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How to use Equity Release to buy a new home

If you’re 55+ and have been eyeing up your dream home but aren't sure how you'll be able to afford it. Equity Release could help you purchase a new home! From a fresh space to live to a holiday retreat. We delve into how to use Equity Release to buy a new property.

Say you have an existing mortgage that you would like to pay off. You can clear your outstanding costs rather than borrowing more. Avoid committing to larger monthly payments. And even receive additional funds to purchase your new property!

The property sale, mortgage repayment, and new property purchase are all finalised together. Cash from your current property and the equity you release from the new home will give you enough to purchase your new home. Without having to make any monthly payments if you don't want to.

Other options to consider include paying all or some of the interest off. Either with regular monthly payments or ad-hoc voluntary payments. Our advisers can discuss payment options for the best plan available.

Once you have found the property you wish to buy. You sell your old property. Clear the mortgage, and move into your new home. Your new home will have the Equity Release mortgage on it. The process is similar to a regular property purchase. But you'll have a new home without monthly mortgage payments and not based on your affordability.

Let us help you achieve your dream of owning a holiday home. Either in the UK or abroad. Releasing equity from your primary residence can help. Allowing you to split time between your main home and your holiday home. Six months in each! You may want to purchase the property outright. So there is no additional standard mortgage requirement.

If purchasing a holiday home in the UK, remember stamp duty. Depending on the value of your second home. More information on stamp duty for second homes is here: hoa.org.uk/advice/guides-for-homeowners/i-am-buying/stamp-duty-for-second-homes/

Regular changes and updates mean more options are available. Even if you have been refused Equity Release in the past.

Why not see if you can release equity today? If you have further questions, speak with one of our qualified advisers. Hit reply-to to chat instantly

SPEAK TO AN ADVISER

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Reference: https://www.moneyrelease.co.uk/Equity-Release-To-Purchase-Property/

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Fairview Financial Ltd is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Fairview Financial Ltd is registered in England and Wales no: 10912424. Registered office: 107 Promenade, Cheltenham, GL50 1NW.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

@ 2020 by Fairview Financial

Our Fees        

A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Our standard fee for mortgages is £395 and this is paid when the mortgage is offered. We charge a fee of £295 First-Time Buyers. Other fees may apply depending on the complexity of the work involved or loan amount. The maximum fee we can charge is £795.

Our standard fee for Equity Release is £895 and this is paid on completion.

We also receive a commission from the lender that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed. If we receive a commission, this will not affect the cost payable by you.

THINK CAREFULLY ABOUT SECURING OTHER DEBTS AGAINST YOUR HOME.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

EQUITY RELEASE: THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, PLEASE ASK FOR A PERSONALISED ILLUSTRATION. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.


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