Equity Release

Equity Release explained

An Equity Release plan allows home owners aged 55 and above to access some of the cash locked in the value of their home.

The value of your home, minus any outstanding mortgage and any other loans secured against it, is the equity you have in your property. This equity is often passed on as an inheritance, however an increasing number of people are tapping into some of this wealth to help boost their retirement lifestyle.

After years of working hard to make monthly repayments, your home is likely to be your biggest asset, particularly if you have benefitted from an increase in house prices over the last few decades.

An alternative way to release the equity in your home would be to sell and downsize, however leaving the family home and neighbourhood can be an emotional upheaval.

With people living longer and pensions not being what they once were, for many, savings have to stretch a lot further to last throughout retirement.

Are you eligible?

Tens of thousands of people are already enjoying the benefits of unlocking the cash from their home. However, it is not suitable for everyone, which is why it is important to get independent advice and compare equity release plans before you make a decision.

You may be eligible for a lifetime mortgage if:

You are aged 55 and above

You are a homeowner with a
property worth at least £70,000


Equity Release has evolved in recent years with a range of plans available that can be tailored to fit your requirements.

There are two types of lifetime mortgage:

Lump sum

Lifetime mortgage

A lifetime mortgage is a form of Equity Release plan where a loan is secured against your property to provide a tax-free cash lump sum to spend as you wish, with typically no monthly repayments to meet.

Compound interest is added to the mortgage until the plan comes to an end. The loan plus interest is eventually paid back when the home is sold, usually when you move into long-term care, or when you and your partner die. You can typically release between 10-55.5% of the value of your property with a lifetime mortgage, depending on age, health and lifestyle.


Lifetime mortgage

Drawdown lifetime mortgages work in the same way as lump sum lifetime mortgages but with added flexibility.

Once you know the maximum amount of money you can release, after an initial release amount you can then choose to ‘drawdown’ the cash in stages as and when you want to. The interest is only added on the amount released so it adds up more slowly than it would if you released the full amount at the outset. Drawdown plans are a flexible option and can form an essential part of planning future finances.

How much can I release?

The amount you can release depends on your age, house value and your health and lifestyle. Generally, the older you are, the more you can release. Some providers take health and lifestyle choices into consideration which could enable you to release more money. As equity release brokers we can compare equity release plans and recommend one that best suits your circumstances.

Different plans for different needs

Your adviser will be able to talk through all the options available and tailor your Equity Release plan to suit your needs

What would you
like to do?
The type of plan that
might be suitable
Guarantee an inheritance for my family
Protected Lifetime mortgage or Home reversion
Pay the interest monthly to reduce the overall debt
Interest payment Lifetime mortgage
Reduce the size of the loan on which interest is charged
Voluntary partial repayments Lifetime mortgage
Have flexibility to move home in the future without penalty
Downsizing protection Lifetime mortgage
No interest added on money released
Home reversion
Take the maximum amount possible
Lump sum Lifetime mortgage or Home reversion
Take some now and have more to come back for if I need it
Drawdown Lifetime mortgage or Home reversion
Use my health conditions to get me more money
Enhanced Lifetime mortgage

Spend the money however you like

If you are considering releasing a tax-free cash lump sum then you probably have an idea in mind of how you want to spend it

Some of the most popular reasons for releasing equity include:

Making home improvements

Clearing credit cards or loans

Paying off existing mortgage

Helping family onto property ladder

Taking a holiday

Reducing Inheritance Tax

Read more about our Partners

To ensure you receive the very best service and solution when releasing equity from your home, we only work with lenders we implicitly trust. These time-served and proven lenders have built up fierce reputations, giving you peace of mind when investing in one of their products.