Equity release

What is equity release?

Equity is the difference in value between how much your home is worth and any mortgage or other debts secured against it.

Equity release is a way of turning some of this value in your home into tax-free cash. It could be a great option if you don’t want to downsize or move home, but need some extra money to help make your life easier.

What can equity release be used for?

You can use the money you release to pay for almost anything you like. Whether that’s helping out family members, paying off an interest-only mortgage, buying a new car or funding a holiday.

Find out how much you could release from your property.

Lifetime mortgages

There are various ways to release equity from your home. A lifetime mortgage is a loan secured against your home and is one of the most popular ways to release equity. With a lifetime mortgage:

• You’ll receive a tax-free cash lump sum
• You’ll continue to own your home and can stay in it for the rest of your life.
• You can move your lifetime mortgage to another property, providing that the new property meets the lending criteria of your product provider
• You don’t have to repay the lifetime mortgage until the property is sold, which is usually either on your death or move into long-term care (or of the last borrower, for joint arrangements)
• If you can afford to do it, you can choose a lifetime mortgage that allows you to pay some or all of the monthly interest to help reduce the overall cost of the loan.

With both home reversion plans and lifetime mortgages, it's worth bearing in mind that you’ll continue to be responsible for the upkeep of your house, and that taking equity out of your home will reduce the value of your estate, or the inheritance that you leave to your beneficiaries. Also, any money that is gifted to family could be subject to inheritance tax. If you’re using equity release to repay an existing mortgage, this may cost more in the long-term.

Our equity release advice service

As a business we’ve helped over 80,000 people decide if equity release is right for them and to date, we've enabled our customers to release over £1 billion of equity from their homes.

We can help you decide if equity release is right for you, and if it isn’t right for you, we’ll tell you.

Our advice comes with a no obligation guarantee - meaning that our advice and arrangement fee of £1,100 is only payable if you decide to take out a recommended plan.

All of our advice and support can be offered face-to-face or over the phone.

Find out more about our equity release advice service.