Understanding Equity Release
Equity release can provide homeowners with access to tax-free cash from the value of their property while continuing to live in their home, offering greater financial flexibility in later life. Join us as we explore the features, benefits, and considerations of equity release, helping you make informed decisions about unlocking the value of your home to support your retirement goals.
Types of equity release
Lifetime Mortgages
A lifetime mortgage is the most common type of equity release, allowing you to borrow money secured against your home while retaining ownership. The loan, plus any interest, is usually repaid when your home is sold after you pass away or move into long-term care.
Drawdown Lifetime Mortgages
A drawdown lifetime mortgage lets you release smaller amounts of money as and when you need it, rather than taking the full amount in one lump sum. This can help reduce the interest charged, as interest is only applied to the money you have withdrawn.
Interest Payment Lifetime Mortgages
An interest payment lifetime mortgage gives you the option to make monthly interest payments, helping to reduce the amount of interest that rolls up over time. This can help preserve more of your home's value for your beneficiaries.
Home Reversion Plans
A home reversion plan allows you to sell part or all of your home to a provider in exchange for a tax-free lump sum or regular payments, while continuing to live in your property rent-free for the rest of your life.
A lifetime mortgage is a loan secured against your home. To understand the features and risks, ask for a personalised illustration.
Equity release may reduce the amount of inheritance you leave and could affect your tax position and entitlement to means-tested benefits.
To understand the features and risks of equity release, ask for a personalised illustration.
Start Your Equity Release Journey
Delve into the world of equity release.
Benefits of Equity Release
Discover the financial benefits of equity release and how it could work for you.
Acccess Tax-Free Cash
Unlock money from the value of your home without having to sell or move out.
Financial Flexibility
Use the funds to supplement retirement income, cover living costs, or support family members.
No Mandatory Monthly Repayments
With many plans, repayments are optional, helping to ease financial pressure in retirement.
Potential Inheritance Protection
Some plans allow you to ringfence part of your property's value for your beneficiaries.
Potential Drawbacks
Explore the factors to consider when choosing equity release and make informed decisions about your financial future.
Reduces the Value of Your Estate
The amount you leave to family or beneficiaries may be significantly reduced.
Interest can Roll up Quickly
With a lifetime mortgage, interest is added to the loan over time, meaning the amount owed can grow substantially.
Limits Future Borrowing
Equity released reduces the remaining value of your home that can be used for other financial needs later.
Impact on Inheritance Planning
It can make it harder to plan or guarantee what you leave behind.
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*This information is intended as a general guide only and should not be considered as a recommendation or advice regarding the suitability of any equity release product for your situation. All equity release options are subject to the applicant (s) meeting the specific eligibility criteria of the lender. The figures provided by this equity release calculator are illustrative only and may vary depending on your individual circumstances and the lender's assessment. We recommend speaking to a qualified adviser for personalised equity release advice tailored to your needs and circumstances.