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How Does a Lifetime Mortgage in Essex Work?

A lifetime mortgage in Essex is a unique way for homeowners aged 55 or older to tap into the value of their property while retaining ownership.

It offers tax-free cash based on your age and property value, and the loan is typically repaid when you pass away or move into long-term care. Interest is charged on the loan, but many allow this interest to accumulate over time.

One notable aspect is that there are no monthly payments to make. Instead, the loan is settled from the sale of your property, which can happen even if you’ve never had a traditional mortgage.

However, it’s essential to be aware that opting for a lifetime mortgage can affect the inheritance you leave behind and may impact means-tested benefits, especially if you choose not to make interest payments.

The Difference Between Lifetime Mortgages and Equity Release in Essex

While a lifetime mortgage is one type of equity release product, equity release in Essex covers a broader spectrum of financial options. For example, another approach is a home reversion plan, where you sell a share of your property to a provider in exchange for a lump sum.

Whether you’re considering a lifetime mortgage, a home reversion plan, or other alternatives like a retirement interest-only mortgage, it’s strongly recommended to speak with a qualified mortgage advisor in Essex for expert guidance.

Types of Lifetime Mortgage in Essex

Lifetime mortgages in Essex come in two main forms: lump sum and drawdown options. A lump sum lifetime mortgage allows you to release a single, substantial payment all at once, but this results in a larger loan.

In contrast, a drawdown lifetime mortgage permits you to access funds as needed, and you only pay interest on the amount you’ve withdrawn. This flexibility can be advantageous if you don’t require the entire sum immediately.

When considering these lifetime mortgages, there’s also the choice of allowing the interest to accumulate, which can affect the inheritance your family receives after the property is sold and the loan is repaid.

However, with our Equity Release Council membership, we can offer a “No Negative Equity Guarantee.” This means that even if your debt exceeds the property’s value, your estate won’t be burdened with additional financial obligations. The excess debt is forgiven when the property is sold.

How is a lifetime mortgage in Essex repaid?

Once your lifetime mortgage in Essex concludes, either due to your passing or moving into long-term care, the borrowed amount is repaid from the sale of your property. Over time, interest may have accrued if you opted not to make regular payments, and this is also factored into the final amount.

The responsibility for initiating the property sale rests with your beneficiaries or estate executors, typically within a 12-month timeframe. If the property isn’t sold within that period, the mortgage lender may step in to manage the sale.

They often consider current market conditions and aim for a fair market price. This arrangement provides assurance that your family won’t be burdened with unforeseen financial obligations.

What are the pros and cons of a lifetime mortgage in Essex?

A lifetime mortgage is a type of equity release product that enables homeowners to access a lump sum or regular income in exchange for a portion of their home’s value. As with any financial product, there are advantages and disadvantages to consider before making a decision.

One of the significant advantages of a lifetime mortgage in Essex is that it allows you to tap into the equity tied up in your home without the need to sell it. This means you can continue to reside in your home while benefiting from the equity release.

Furthermore, with a lifetime mortgage in Essex, you are not required to make monthly repayments. The interest on the borrowed amount is added to the outstanding balance, which is settled when the property is eventually sold, typically after the homeowner passes away or moves into long-term care.

However, there are also disadvantages to weigh. The amount you can borrow depends on factors such as your property’s value, your age, and your health. If your health deteriorates or your property’s value decreases, your borrowing capacity may not meet your expectations.

Additionally, since interest accumulates on the borrowed sum, the total owed can grow significantly over time. This may reduce the inheritance you can leave for your loved ones.

Another aspect to consider is the potential impact on your entitlement to state benefits, such as pension credit or council tax reduction. It’s important to talk with a specialist advisor who can provide insights into how a lifetime mortgage might affect your unique circumstances.

