A guide to Equity Release

How does it work?

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

There are certain schemes available that allow you to have one lump sum or smaller monthly payments depending on your needs and the Equity Scheme 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

In some cases your Equity Release provider may be able to transfer the debt onto your new property. Allowing you to move home. However, if the property is worth less than the current property you're in, the provider may decide not to transfer the debt.

Is equity release a good option?

If you’re over the age of 55 and owner of your main residence you might find that equity release is a great way to give yourself a cash boost. There are two different types of Equity release to consider.

This first is a Life time mortgage where you can usually borrow a percentage of your property. *This is dependent on the providers. Freeing up some extra cash. 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. You can continue living in your home rent free for life or until you need to move to a care facility. You will only need to keep the house maintained and in good condition.

Things to remember…

1. Don't borrow the full amount you need in one go

2. Ensure you use a company that's a member of the Equity Release Council.

3. Get advice before you do it

4. It can affect your benefits