Equity Release

Release money from your house to fund the next adventure…

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What is Equity Release?

Equity Release is a way to unlock the money tied up in your property and remain in your home. As you’ll be taking out a loan against the value of the property, that proportion won’t be ‘owned’ by you until it is (or if) repaid.

Equity Release covers a range of products that allow you to free up the equity that’s tied up in your house if you’re aged 50 or above. You can take the money you release as a lump sum or in multiple, smaller amounts; or even combination of both.

How can it help me?

You could use the money to:

  • Settle any debts you owe
  • Home improvements
  • Help with divorce settlements
  • Help be ‘Bank of Mum and Dad’
  • Travel

Who can benefit?

An equity release plan, allows you to release money from your home. The amount you can release depends on:

  1. Minimum value of your property – £70,000.
    The higher your property value, the more you should be able to release.
  2. Minimum age of youngest applicant – 55.
    All applicants must be over 55 to be eligible for equity release.

When releasing equity, it’s tempting to focus on the immediate boost you will get from the money you unlock, but you need to look at how it will affect your future choices and financial situation in later life.

Some providers allow you to release even more money if you have a qualifying lifestyle or health condition. Many of these are quite common, including being a smoker, diabetes, having high blood pressure or high cholesterol.

When your put through to an adviser they will ask the right questions to get you the correct amount at the best rate.

Who can use Equity Release?

Whether equity release is the right option for you depends on your circumstances such as:

  • Your age - all need to be 55+
  • Your income
  • How much money you want to release
  • Your plans for the future

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Lifetime Mortgage

A loan is secured on your home, but you can keep living in it.

Usually, there are no monthly payments to be made. When you pass away, or go into permanent care, your home is sold. The proceeds are used to repay the loan and any interest.

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Home Reversion

You can sell some or all of your home to an Equity Release provider.

The money can be paid as a lump sum, in instalments or both. It’s still your home until it’s sold. Any remaining share could be ring-fenced and left in a will.

This can be either a lifetime mortgage or home reversion. To understand the features and risks, ask for a personalised illustration.

“The most popular form of equity release product is called a lifetime mortgage, which is aimed at homeowners aged 55 and over. It allows you to borrow against the value of your home, while retaining 100% home ownership for your lifetime, without needing to make monthly payments.”

https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/what-is-equity-release-and-how-does-it-work/

“The average amount of equity customers are releasing increased from £72,340 to £94,982”

https://www.financialreporter.co.uk/later-life/equity-release-market-expands-by-a-third-to-194bn-in-2021.html