Speak to a Lifetime Mortgage Advisor in Essex Today

We offer a free appointment with a dedicated lifetime mortgage advisor in Essex to anyone who contacts us regarding equity release in Essex and lifetime mortgages. During this meeting, you can discuss your specific situation and determine whether a lifetime mortgage is a suitable choice for you.

Your appointed mortgage advisor in Essex will comprehensively explain the advantages and disadvantages of a lifetime mortgage, address any questions you may have, and help you through the application process should you decide to proceed. Your family is also encouraged to be part of the discussion.

Book your free mortgage appointment today, and we’ll assess whether equity release via a lifetime mortgage or perhaps an alternative, such as retirement interest-only mortgages in Essex, is the right path for you to pursue.

To understand the features and risks, ask for a personalised illustration.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.

My Interest Only Mortgage in Essex is Ending Soon – What Are My Options?

The approaching end of the interest only period can create uncertainty for many homeowners. As your term concludes, your lender will require you to repay the loan amount in a lump sum, which can be challenging if you don’t have the necessary funds readily available.

It’s important to note that there are multiple options available to navigate this situation. This article aims to offer guidance and reassurance, providing you with a clear understanding of the alternatives at your disposal.

By seeking excellent mortgage advice in Essex, specifically from our team, we can facilitate a seamless transition into the next phase of your mortgage or retirement. We will work closely with you to explore the best solutions that align with your financial goals and ensure a smooth and secure path forward.

Remortgage in Essex to a Capital Repayment Mortgage

We will thoroughly explore the possibility of transitioning your mortgage in Essex to a regular repayment product. This involves obtaining a new mortgage with a typical duration of 10 to 20 years, allowing you to repay both the outstanding capital to your current mortgage lender and the accrued interest.

The feasibility of moving to a repayment mortgage in Essex will depend on various factors, such as the amount you owe, the value of your property, your age, and your income.

It’s worth noting that older borrowers aged 50 and above may encounter challenges in this regard, and alternative options may be more suitable in their specific circumstances.

Selling Up or Downsize to a Smaller Property in Essex

If you have a significant amount of equity in your property, you may want to explore the option of selling your current property and either moving in with a family member or downsizing to a smaller property.

By selling your property, you can use the proceeds to purchase a smaller property outright, without the need for a mortgage in Essex.

Once the sale of your property is finalised, you will have the means to pay off your existing interest only mortgage in Essex and achieve a mortgage-free status, providing you with financial freedom and peace of mind.

A New Specialist Mortgage in Essex Designed for The Over 50’s

As a result of the increasing number of interest only mortgage deals reaching their maturity in recent years and positive regulatory changes, mortgage lenders have taken proactive measures to introduce new products specifically tailored to help older clients aged 50+ in maintaining homeownership.

These innovative mortgage products are designed to support clients as they transition into retirement and provide long-term stability. Some of the key features of these products include:

Term Interest Only (TIO) Mortgages in Essex (age 50+)

A TIO (Term Interest Only) mortgage is a specialised mortgage product in Essex specifically designed to cater to clients over the age of 50.

This unique product offers clients the opportunity to secure a new interest only mortgage in Essex with a term of 5 years or more, tailored to align with their individual needs and circumstances.

Retirement Interest Only (RIO) Mortgages in Essex (age 55+)

A RIO (Retirement Interest Only) mortgage is an innovative mortgage product designed specifically for clients aged 55 and above. Similar to a conventional mortgage, a RIO mortgage is secured against your home, and you will make monthly interest payments.

With a RIO mortgage, as long as you meet all the interest payments, the principal loan amount will remain unchanged.

Your new mortgage lender will use the funds from the RIO mortgage in Essex to repay your existing interest only mortgage in Essex, providing you with a flexible and sustainable solution for your retirement years.

Equity Release (age 55+)

An equity release mortgage in Essex is a viable option for homeowners aged 55 or above, allowing them to unlock tax-free funds from their homes.

If we determine that this option is suitable for your specific situation, the released funds will be used to fully repay your existing interest only mortgage in Essex.

