If you’re looking for more than just a bank, then you might want to consider equity release through a building society. But, what does it mean to be a member of a building society?
With not-to-be-missed free online events about equity release, Nationwide Building Society is one of the leading equity release providers in the UK. But is equity release with Nationwide right for you?
By reading this article, you will learn:
- What is a building society?
- Why consider equity release with Nationwide.
- The pros and cons of Nationwide equity release.
In search of the top equity release providers, we combed through over 220 different plans, analysing who offers the most flexible products. Through our analysis, we can confirm that Nationwide is worth your consideration.
What’s Equity Release & How Does it Work?
Designed for homeowners over 55, equity release allows you to gain access to the value of your property while still living there. The money is completely tax-free and can be released in a monthly salary, in a lump sum, or in a cash reserve that’s always accessible. The loan and compound interest are usually repaid from the home’s sale when the last owner dies or enters long-term care.
What are the Most Common Equity Release Plans?
The 2 most common equity release plans are a lifetime mortgage and a home reversion scheme. While you retain 100% ownership of your property with a lifetime mortgage, you will sell all or a portion of your estate with a home reversion scheme. Both plans are intended to last for life and are repaid when the homeowners have died or entered long-term care.
What is a Building Society?
A building society is a mutual organisation whose members own the assets. Building societies provide banking and financial services, including savings and home mortgage loans, among other things.
An Introduction to Nationwide
Originally known as the Co-operative Permanent Building Society, they were established in London in 1884. With massive expansion over the years, they eventually became Nationwide in 1970. Today, they are a member-owned mutual, aiming to serve the UK community. One of the benefits of becoming a member of Nationwide is that you can access member-only products.
What Is the Maximum Equity I Can Get from Nationwide Building Society?
The maximum equity that you can unlock with Nationwide is £1 million. However, the maximum is £515,000 if you are located in Wales or Scotland. The amount of cash you can unlock will depend on your age and property value.
The Pros & Cons of Equity Release with Nationwide
The biggest pro of Nationwide is that there are no valuation or product fees. The biggest con of equity release with Nationwide is that they only offer lifetime mortgages.
Pros of Equity Release with Nationwide
- £1000 cashback on completion.
- People with existing Nationwide mortgages can get a loan up to age 94.
- Flexible repayment options.
- There’s flexibility to borrow more in the future.
- There are no mandatory monthly repayments.
- Downsizing protection.
- Free valuation and no application fees.
Cons of Equity Release with Nationwide
- You can borrow less if you’re in Wales or Scotland.
- The interest can compound quickly if you don’t make any repayments.
- Loans are not available in Isle of Man, Isles of Scilly, Channel Islands, non-mainland Scotland or Northern Ireland.
Nationwide Product Features
Nationwide offers lifetime mortgages with flexibility features. These include:
- No mandatory monthly payments.
- Fixed interest rates for life.
- Maximum loan amount of £1 million.
- Downsizing protection.
- No fees and a free valuation.
- Free specialist advice.
- Cashback on completion.
- No negative equity guarantee.
- Flexible repayments.
- Flexibility to borrow more in the future.
Is Nationwide Right for Me?
You will know that Nationwide is the best option for your equity release if they’re recommended by your financial adviser. As one of the leading industry providers, Nationwide Building Society is definitely worth considering for equity release, whether you’re an existing member, or not.
Is Nationwide Not Ideal?
Luckily, we have comprehensive information on all the top equity release companies in the UK in Jan 2022. Check these out here!