Woamn sat on neutral sofa smiling

Equity release

Unlocking the value in your home to give you financial flexibility

Unlocking the value in your home to give you financial flexibility

Find an adviser
Man drinking tea

Equity release

Equity release is a way to unlock money from your home if you don’t want to move but do want to use your capital differently to support your life or your family. You won’t have to pay back until your property is sold, you die or you move into long-term care and it can be a good way to boost your retirement income. Equity release won't suit everybody – or every situation and it’s important to speak to an experienced financial adviser about the risks involved.

How can you qualify for equity release?

What is equity release?

Equity release allows older homeowners to access some of the value tied up in their homes. You can take the money as a cash lump sum or in several smaller amounts. People often choose this option to supplement their retirement income, make home improvements or help children or grandchildren get onto the property ladder.

How can I qualify for equity release?

You should be eligible for equity release if you meet the following criteria:

  • you’re over 55;
  • you’re a UK homeowner;
  • your property is in reasonable condition and is worth more than £70,000; and
  • you have little to no mortgage left on your property.

It may not be a suitable option if you have dependants living in the property.

How can you qualify for equity release?

Equity release allows older homeowners to access some of the value tied up in their homes. You can take the money as a cash lump sum or in several smaller amounts. People often choose this option to supplement their retirement income, make home improvements or help children or grandchildren get onto the property ladder.

You should be eligible for equity release if you meet the following criteria:

  • you’re over 55;
  • you’re a UK homeowner;
  • your property is in reasonable condition and is worth more than £70,000; and
  • you have little to no mortgage left on your property.

It may not be a suitable option if you have dependants living in the property.

Different types of equity release

Lifetime Mortgage

A Lifetime Mortgage allows you to take out a loan secured on your property, providing it’s your main residence. You can ringfence some of the property value as inheritance for your family and you can choose to make repayments or let the interest roll up. The mortgage amount, including any interest, is paid back when you die or move into long-term care.

Home Reversion

Home Reversion allows you to sell all or part of your home for a lump sum or regular payments. You can continue living there rent-free until you die, but you’ll have to pay to maintain and insure it. You can ringfence some of the property value for later use. At the end of the plan, the property is sold and the proceeds are shared according to the remaining proportions of ownership.

Pros and cons of equity release

The main advantage of equity release is that it gives you money to spend now rather than leaving it tied up in your property. However, it’s important to remember that it often doesn’t pay you the full market value for your home. It is also likely to reduce the amount of inheritance you’ll leave after you die. Our advisers can help you decide whether equity release is right for you and help you find the best deals if you choose to go down this route.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

A Lifetime mortgage is a loan secured against your home. 

A Lifetime mortgage may affect your entitlement to state benefits and it will reduce the value of your estate.