Equity Release explained


What is equity release?

Equity release is a way to free some of the capital tied up in the value of your home without having to move.

Why equity release?

For most people, retirement brings the freedom to make the most of all sorts of opportunities. To do what you want, where you want and when you want to do it. However, for some people income at this time simply won’t match these expectations. 

Equity release is one option which may be available to you to help you to maintain your lifestyle through retirement.

How does equity release work?

Equity release works by releasing some of the cash which you have tied up as equity in your home. Over the last 25 years property prices have risen substantially and it’s no surprise that for most the family home is their most valuable asset. For this reason, the amount of money available to you through equity release could be considerable.

An equity release provider will offer you one of two options when choosing a plan –

Lifetime Mortgage – This is where a loan is extended to you and secured on your property. This loan is paid back with interest from the proceeds of sale of your home after both you and your partner move into long term care or die.

Home Reversion – This is where a home reversion company will purchase some or all of your property while allowing you to continue living in the property until both you and your partner move into long term care or die.

Once you have selected a plan which best fits your circumstances you will be able to opt for a cash lump sum, regular cash payments or a lump sum and cash payments. You may also opt to release some equity now, and then some more at a later date.

Who is eligible for equity release?

Equity release products are available to people who are at or nearing retirement age and who own their own home.

To qualify for an equity release product the following circumstances will need to be met:

  • You or the youngest person in a joint application will need to be aged 55 or older at the time the product is taken out
  • You will need to own your own home
What can I spend the cash on?

While the reason people choose equity release varies the cash released can be spent on what ever you like, from taking a world cruise to making home improvements or simply to just make life a little more comfortable.

Advice on equity release.

The decision to opt for equity release is an important one and should not be taken lightly or without taking professional advice.

Our specialist advisers are here to help – we understand that everyone is different, and so your needs and circumstances will be too. Our specialist team can work with you to determine your goals and offer advice as to whether equity release is the right option. If equity release isn’t right for you they will advise so and help you to find an option which is.

If you feel that equity release may be right for you, or if you’d just like to know more you can call 0800 622 6724 or request a call back at a time that suits you.

How much could you unlock with Equity Release?
Your age:
Value of your home:

Get advice and compare the leading providers including:

Equity Release Providers

Free phone 0800 622 6035 or request a call back to find out more.