What is Equity Release?
Equity release allows homeowners to unlock a portion of their property’s value as tax-free cash, without the need to sell or move.
This is commonly used by individuals aged 55 and over who want to boost their retirement income, fund home improvements, or help family members financially.
One of the most popular equity release options is a lifetime mortgage in Leicester, where you borrow against your home’s value while continuing to live in it.
Unlike a traditional mortgage, repayments are not required unless you choose to make them. Instead, the loan (plus interest) is repaid when the property is sold, typically when the homeowner passes away or moves into long-term care.
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For those considering equity release, it is important to explore all available options to ensure it aligns with long-term financial needs.
As specialist providers of mortgage advice in leicester, we can help determine whether this is the right approach.
Can I remortgage to release equity in Leicester?
If you are not eligible for equity release or prefer a different method, a remortgage in Leicester could be a suitable way to access funds from your property.
This involves switching to a new mortgage deal, often borrowing more than your current loan balance to release a lump sum.
Remortgaging can be a good option for homeowners who still have a steady income and can meet affordability checks. The amount you can release depends on factors such as:
- The current value of your home
- The remaining mortgage balance
- Your income and credit history
- The lender’s affordability criteria
A remortgage could be used for a variety of purposes, including home improvements, consolidating debts, or covering major expenses.
It is worth comparing remortgage deals to find a suitable interest rate, as borrowing more could mean higher monthly repayments.
Equity Release and Later Life Mortgages in Leicester
For homeowners in their later years, options such as lifetime mortgages in Leicester and retirement mortgages in Leicester provide tailored solutions for accessing property wealth.
A lifetime mortgage is a type of equity release that allows you to borrow a percentage of your home’s value, with the loan repaid from the property’s sale in the future.
Interest can roll up over time, increasing the overall repayment amount.
Some plans allow partial repayments to reduce interest build-up.
A retirement mortgage, on the other hand, is designed for older borrowers who can still afford monthly repayments.
These mortgages may be interest-only, meaning you only pay the interest each month while the loan balance remains the same.
This option can be useful for those who want to avoid increasing debt while benefiting from additional funds.
What makes a remortgage to release equity different from equity release?
Both options enable homeowners to unlock cash from their property, but they work in different ways:
- A remortgage in Leicester involves replacing your current mortgage with a new one, borrowing more against the home’s value. This option requires affordability checks and regular repayments.
- Equity release in Leicester, such as a lifetime mortgage, allows you to access funds without monthly repayments, with the loan repaid when the property is sold.
Choosing between these depends on individual circumstances, such as age, income, and whether regular repayments are affordable. Speaking to a mortgage expert can help identify the most suitable route.
Why release equity from your home in Leicester?
There are many reasons why homeowners choose to release equity, some of the most common include:
- Home improvements – Upgrading or renovating a property can add value and improve comfort.
- Supplementing retirement income – Many use equity release or remortgaging to maintain financial stability in later years.
- Helping family members – Funds can be used to support loved ones, such as helping children or grandchildren get onto the property ladder.
- Clearing debts – Some homeowners use released funds to pay off existing debts, reducing monthly outgoings.
It is important to carefully consider the long-term impact of releasing equity.
Whether choosing a remortgage or equity release in Leicester, professional mortgage advice in Leicester can help ensure the best financial decision is made.
Book a Free Remortgage Review or Later Life Mortgage Appointment in Leicester
If you are thinking about releasing equity from your home, whether through a remortgage or releasing equity, speaking with a mortgage advisor can help clarify your options.
We can explore suitable solutions, whether that is a lifetime mortgage in Leicester, a retirement mortgage in Leicester, or a remortgage deal that fits your needs.
Book a free appointment today to discuss your options and find the best way to access your property wealth.
Date Last Edited: February 6, 2025
