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Equity Release in York

Equity Release & Lifetime Mortgages

How does Equity Release in York work?

The longer that you’ve had a mortgage, the more equity you are likely to have in your home. Did you know that it’s possible to release a percentage of this equity and turn it into a lump sum of cash?

 

This lump sum can be used for various things. You could use it to pay off an existing mortgage payment, pay off unsecured debts, improve your home or even go on holiday or pay off a car loan. The possibilities are endless; you can spend the money however you want to.

Lifetime Mortgages

As a Mortgage Broker in York, we’ve seen that later life applicants usually choose to Release Equity through a Lifetime Mortgage.

 

You will have the opportunity to Release Equity through a Lifetime Mortgage generally when you are coming to the end of your mortgage term. If you choose to take the Lifetime Mortgage route, you’ll get the choice of whether or not you want to dedicate a percentage of your equity for future family inheritance.

 

After you’ve taken out a Lifetime Mortgage, you will get the choice to pay back the interest on the mortgage or simply let the interest roll up. Paying back the interest on the Lifetime Mortgage will mean that you owe the same amount that you borrowed when you die, meaning that your family will inherit more of the property than if you were to let the interest roll up.

 

When you choose to leave the interest to roll up, there will be less equity left in the property; should you die or move into long term care the lender will own the house. This may sound like the worse option of the two, however, letting your interest roll up will not cost you anything, you’ll receive your lump sum at the point that you took out the Lifetime Mortgage and will have no more payments to meet.

 

Whichever option is most beneficial for your personal and financial situation you should choose.

Things to Remember with Equity Release

There are various criteria to meet before qualifying for a Lifetime Mortgage. For example, you will have to be living in the property that you are releasing equity from (your main residence) and you will also have to be at least 55 years of age. The amount of equity that you can release on your home will depend on the property’s value and your age.

 

Furthermore, for expert Equity Release Mortgage Advice in York, please get in touch with our fantastic team.

 

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Popular Options For Equity Release in York

As a Mortgage Broker in York, we’ve seen lots of different reasons why people Equity Release. Here is a list of the most popular reasons that we come across:

  • Paying capital off an interest-only mortgage
  • Paying off unsecured debts
  • To fund home improvements, modifications or alterations
  • Additional purchases

Equity Release to Pay Off an Interest-Only Mortgage

Despite not having finished your fixed-mortgage term, you still may be able to take out a Lifetime Mortgage and use the equity that’s been released to pay off the rest of your mortgage.

Equity Release to Pay Off Unsecured Debts

An example of a secured debt would be a mortgage, as the loan is being secured against an asset (your home). An example of unsecured debt would be a personal loan or a credit card, as the debt is not secured against any assets.

Equity Release for Home Improvements, Modifications or Alterations

If your house is looking like it needs a bit of work doing on it/needs more space, did you know that you can Release Equity to fund Home Improvements?

 

People choose to Release Equity for Home Improvements for lots of different reasons, it could be for a home office, conversion, garden improvement, extension, new room or kitchen.

Equity Release for Additional Purchases

Releasing Equity for additional purchases is perfectly fine too. You maybe want the money for purchases such as a new car, a holiday, a wedding, just to mention a couple. You can spend the cash on whatever you want as you are the owner of the property and the equity is yours.

 

For more expert Equity Release Mortgage Advice in York, please feel free to get in touch with us today. Our team is waiting by the phone, ready to answer any questions that you may have about Equity Release in York.

Speak to your Expert Mortgage Broker in York

We have been in the industry for over 20 years! We apply a combination of our knowledge and experience to everything we do. From your initial point of contact, we will hold your hand through the whole mortgage process.

 

We give 110% to the customer. It isn’t just about finding you the most competitive and cheapest mortgage deal, we will try and find you a deal that is perfect for your personal and financial situation. We only want the best for you!

 

We offer a free no-obligation mortgage consultation in York to every customer, so make sure to take advantage of it!

 

If you are in the market for fast and friendly Mortgage Advice in York, then you’ve landed at the right place. Yorkmoneyman has helped thousands of customers just like you before, you could be next!

 

Make sure to have a look at our reviews to see how others have valued their experience with Yorkmoneyman.

What our customers say

Common mortgage
questions

As your Mortgage Broker in York, we will start with a Fact Find. During this stage of the process, we will get a better view of your personal and financial situation which will help us when selecting a mortgage deal.

You will then have a credit check performed on you, this step is essential in order to obtain an Agreement in Principle. Once you’ve handed us all of the relevent documentation and a valutation of the property has been completed, a formal mortgage offer can be offered.

Your initial mortgage consultation will take around an hour, afterwards, we will try and arrange an Agreement in Principle for you within 24-hours of your consultation. The final step is submitting your application and waiting for a formal mortgage – this can take about three weeks.

As a Mortgage Broker in York, we always recommend trying to have an Agreement in Principle in place prior to viewing properties. An Agreement in Principle could put you in a position that would let you negotiate prices.

Your free initial mortgage consultation will approximately last an hour. During the consultation, we will ask you some questions and get a bigger picture of your personal and financial mortgage situation.

After the consultation, your dedicated Mortgage Advisor in York will begin searching for mortgage products, trying to secure you one that’s more competitive than your current rate. Once we find a product for you, it’s up to you whether you want to take the offer or not. If so, we can get the ball rolling and start the mortgage application submission process.

Yes, you can obtain a second mortgage in some cases. Whether it’s for home improvements, debt consolidation, for a Buy to Let or a holiday home, you should know that our Mortgage Advisors in York can help you with this.

When making a deposit on a property, High Street lenders will usually ask for a minimum of a 5% deposit. If you’ve had previous credit problems you may be asked to provide a higher deposit.

You may find it slighter harder to get accepted for a mortgage with previous credit problems, however, it’s not impossible! The difference is that you may be asked to put down a higher deposit than usual, perhaps 10-15% of the property purchase price.

If you manage to submit at least one year’s accounts, you are able to get a mortgage. As a Mortgage Broker in York, we see that a lot of lenders use your salary plus dividend to work out the maximum mortgage amount that you would be able to borrow. We’ve also seen some lenders go off your net profit.

Here are all of the documents that you’ll need to support your mortgage application in York

  • Photographic ID (Driving license, Passport, etc.).
  • Proof of Address (Utility bills, tax bills, credit card statements, etc.).
  • Latest 3 months’ payslips & Latest P60 (employed applicants)
  • Latest 2 years’ tax calculations and corresponding overviews (self-employed applicants)
  • 3 months’ bank statement proving the deposit being built-up with an explanation for any large credits.

Once you obtain an Agreement in Principle, it should last around 30-90 days. This will depend on the lender that you’ve used.

If your Agreement in Principle expires, you can easily renew it by contacting your Mortgage Broker in York or your lender.

We make it so easy!
Our 4 step process

Step 1

A telephone test call where we can take some initial details and find out about your plan of action.

Step 2

Enjoy finding a property!

Step 3

Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.

Step 4

Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.

A telephone call where we can take some initial details and find out about your plan of action.

Enjoy finding a property!

Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.

Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.

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Yorkmoneyman.com & Yorkmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

© 2021 Yorkmoneyman

Yorkmoneyman, York Hub, Popeshead Court Offices, Peter Lane, York, YO1 8SU.

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