Pros and cons of equity release

If you’re wondering what the advantages and disadvantages of equity release are, allow us to help. Here at The Equity Release Experts, we pride ourselves on our honest, friendly and reliable advice. Equity release, much like all other financial products, isn’t a one-size-fits-all solution, and that’s why we’re always on hand to help you fully understand whether it’s the most suitable option for you.

As with any big financial decision, you should always seek expert advice before going ahead. During your appointment, our expert equity release advisers will review your circumstances to let you know if equity release is the right option for you. In the meantime, you’ll find some of the pros and cons of equity release below.

Lifetime mortgage benefits

Your specialist equity release adviser will explain:

  • You can unlock cash from your home, tax-free, to help meet your needs in later life
  • You’ll always retain full ownership of your home and can stay in it for as long as you wish
  • You can choose to make reduced or no monthly repayments to suit your circumstances
  • You’ll never owe more than your home’s worth
  • You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges

Potential drawbacks

Your equity release adviser will also outline the following important things to think about:

  • A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly
  • Equity release will reduce your financial options in the future
  • Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
  • Equity release may leave you with limited or no property equity remaining
  • A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply

Come to the experts to discuss the pros and cons of equity release

Whether you’d like to discuss the pros and cons of releasing equity from your home, or want to discover the range of equity release plans that could help you boost your finances in later life, call us on 0800 188 4812 or fill in our callback form to speak to one of our dedicated, fully qualified equity release advisers. Lines are open Monday-Friday 9am-5.30pm.


Things to consider with equity release

If you are considering unlocking cash from your home, we recommend that you make sure equity release is right for you

  • The loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care
  • Unless you decide to go ahead with a plan, our service is completely free of charge, as our fixed equity release advice fee of £1,799 is only payable on completion of a plan