There are two primary types of equity release plans available. The first is a lifetime mortgage in Essex, which grants you full ownership of your property and is recommended in approximately 99% of cases. With a lifetime mortgage, you retain the right to live in your home for the rest of your life.

The second option is a home reversion scheme, where you choose to sell a portion of your property while retaining the right to reside in it until your passing or until you enter long-term care. This scheme is suitable for a very small number of clients with specific individual circumstances.

A Combination of The Above

In order to provide the most cost-effective and suitable solution for our clients, we understand that a single product may not always be the optimal choice.

Instead, we take a comprehensive approach, considering the entire spectrum of mortgage options that align with your current lifestyle and cater to your short-term and long-term needs, ensuring financial stability from age 50 to retirement and beyond.

We often encounter clients who have sought advice from restricted and limited mortgage advisors in Essex who lack independence and access to a diverse range of products.

It’s important to note that equity release in Essex should be considered as a last resort, exploring alternative options before making such a decision.

Getting Suitable Mortgage Advice in Essex

If you’re eager to progress and explore your options further, we are here to help you. You can get in touch with us by phone or book an appointment online for a complimentary and obligation-free consultation, during which we can delve into your mortgage choices.

During the consultation, we will address all your inquiries and provide recommendations tailored to your circumstances.

Rest assured, the call will only require your ages and address; no additional information is needed. Involving your family members in these discussions is always encouraged as their input can be valuable.

To accommodate your busy schedule, we offer evening calls to ensure flexibility around your work or children’s commitments.

Interest Only Mortgage in Essex Ending Soon, Leave Yourself Enough Time!

As your mortgage term approaches its conclusion, you can expect regular correspondence from your current interest only mortgage lender, reminding you to repay the capital.

To ensure a seamless transition, we advise allowing a window of approximately 6 to 12 months before your current product expires to arrange a new one.

We are excited to discuss your options with you in the near future. Rest assured, our consultation is free of charge and carries no obligation. We look forward to assisting you in finding the best solution for your needs.

To understand the features and risks, ask for a personalised illustration. Equity Release may come in the form of a lifetime mortgage or home reversion plan.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.

What Does a Mortgage Broker in Essex Do?

By its own definition, a broker is a business that can arrange or negotiate for something in particular, on behalf of their client. A mortgage broker in Essex is a business that functions in that same way, for a homeowner, home buyer or landlord who is looking to take out a mortgage on their property.

A mortgage is a loan that you have secured against your property, which as a property owner, you will pay back over a particular length in time, through monthly mortgage payments.

Jobs of a Mortgage Broker in Essex

Although a homeowner, home buyer or landlord are able to search for and apply for their own mortgage, you much more frequently find that they will look to utilise the services of a mortgage broker in Essex, because of the different services they can offer their customers.

Probably one of the most important jobs a mortgage broker in Essex can do, is that they are able to cross-reference your information against 1000s of unique products, across many different mortgage lenders. If you went directly to a bank, you will only be limited to deals from that company.

This isn’t completely a negative, as the best deal with that mortgage lender could still be the best one for you, but this can’t always be guaranteed. A mortgage broker in Essex is able to compare on your behalf, usually coming along with exclusive deals only available with that mortgage broker.

The job of a mortgage broker in Essex is more than this though, as there are lots of jobs that a mortgage broker in Essex can do, before and during your mortgage application and after your mortgage offer. They will also vary between companies; Not every mortgage broker works the same way!

For example, an area that we stand out in, is we are able to recommend suitable insurance options for our customers. Whilst it is an additional, optional cost (you don’t have to do it!), our mortgage and protection advisors have a duty of care to make sure you don’t lose your property, no matter the situation.

Before Your Application

When your mortgage process begins, you will most likely be speaking with the appointment booking team of a mortgage broker in Essex. Their role will be to take some general information from you & help you to find a suitable time slot for you to speak with a mortgage advisor in Essex.

