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What is Second Home Equity Release?

Second home equity release allows homeowners to unlock the value of their second property without having to sell it. This type of equity release can provide funds for various financial needs, including purchasing another property, funding renovations, or supporting your retirement lifestyle. Equity release products are regulated by the Financial Conduct Authority (FCA) in the UK, ensuring consumer protection and oversight.

Key Features and Benefits

  • Access to Funds: Release a lump sum or regular income from your second home’s equity.
  • No Need to Sell: Continue owning and enjoying your second home while accessing its value.
  • Flexible Options: Choose from different types of equity release schemes tailored for second homes.
  • 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 property.
  • 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 on a second home is typically available to homeowners aged 55 and over with a qualifying second property. The amount you can release depends on factors such as your age, the value of your second home, and the type of equity release scheme you choose. Ensure your property meets the lender's criteria, which often include the type and location of the property.

Costs

Understanding the costs associated with second home 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 second 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 Rental Income

Consider how releasing equity might affect any rental income from your second home. While you can continue to earn rental income, the interest payments or loan repayments might affect your overall financial planning. It’s important to discuss this with an adviser to fully understand the implications.

Advice

Seeking professional advice is essential when considering second home 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 for a second home 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 second home’s equity.

Interested in finding the best equity release plan for your second home? Speak to a knowledgeable adviser who can guide you through the process and help you make the right choice.

Get Expert Second Home Equity Release Advice Now

Frequently Asked Questions

Equity release on a second home allows you to unlock the value of your property without selling it. The two main types are lifetime mortgages and home reversion plans. With a lifetime mortgage, you borrow against your property’s value, and the loan plus interest is repaid when you die or move into long-term care. With a home reversion plan, you sell part or all of your property in exchange for a lump sum or regular payments but continue to use the property.

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.