7 Essential Steps When Considering Equity Release

Wondering whether equity release could be suitable for your needs? Here are some key steps to take when trying to decide whether it’s the right choice for you.


1. Do independent research

Your first step should be to make sure you understand exactly what equity release is and how it works. This site is full of information, with topics ranging from an explanation of what equity release actually is, to a comparison of the different types of equity release plans available. We also recommend that everybody interested in equity release reads ‘Is it right for you?’ carefully; this page explains the details of equity release in much more depth.


2. Consider what you need funds for

Equity release is designed to be used when you have a clear financial need, so you should think carefully about how you actually intend to spend the cash you could release. Popular reasons include holidays, home improvements and gifts to family members – these are all things that can be supported by releasing cash from your home.


3. Discuss it with your friends and family

Equity release could affect your family members, so it’s a good idea to get their input while you’re still in the early stages. If you decide to have an appointment with an equity release adviser then you’ll also be able to invite them to attend with you.


4. Think about the alternatives

If you have a number of different options available to you then it’s worth considering all of them before settling on equity release. This might include looking into
• Downsizing
• Using savings
• Asking relatives for financial help


5. Speak with an expert adviser

An expert equity release adviser will be able to answer any questions that you have about equity release and discuss it with you on a more personal level. This is because they’ll take into account your circumstances, and make a recommendation based on your unique situation.


6. Look for features that suit your needs

When you speak to your equity release adviser, make sure you take the time to discuss the different plan features that are available. This includes the ability to make partial repayments or protect a percentage of your home’s future value for inheritance purposes. So, if there are particular things that are important to you, there may well be features to help tailor a plan to your needs.


7. Take your time

Financial decisions aren’t things that you should rush into! After you’ve met with an adviser and heard what equity release has to offer, there’s nothing wrong with taking a little bit of time to mull it over before making a final choice.



Important facts about equity release

When you’re considering equity release, you should also keep the following facts in mind. Equity release will reduce the value of your estate, and may also affect your entitlement to means tested benefits. The most popular type of equity release, a lifetime mortgage, is a loan secured against your home.

We recommend that anybody considering equity release reads through ‘is it right for you?’ carefully.

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