As an alternative to this, you are usually able these days, to bypass the need to call up first, as many mortgage brokers in Essex (much like ourselves) have a user-friendly and simplified appointment booking system online, where you can typically choose what type of appointment you would like.

Once you have gotten booked in, the next step will be to attend your mortgage appointment with your mortgage advisor in Essex. Generally you will provide them with some further information to help them better understand what you are looking to do, so that they can help you progress.

From that point, they’ll start looking at a variety of mortgage deals, to help you find the most suitable one for what it is you wish to do. Some mortgage brokers in Essex offer their customers a limited supply of obscure mortgage lenders, others offer more, with some offering a whole of market service.

Whilst we can’t say we are a whole of market company, we can confidently say that we have a greatly sized panel of mortgage lenders, with mortgage products that range from standard mortgage enquiries, to specialist, and everything else you’ll find in-between.

Your mortgage advisor in Essex will provide you with a recommendation on the deal they believe is right for you. If you like that deal, they will look to obtain an agreement in principle (AIP) for you. Our mortgage advisors in Essex are usually able to get this within 24 hours of your appointment.

Estate agents will want you to provide them with this when you make an offer on a property and it will also show the person that is selling the property that you are committed to the offer you have made and are in a position to go forward with the sale.

Also, when you are at this point, you will need to go ahead and submit your documents to the mortgage broker in Essex you are working alongside. The documents that are required can usually vary between each mortgage lender and what you wish to achieve in your mortgage process.

Standard document requests will include proof of ID, proof of your income and deposit, last 3 months’ bank statements and payslips, as well as proof of VISA or right to work in the UK, if you happen to be a foreign national (this is usually done with a share code if you have migrated from the EU).

Documents that are typically requested in more niche situations, include a P60 (not all mortgage lenders will need this), business bank statements and tax calculations/year overviews if you are a self-employed applicant, and possibly also an employment contract depending on what your job is.

During Your Application

After you have achieved all of the latter steps, a mortgage broker in Essex will then work to verify your documents and provide you with their mortgage illustration, which will detail the agreed deal before they move on to submission.

Following on with this, they will progress on to your mortgage application submission, to the mortgage lender. From there, it’s a bit of a waiting game until they get back in touch with your mortgage broker in Essex to confirm if you have been approved or not.

The work won’t be stopping there, as mortgage advisors in Essex still have further steps to complete. They will send copies of your documents to your mortgage lender, as well as liaise with solicitors. During this time, our mortgage advice team can recommend property surveys to you.

You will generally come across 3 different types of property survey. Basic valuation, which will work out the value and resale value of the property, home buyers valuation, which will goes a little more in-depth and a full structural survey, which alerts you to any areas that perhaps you need to look at.

Much as they had done when it came to your mortgage deal in your initial mortgage appointment, your mortgage advisor in Essex will be able to best recommend which property survey is right for you to have taken out.

As you wait for the conclusion of your mortgage application process, you may also have queries or concerns, about what is actually going on. Mortgage advice teams with good reputations will make sure you are informed regularly, often via email, so you are always in the loop with your mortgage progress.

After Your Mortgage Offer

Eventually, the mortgage lender will come back to us with an outcome on your mortgage application, hopefully a positive one! If your mortgage application is successful, you will then receive a formal mortgage offer from the mortgage lender.

From here, the job mostly goes on over to your solicitors to complete your mortgage deal, so that you can eventually be comfortable in your home. There is still more that a mortgage broker in Essex can do for you though.

Here at Essexmoneyman, when you reach about the 6 month mark, before your mortgage deal is due to end, if you had previously took out your mortgage with one of our mortgage advisors, we will be back in touch to offer you remortgage advice in Essex and help you take the next mortgage step.

