Can You Release Equity to Buy Another House?

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Considerations of releasing equity to buy another house (Age 55+) 

There Are 3 Main Product Types Available to You to Release Equity, These are: 

Yes, you can release equity to buy another property.  There are 2 ways to do this: 

1. Remortgage to release equity – this is via a standard remortgage, available on repayment or interest-only terms.  

2. Lifetime mortgage – this is a type of equity release plan designed for the over 55’s.  

Whether you are looking to purchase a new home to move to yourself or purchase a property for a family member we can explore your equity release options to see if it is viable for affordable for you.

If you are a buy to let investor looking to expand your portfolio, you’ll need a buy to let mortgage or if you’re looking to rent your current home to buy a new one, this is called a let to buy mortgage transaction.

This reast of this article is aimed at those aged 55+ looking to release equity to buy another house via a lifetime mortgage or alternative products.  

Considerations of Releasing Equity to Buy Another House (Age 55+) 

How much equity you can release from your house will depend on several factors including your age, or your partners age if it’s a joint application, your property value, its construction, your health, your lifestyle, and your credit history.

We find that many of our later life customers look to release equity to buy another house for various reasons, these are mainly: 

• Moving to a new home that is more expensive.
• Buying a property for a family member, adult child, or grandchild to live in and enjoy.  
• Purchasing a holiday home. 
• Divorce or separation arrangements.   
• Anything else… 

There Are 3 Main Product Types Available to You to Release Equity, These are: 

• A traditional remortgage.  
• A retirement interest-only mortgage (RIO). 
• Equity release plan in the form of a lifetime mortgage.  

Our later life lending team will listen to your requirements and recommend the best way forward for your needs.  Traditional mortgages and RIO mortgages should be considered and discounted before an equity release plan is recommended due to the costs involved.

What mortgage type will be best for you to release equity to buy another house will depend on how much income you have, what you are looking to do with the new house, your credit score, how much equity you have, how much equity you are looking to release, and the purchase price of the new property.

Our team are on hand 7 days a week to help and advise you accordingly.  

Written by
Dan Osman
Head of Later Life at UK Moneyman Ltd.
CeMAP & CeRER Qualified

3rd April 2024

Date Last Edited:

About the Author

Dan Osman

Head of Later Life at UK Moneyman Ltd.

Dan joined the Financial Services sector back in 2002, but actually left the industry in 2008 before returning some years later. During the in-between years, he took a degree to become a Social Worker specialising in working with vulnerable adults.

Upon his return, Dan combined his experiences in the two sectors to become an Equity Release Specialist and he now heads up UK Moneyman’s Later Life Lending proposition. He genuinely believes in a holistic approach and always ensures his clients receive a proper consideration of all the options available, including non-lending alternatives to Equity Release.

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