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What is Equity Release?

Equity release plans allow homeowners to unlock the value of their property and convert it into cash without having to sell their home. These plans are typically available to homeowners aged 55 and over and can provide a lump sum, regular income, or both. Equity release products are regulated by the Financial Conduct Authority (FCA), ensuring consumer protection and oversight.

Key Features and Benefits

  • Access to Funds: Release a lump sum, regular income, or both from the value of your home.
  • No Need to Move: Continue living in your home while accessing its value.
  • Flexible Options: Choose from different types of equity release schemes to suit your needs.
  • No Negative Equity Guarantee: Thanks to the standards set by the Equity Release Council (ERC), you will never owe more than the value of your home.
  • Interest-Only Payments or Roll-Up Options: Some plans allow you to make interest-only payments, while others add the interest to the loan balance (known as roll-up).

Factors to Consider

Eligibility

Equity release is usually available to homeowners aged 55 and over with a qualifying property. The amount you can release depends on factors like your age, the value of your home, and the type of equity release scheme you choose. Make sure your property meets the lender's criteria, which often include the type and location of the property.

Costs

Understanding the costs associated with equity release is crucial. These can include interest rates, arrangement fees, valuation fees, and legal costs. The interest on the amount you release can grow over time, especially with roll-up plans. Compare different plans to ensure you understand all the costs involved.

Impact on Inheritance

Releasing equity from your home will reduce the value of your estate, which means you might leave less to your loved ones. Some plans allow you to protect a portion of your property’s value to pass on as an inheritance. Discuss the impact on your estate with your family to ensure everyone understands the implications.

Impact on State Benefits

Taking out an equity release plan can affect your eligibility for means-tested state benefits. The additional income or savings may reduce the benefits you receive. It’s crucial to discuss this with an adviser to fully understand the implications.

Advice

Seeking professional advice is essential when considering equity release. An adviser can provide personalised recommendations based on your situation and goals. They can help you understand the pros and cons and find the best plan for you. Speaking to an adviser is crucial to ensure you are making an informed decision.

Next Steps

Choosing the right equity release plan can be complex, but getting expert advice can make it easier. By understanding your specific needs and circumstances, an adviser can help you find the best plan that provides access to your home’s equity.

Interested in the benefits of equity release? Speak to a knowledgeable adviser who can guide you through the process and help you make the right choice.

Get Expert Equity Release Plan Advice Now

Frequently Asked Questions

The amount you can get depends on your age, the value of your home, and the type of equity release plan you choose. Generally, older homeowners can release more equity. An adviser can help you determine the maximum amount available to you.

Why Use Us?

Unbiased & Impartial - We search every equity release lender in the UK. We're an independent website with no affiliation to any equity release lender and therefore we don't promote any "special offers" from specific lenders.

Whole of Market - We search the whole of the equity release market including exclusive quotes and rates sometimes available to equity release brokers.

How It Works

  1. Complete our simple form
  2. Our partner, Unbiased, will connect you with one equity release adviser perfectly suited to meet your needs. Expect an email with their details.
  3. You'll receive a no-obligation equity release quote
  4. Your assigned broker will then contact you to schedule your first meeting.

What People Say

"He has kept me posted every step of the way and explained everything fully. There were no hidden costs. I would definitely recommend and will not hesitate to use them in the future"


"Very satisfied with the service received ! The advisor was excellent handling our equity release and was very helpful with all questions we had and changing our term twice! Thanks again!"

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*Example rate shown is from Hodge with a rate of 6.05% (12/09/2023). The rates shown are for illustrative purposes only, they should not be taken as any form of advice or recommendation. Actual mortgage quotes are based on individual circumstances.

  1. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.