The Positives of Using a Mortgage Broker in Essex

As is clear, there is much a mortgage broker in Essex can do for you, such as saving you time and money on your mortgage process, whilst they work to reduce your stress levels and bring you one-step closer to completing your mortgage.

We are proud to say that here at Essexmoneyman, we really do care about our brilliant customers. After all, there is no Essexmoneyman, without you! We always put your best interests first, doing whatever we are able to do, to put you in the best position financially for your property goals.

To give you an example of this, if you wanted to take out a remortgage and got in touch with us for remortgage advice in Essex, but your mortgage advisor in Essex felt like you would benefit from taking out a product transfer, they will say so, as it is always about your best interests.

Furthermore, a mortgage broker in Essex may be able to get a mortgage lender to waive some of your mortgage fees, or maybe even look at incorporating them into your overall mortgage balance.

When you are in an appointment with one of our mortgage advice team, they will take a look through all of the costs and fees involved with your mortgage process, during your free mortgage appointment with a mortgage advisor in Essex.

Why use a mortgage broker in Essex?

Really, this is all down to you. If you would like to save time and money, stress and worries, then it may be beneficial to let an expert professional such as a mortgage broker in Essex, take on the bulk of the work for you.

We often find ourselves providing customers with expert mortgage advice in Essex, whether they be looking at first time buyer mortgages in Essex, to those looking for a buy to let mortgage in Essex and even more than that.

Book online today and speak with a member of our mortgage advice team, using our handy online booking feature, to benefit from a free mortgage appointment or remortgage review with a dedicated mortgage advisor in Essex today.

The Importance Of Having Your Mortgage Reviewed in Essex

Mortgage review advice in Essex

If you haven’t checked on your mortgage payments and rates in a while, perhaps it’s time for a change. We are regularly approached by customers who are checking to see whether they can access a better mortgage rate or not, and the majority of the time… they can!

In fact, most applicants show that they’ve been able to access a better deal for much longer than expected; this is why you should get your mortgage reviewed, especially when it’s for free.

What is a mortgage review?

Firstly, a mortgage review is a simple look over your current mortgage situation and personal and financial circumstances to see whether you can access a better mortgage rate or not.

A mortgage review is carried out by your lender, building society or mortgage broker in Essex. The process will work similarly to the way your original mortgage process did, starting with your enquiry through to completion.

During the process, you will also have to supply evidential documents such as Identification, bank statements, payslips and proof of address. This will allow your mortgage situation to be evaluated effectively as you have documents to back up factors like your income and how you are managing your current mortgage payments.

If you go through the mortgage review process and it turns out that you can’t access a better rate or you’re already on the best rate, you should know that you won’t be charged at this point if you use our services. So, you should take advantage of our free mortgage review, just to get an idea of what your current mortgage situation is.

Why is a mortgage review important?

A mortgage review is always worth it if you end up being on a better rate from it. Even though you’ve already been through the process before, doing it again could save you lots of money, further down the line.

Getting a mortgage review from time to time (usually every time your fixed mortgage term ends), may prevent you from slipping onto your lender’s standard variable rate on interest (SVR). Their SVR can usually be quite high. It’s likely to be higher than your current rate, meaning that you may see your monthly mortgage payments go up by quite a bit.

Remortgage and product transfer

If your mortgage review concludes that you can access a better rate, it’s now time to remortgage or transfer products. If your remortgage advisor in Essex can see that there are deals out there that you match the criteria to, they will try and pick one out that perfect for you through a remortgage or product transfer.

A remortgage is when you take out a new mortgage product with another lender and a product transfer is when you take out a new mortgage product with your existing lender. Either route will help you obtain a new mortgage deal at a new rate (hopefully more competitive!).

Taking out a new mortgage product and avoiding your lender’s SVR could save you a lot of money further down the line, and that’s why a mortgage review can be so important.

Taking out equity

During your mortgage review, you may get the option to take out a new mortgage product and take equity out too. You can release equity from your property for home improvements, to pay off debt or to even go on holiday, it’s completely up to you what you do with the money.

