equity release??

justwonderin_2

Hi, not sure of the correct terminology here but my partner & I would like to raise around 50k, our home is worth approx 200k, we have no mortgage at present but are considering having one, would it be a remortgage or something else that we need to look for? I have read the advice about approaching a broker rather than our bank but I'm not sure what I need to ask for.
Sorry if this seems a rather basic request but we have no direct experience of the procedure, this forum seems as good a place as any to get a fair reply.
Thanks in advance.

TEDDYRUKSPIN

>>Hi, not sure of the correct terminology here but my partner & I would like to raise around 50k, our home is worth approx 200k, we have no mortgage at present but are considering having one, would it be a remortgage or something else that we need to look for? I have read the advice about approaching a broker rather than our bank but I'm not sure what I need to ask for.
Sorry if this seems a rather basic request but we have no direct experience of the procedure, this forum seems as good a place as any to get a fair reply.
Thanks in advance.<<

You state you have a home worth 200k but have no mortgage? Does this mean you have fully paid off this house or that you do not own this home? If you have fully paid and own this house, it really depends on the method you want to use to raise 50k?
Is this for a deposit on another house or for personal use?
You have several options such as a secured loan from a financial source or go to the cheapest bank which will give you an equity release loan for a mortgage? Understand?

You should give out more details. As for a broker, they will help you but for a charge!

justwonderin_2

Thanks for the quick response, yes we own the house, we havent had a mortgage on it but we would like to raise the money for personal use.
We're just not sure of the best route to take, what to ask for, how much we'll pay etc. We both work, earning around 30k p/a between us, I'm 46y/o and the main earner of the two.
Not sure I understand the term equity release, is this for when you have no current mortgage, why would this be needed for a mortgage.
Thanks re the broker, I was just following the advice from the main site ie use a "whole of market broker", I obviously need to sharpen up if we're not to be ripped off.

EdInvestor

See a broker to discuss your options.I'd have thought you just need a normal mortgage - equity release is basically for retired people.

You could of course consider selling the house and buying a new cheaper one, thus releasing the 50k without actually borrowing any money.

TEDDYRUKSPIN

Quote, "Thanks for the quick response, yes we own the house, we havent had a mortgage on it but we would like to raise the money for personal use.
We're just not sure of the best route to take, what to ask for, how much we'll pay etc. We both work, earning around 30k p/a between us, I'm 46y/o and the main earner of the two.
Not sure I understand the term equity release, is this for when you have no current mortgage, why would this be needed for a mortgage.
Thanks re the broker, I was just following the advice from the main site ie use a "whole of market broker", I obviously need to sharpen up if we're not to be ripped off."

Hi. Equity release is rather similar to secured loan which is a borrowed value on your price of your house. So much similar to a secured loan but apr is usually lower. However, if you can't pay it back they can force you to sell the house to repay it.

If you need 50k for personal use and not for another mortgage, it seems that you need a loan but secured on your home or your wage. Just have a scan on https://www.moneysupermarket.com for the cheapest rate. At a last resort a independent broker. At the end of the day, every bank or independent broker will help as they are all after your business.

Since your 46, you need to sit down and see how you can pay this off? You might have to pay it off in 14 years?

herbiesjp

A lot of lenders will regard this as a re-mortgage of an unencumbered property.

You should have no probelms in getting anything agreed based on the details you state