A guide to Equity Release

How does it work?

Equity Release helps you access equity (cash) that is tied up in your home. Unlock the cash built up in your home without the stress of moving home.

There are certain equity release plans available that allow you to have one lump sum or smaller monthly payments depending on your needs and the home reversion plan you choose. Get the best rates, release the most equity and enjoy the retirement you deserve.

Can I still move home?

Normally, the money obtained from equity release is only repaid when customers die or move into long-term residential care. But what happens if you want to move house after you have taken out an equity release

With In some cases your Equity Release provider may be able to transfer your plan onto a new property, allowing you to move home. This will depend on several factors, including whether the new property meets the lender’s criteria

Is equity release a good option?

If you’re over the age of 55 and owner of your main residence, find out if equity release is right for you.” The amount you can access depends on several factors, including your specific needs, the age of the youngest homeowner (55+) and the value of your property, which must be a minimum of £70,000. Providing any existing mortgage is first repaid, which is a condition of equity release, remaining funds can be used for a variety of needs including carrying out home improvements, providing a financial gift to loved ones, supplementing your retirement income or even booking the holiday of a lifetime

There are two different types of equity release to consider, a lifetime mortgage and a home reversion plan.

A lifetime mortgage is a loan secured against your property where you maintain 100% home ownership and release funds either as a lump-sum, or in smaller amounts over time, depending on your individual circumstances. You’re not required to make any regular repayments, as the money you release, plus accrued interest, is repaid on death or moving into long-term care

The second is home reversion which allows you to sell some or all of your home to a reversion provider without moving, this is similar to being a rental tenant

•“Equity Release may have an impact on your entitlement to means tested benefits now or in the future.”

•“Advice is required before proceeding with equity release.”