Why should you choose equity release?

Equity release could help you unlock your finances in later life. We'll explain the benefits, drawbacks, and costs of equity release to help you make an informed decision. 

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Why equity release?

Equity release plans offer a way to unlock some of the tax-free funds that may be tied up in your property. Whether you want to take this money as a one off lump sum or in instalments, after an initial release, will help to determine which plan you choose.

There are many reasons why you may decide to release equity from your home:

  • It could be to pay off your existing mortgage or any existing debts to free up money each month.

  • You might have your eye on home improvements or a holiday, but require some extra funds before putting plans in place.

  • Another great benefit of equity release is that you’ll get to remain in your own home.

  • There will be no need to downsize; you will be able to retire and live comfortably in the house without the hassle of packing and moving.

Equity release is a complex product and may not be right for everybody. By speaking to one of our expert advisers we will give you all the information you need to make an informed decision, and if we don't believe that equity release is right for you, we'll tell you.

What are the benefits and drawbacks of equity release?

Lifetime mortgage benefits

  • 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

  • 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

Your other options

Before deciding on equity release, it's important you're aware of some of your other later life finance options, which may include:

Retirement interest-only mortgage
Retirement repayment mortgage
Or see if equity release is right for you

Equity release costs

Knowing the costs associated with equity release and how to help manage them is important.

Compound interest explained
Lump sum vs drawdown lifetime mortgage

Free online calculator

Get a free, no obligation quote using our calculator to see how much you could release from your home
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Your free equity release guide gives you all the facts you need to make the decision that’s right for you
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Is equity release a good idea?

As with anything, there are some drawbacks with equity release. We understand that equity release isn’t for everyone, and we’ll never say it’s the right option for you unless we’re certain.

When you take advice from one of our expert equity release advisers, it’s vital that you explore the different equity release plans available to decide which is most suitable for you and your circumstances.

You can discuss factors such as interest rates and the roll up of interest, known as compound interest, as well as set-up fees and other charges you may incur.

We pride ourselves on giving you all the information you need in a completely transparent way. This means there will not be any surprises down the line.

Come to the experts for your equity release needs

If you’re ready to find out more about equity release, our friendly and experienced team can be reached via our quick contact form or on 0800 188 4812. Lines are open Monday-Friday 9am-5.30pm.

Remember, it is crucial that you get advice before you take out any equity release product. If you want to learn more about equity release before picking up the phone, our guide is free to download and contains further information.

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

  • You should always think carefully before securing a loan against your home to repay existing debt

  • 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