from 20 years to 40 years, and it doesn’t charge any fees if you apply online, but this may not be true for all lenders, so make sure that you check your terms carefully before signing up.
Marsden Building Society
Marsden Building Society is another of the top providers in the country, with around 131,000 customers.
This provider operates on a referral basis, so it may not be suitable for all borrowers, and its rates are slightly higher than average at up to 11%.
Marsden Building Society offers some good flexible options, including terms from 20 years to 40 years, and it provides no fees if you apply online, which makes this an ideal choice for those who want to save themselves the hassle.
Newbury Building Society
Newburry Building Society is the second largest building society in the country, with around 230,000 customers.
Newbury offers a range of plans from £25K to over £750k, and its rates can be as low as six percent, so it’s worth getting some quotes if you want something close to the market price.
Although this provider operates on a referral basis which may not suit everyone, Newbury does still offer an online application process for those who do have access though there are no fees at all; what this means is that borrowers need to wait up to two weeks before they receive their decision about their mortgage meaning that these applications might suit people looking long-term mortgages rather than short-term ones like equity release loans.
Penrith Building Society
The society offers a range of equity release plans from £100K to over £750k with rates as low as five percent, meaning that it’s worth considering if you want something slightly more affordable than some other providers might offer.
One downside is that Penrith Building Society only operates in some geographical regions, so this isn’t ideal for people who don’t live close by or can’t get there quickly.
The provider doesn’t provide an online application process either, which means borrowers need to contact them directly about getting their mortgage decision – perhaps not too inconvenient for those living nearby but could be problematic for others, especially when faced with unexpected circumstances like being hospitalized miles away.
Scottish Building Society
This is a good choice for those looking for equity release with life cover as it offers both products in one package.
One of the biggest downsides is that you can’t apply online and need to get an advisor’s help, which means there are more fees involved – this might be worth considering if someone doesn’t want to pay any extra costs but could mean waiting longer than usual or having some difficulty finding the right place.
Another downside is that the Scottish Building Society has strict eligibility criteria, and borrowers must meet certain requirements before they’re accepted as customers, so while it does have high rates, getting approved may not always be possible either.
Swansea Building Society
Swansea Building Society is one of the larger and better-established providers on the market, with a history dating back to 1887.
It get’s better:
Swansea Building Society offers more than just equity release products – they also provide mortgages for those looking to buy their next home, which can be an excellent choice if you already know where you want to live in retirement but don’t have much saved up.
The downside might be that it’s difficult to get through via phone or email contact, so it could take some time waiting on hold when inquiries are made by this method; there may still need to be visits to branches rather than being able to do so everything online.
Tipton and Coseley Building Society
This is another of the larger providers on the market, with a history dating back to 1875.
Their products include equity release and specialist mortgages – such as self-build loans and interest-only options for those looking to move into retirement housing that they have built themselves.
The product range is wide, too, including payment-free periods for income withdrawals in addition to fixed-rate deals when you want certainty over your monthly payments; there are no early repayment charges either, which can be an attractive option if you change your mind about using their services after signing up.
High Street Banks & Lifetime Mortgages
The big banks are not just restricted to the high street and online – they have a presence on both.
They may offer lower rates than some of their competitors, but there is no hiding from their fees, which can be as much as £995 for lifetime mortgages;
often cheaper products will need you to keep up repayments with them until your age 90 or even 100 before becoming eligible for release.
Again, it all comes down to what you want out of your equity release plan: do you want certainty over monthly payments? Do you prefer flexibility around income withdrawals? But, again, each provider has its range of deals that might suit different people best.
What Is The Best Company For Equity Release?
The best company for equity release would be the one that is most closely aligned with your goals and financial situation.
What Is A Typical Equity Release Interest Rate?
The typical equity release interest rate varies dramatically from company to company.
Is There A Better Alternative To Equity Release?
There is not a better alternative to equity release because every person has their own needs and wants.
Equity Release Companies To Avoid?
There is not a list of equity release companies to avoid. There are some providers with high rates and fees, though. So if you’re on disability or have other income that’s less than $500 per month, be sure to investigate those options carefully before taking any action.
That was only the beginning,
The best equity release companies are not always the ones with the cheapest rates. Consumers need to be careful when choosing a company for their financial needs and should research before committing to any one option.
They should also make sure they understand all of the terms and conditions that come along with an agreement because it can have some very serious consequences if they don’t read through them carefully first.