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Can I use equity release to buy a new home?

Whether you are looking to purchase a new home to move into or purchase a property for a family member, we can explore your equity release options to see if it’s affordable for you.

Did you know you could release equity to buy another property? Contact us via email or phone to get started, and we’ll start the process. Let’s dive into what’s involved!

What mortgage type will be best for you to release equity to buy another house will depend on how much income you have, what you are looking to do with the new home, your credit score, how much equity you have, how much equity you are looking to release, and the purchase price of the new property.

There are two options: 
1.    Remortgage to release equity via a standard remortgage, available on repayment or interest-only terms.  
2.    Lifetime mortgage — an equity release plan designed for those over 55.  

We are going to focus on option 2 in this article. For various reasons, many of our later-life customers look to release equity to buy another house. These are mainly: 

•    Moving to a new, more expensive home.
•    Buying a property for a family member, adult child, or grandchild to live in and enjoy.  
•    Purchasing a holiday home. 
•    Divorce or separation arrangements.   

How much equity you can release from your house will depend on several factors. These may include your age or your partner’s age if it’s a joint application, your property’s value and construction, plus your health and lifestyle and your credit history.

If you are a buy-to-let investor looking to expand your portfolio, you’ll need a buy-to-let mortgage, or if you’re looking to rent your current home to buy a new one, this is called a let-to-buy mortgage transaction.

Our later-life lending team will listen to your requirements and recommend the best way forward. Traditional and RIO mortgages should be considered and discounted before an equity release plan is recommended due to the costs involved.

Speak to an advisor – it’s free! Schedule a free callback from one of our experts today for transparent and honest mortgage advice. We’ll search 1000s of purchase and remortgage deals for you!

SPEAK TO AN ADVISER

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

 

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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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