To qualify for equity release, you have to be aged 55 or over, own your own home and your property must be worth at least £70,000.
There’s no affordability check like there would be with a standard mortgage as there are typically no monthly repayments for you to make.
You can see how much money you could release from your home by using our free calculator.
What about my existing mortgage?When you take out equity release, all the cash you unlock is tax-free. But before you can do anything with it, you must first pay off any existing mortgage or loans secured against your property. You can use the proceeds of the money released to cover this cost, and how much you currently owe will stipulate what portion of your release you are left with.
If you can’t release enough to cover the costs of an existing mortgage or other loans secured against your home, you will have to make up the difference using alternative methods before being eligible for equity release.
Things to considerEquity release will reduce the value of your estate, and could also affect your entitlement to means-tested benefits.
The most popular type of equity release is a lifetime mortgage, which is a loan secured against your home.
If you’re thinking about releasing equity from your home, we recommend reading ‘is it right for you?’ carefully before going ahead.