What is equity release and do I qualify?

Equity release means unlocking or releasing cash from your property. It can be a great solution for homeowners who are typically 55 years old and over. Typically, you can use the cash for:

  • Repaying your existing mortgage or unsecured debts
  • Providing cash gifts to your loved ones
  • Making home improvements
  • Improving your standard of living
  • Enjoying your wealth and taking some holiday

If you’re under 55 and looking to unlock some of your property’s cash, have a look at our remortgages section.

How does equity release work?

You can release equity from your home either through a lifetime mortgage or through a home reversion plan.

How does lifetime mortgage work?

Lifetime mortgage means you borrow the funds, and when you die or move into long-term care, the loan is repaid from your estate.

It tends to be a more popular option than a reversion plan as, as you retain ownership of the property.

The interest is rolled up into the loan, so there are no monthly repayments necessary. If you don’t want interest to be rolled up, you can make regular payments to cover the interest, ensuring the amount owed stays the same.

If you’re not sure what this means, get in touch and we’ll explain everything clearly and without the jargon!

How does home reversion plan work?

Home reversion plan means selling your home, or a portion of it, to the loan provider. In exchange, you receive the funds and the right to remain in the property until you die. They’re available to people over 65.

The main benefit is likely to be the higher amount of funds you can release. There are some additional things to consider:

  • You’ll no longer own 100% of your home, so your estate won’t benefit from all of the house price growth.
  • It can be difficult to reverse the deal, as you’ll have sold all, or part, of your home.

Because you’ll get less than the current market value, if you die soon after, you’ll have sold the property cheaply, impacting your inheritance to your loved ones.

Understand equity release with our independent advice

We’re experts in equity release and make sure you and your family are happy with all the options available to you.

Equity release expertise

We hold the specialist qualifications required to advise you on equity release and we’re whole-of-market advisers. This means we’ll help you consider the alternatives to equity release first. This could include conventional mortgages, selling your home and downsizing, using other savings and investments or asking for help from friends or family.

Including your family members in the whole process

We welcome family members to be present during our consultation, as equity release can affect their inheritance.

Of course, we’re happy to run through the options separately. We’ll take the time to ensure you understand all aspects, without rushing into anything.

Speak to us about equity release

Get in touch with our expert equity release adviser – we’ll be happy to help.

This is a lifetime mortgage to understand the features and risks, ask for a personalised illustration