What is Equity Release?

Equity release is a financial product designed for homeowners who are aged 55+. Equity release allows our clients to access the money tied up in their property while continuing to live in it.

As you approach retirement, you may find yourself considering your financial options. Equity release can be used for various reasons, examples can be found below:

A List of Equity Release Reasons

How Much Can I Release?

The amount of money that you can release from an equity release scheme will be based on a few factors such as how old you are, your health, whether you have a partner and the value of your property. The amount will also vary by lender so seeking good quality advice is vital.

Equity Release Types

There are two main forms of equity release product available, a lifetime mortgage and a home reversion plan.

A Lifetime Mortgage (Type 1)

A lifetime mortgage is the most popular type of equity release plan.  You can choose to take tax-free money out of your home, either as a lump sum or in small chunks as and when required.    

With a lifetime mortgage, you’ll retain full ownership of your home.  Lifetime mortgages are flexible, you can choose to pay monthly interest payments, just like a regular mortgage, or make no payments and let the interest roll up.  

Seeking good advice is important, we come across situations on a regular basis where clients have received bad advice or advice which has been restricted.  

A Home Reversion Plan (Type 2)

A Home reversion plan is less common type of equity release scheme.  With a home reversion plan, you sell all of part of the property at less than its market value in return for a tax-free lump sum.   

The lump sum of cash can then be used to fund long term care if you are looking to stay in your home.  

Home reversion plans are rarely recommended as the best way forward; however, they are suitable for the right applicant.  

The Benefits of Equity Release

Also, you can also choose to take the money as a lump sum or in smaller chunks as and when required, saving you interest. A good later life advisor will guide and recommend the best way forward for you based on your plans.

Important Considerations

While equity release can be a useful financial tool for many clients, it’s important to consider the following aspects before deciding:

Book a Free, No-Obligation Consultation! 

If you feel ready to take the next step with us, we’d love to hear from you. You can telephone or book online to arrange a free, no-obligation consultation where we can discuss your later life mortgage options. 

We’ll answer all your questions and recommend a way forward. We don’t need anything in the call other than your ages and your address. 

Evening calls are available to fit around any work or family commitments also. 

Related Equity Release Guides

Read more guides

UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

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