Releasing equity is a specialist subject remember, so if you are looking for a new mortgage deal and wanting to release equity too, we would recommend that you speak to a mortgage broker in Essex, like ourselves.

Free mortgage review

For a free mortgage review in Essex, get in touch with our team today. We have helped thousands of customers in the past achieve a better mortgage rate, even when they thought that they couldn’t!

For expert mortgage advice in Essex, contact Essexmoneyman today; open 7 days a week.

The Pros & Cons Of Using A Mortgage Broker In Essex

Have you ever thought of using a mortgage broker in Essex? Well, you may not realise it initially but the fact is there are some good reasons for it. Although, it is quite possible to proceed by directly contacting the lender, most people prefer dealing with a mortgage broker.

What Are The Pros & Cons Of Using A Mortgage Broker?

People often consider it a great chance to save money by not hiring a mortgage broker. It seems a cost-effective idea to proceed with everything on your own.

So you may also be one of those who prefer going directly to the Bank or Building Society. Another pro that was previously in the minds of the people was that “the Bank Manager knows my finances inside out”, although this changed when credit scoring was introduced.

It is also true that some lenders have various mortgage products only for the people who directly reach out to them. The main intention behind such ideas is to attract the consumers directly and grab their attention with exclusive offers.

Ultimately, it serves as a great tool to spread the business. The interesting part is that it is equally enticing to speak with a mortgage broker as well. Some offers can be found only through a mortgage broker.

From 2014 onward, it was not possible for the lenders to sell mortgages to anyone on a non-advised basis. At that time, it was a common perception that non-advisors were forcing their advice on the customers and not letting them benefit from consumer protection benefits that should come with speaking to a professional mortgage advisor in Essex.

There’s also the fact that taking an appointment with a bank can sometimes take months to happen. A mortgage broker in Essex can often get you booked in within that week.

Now you can easily understand how these kinds of issues gave rise to the importance of mortgage brokers and diverted the minds of the people towards them. As a result, more and more applicants started relying on the mortgage brokers and were quite willing to pay their fees.

Now they had more trust for the mortgage brokers who are often able to offer their services the same day, like ourselves. We are always ready to help you, so get in touch and we will put you through the qualified mortgage advisors either immediately or within the same day if we can.

Handling Difficult Cases

You might be wondering: what can be the reasons that make some mortgage applications far more difficult than they should. So let’s have a look at some of the examples: 

In the past years, it was much easier for the lenders to get the competitive edge by just presenting more enticing offers than their competitors. But it is not as simple now and the thing that distinguishes one lender from the other is the lending criteria.

To make all this easier, all you need to do is to discuss your situation with an experienced and professional mortgage broker and ask them whether they encountered a similar situation in the past or not. After a lot of research and hard work, a mortgage broker will hopefully be able to help you through and recommend the most suitable mortgage that matches with your budget and does not break the bank.

Here it is worth mentioning that even if the application is simple, we have more experience and knowledge that will surely help you in getting the most appropriate deal. For example, we have a professional team of mortgage advisors in York that will guide you about other professional options and services such as solicitors. When you keep yourself in touch with us, we will also update you about the surveys and protection information available to you.

Responsive Service

Our distinguishing feature is that we are far more fast and responsive compared to the other mortgage brokers. The biggest reason why customers often need the mortgage help is that everyone nowadays is very busy and needs someone who can lift off the weight. Our mortgage advisors will do that for you quite smoothly and you will definitely appreciate the benefits of having an expert on board.

Ready to discuss your mortgage plans? Feel free to Get in Touch with your specialist mortgage broker in Essex. We are available 7 days a week, to help you out in finding the right mortgage deal. 

We cover Essex and surrounding areas: Mortgage Broker in ChelmsfordMortgage Broker in BrentwoodMortgage Broker in Southend-on-Sea & Essexmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

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