EQUITY RELEASE

Access the Value in Your Home Without Moving

If you're aged 55 or over and own your home, equity release lets you access a tax-free sum from the value of your property - as a lump sum or in smaller amounts - without having to sell or move out. It's not right for everyone, and getting independent advice is a legal requirement before proceeding. We'll explain every option clearly, including alternatives you should consider first, so you can make the decision that's right for you and your family.

What Is Equity Release?

Equity release is an umbrella term for financial products that allow homeowners aged 55 and over to unlock money tied up in their property. The two main types are lifetime mortgages and home reversion plans. The most common by far is the lifetime mortgage.

Unlike a standard mortgage, equity release typically has no fixed monthly repayment requirement and no end date - the loan is repaid when you pass away or move into long-term care, usually from the sale of the property.

The Two Types of Equity Release

Lifetime Mortgage
The most widely used equity release product. You take out a loan secured against your home while retaining full ownership. You can choose to make no monthly payments (with interest rolling up and added to the loan), pay the interest monthly to keep the balance stable, or make voluntary partial repayments.

Key features under Equity Release Council standards:

Minimum age typically 55; you can usually borrow 20–60% of your property's value depending on age

Interest rates are fixed for life, or variable with a guaranteed cap.

You have the right to remain in your property for life, or until you need long-term care.

No negative equity guarantee - your estate will never owe more than the property sells for.

You can move to another property in future, subject to lender approval of the new property.

Home Reversion Plan
You sell a percentage of your property to a provider in exchange for a lump sum or regular payments, while retaining the right to live there rent-free for life. When the property is eventually sold, the provider receives their agreed percentage of the sale proceeds. Home reversion plans are less commonly used than lifetime mortgages.

What It Can Be Used For

People use equity release for a wide range of purposes. There's no restriction on how you use the money:

Supplementing retirement income

Home improvements or adaptations

Helping children or grandchildren onto the property ladder

Paying off an existing interest-only mortgage where the repayment vehicle has underperformed

Funding care at home

Holidays, travel or larger purchases

Paying off outstanding debts

Scotland-Specific Considerations

Equity release is available across the whole of the UK, including Scotland. There is one important difference to be aware of: in Scotland, the property valuation must be carried out by an independent chartered surveyor, whose report is considered authoritative in determining the property's market value and how much you can release.

The number of equity release providers operating in Scotland is somewhat smaller than in England and Wales, but all major providers - including the household names - offer their products to Scottish homeowners. We'll identify which providers are right for your property, location and personal circumstances.

Professional advice is a legal requirement before proceeding with equity release anywhere in the UK. We're here to provide exactly that - clearly, without pressure, and covering all your options.

What to Think About Before Deciding

Equity release reduces the value of your estate and the inheritance you can leave. The interest on a lifetime mortgage compounds over time - this can significantly increase the total amount owed if no repayments are made. It can also affect entitlement to means-tested state benefits.

This doesn't mean equity release is the wrong choice - for many people it's the most practical way to achieve the retirement they want. But it does mean the decision deserves careful thought and proper advice.

We'll always walk you through the full picture, including what equity release will cost over time under different scenarios, before we recommend anything.

Alternatives Worth Considering First

Before deciding on equity release, it's worth exploring whether any of these alternatives are a better fit:

Retirement Interest-Only (RIO) Mortgage - You pay only the interest each month with no end date. The capital is repaid on death or entry into care. Unlike a lifetime mortgage, your balance doesn't grow over time. Available to homeowners typically aged 55 and over.

Remortgaging to Release Equity - If you're under 65 and still working, remortgaging to a new residential deal may release cash at a lower overall cost than equity release. We'll compare the numbers.

Downsizing - Selling and buying a smaller property can release significant capital without any ongoing financial product. It's worth considering honestly before committing to equity release.

Second Charge Loan - A loan secured against your property that sits alongside your existing mortgage. Depending on your income and circumstances, this can provide funds at a lower overall cost than equity release.

We'll discuss all of these with you. Our job is to find the right answer for your situation - not to recommend the most complex product.

FAQs

What happens to my home when I die or move into care?
Your property is sold, and the proceeds are used to repay the equity release loan - including any rolled-up interest. Any money remaining after repayment goes to your estate. The no negative equity guarantee means your estate will never owe more than the sale price, even if the loan has grown to exceed the property's value.

Can I still leave an inheritance?
Yes. Some lifetime mortgages allow you to ring-fence a percentage of your property's value as a guaranteed inheritance. This limits the amount you can borrow, but gives your family certainty. We'll explain the options available.

Will equity release affect my benefits?
Potentially. If you receive means-tested state benefits - Pension Credit, for example - a lump sum payment from equity release may affect your entitlement. We'll flag this during your consultation and recommend you seek benefits advice alongside our mortgage advice.

Can I move house if I have equity release?
Yes, in most cases. Your lifetime mortgage can be transferred to a new property, subject to the new property being acceptable to your provider as security. If the new property is of lower value, you may need to repay part of the loan.

What does it cost to get advice?
Your initial consultation is completely free with no obligation. Our typical fee of £495 is only payable on mortgage application - not before. We also receive commission from the lender. Full details will be provided in our Terms of Business before anything is agreed.

Is equity release right for me?
That's exactly what our initial call is for. We'll look at your age, property value, financial situation, what you want to achieve, and your family's circumstances - and give you a straight answer on whether equity release is likely to be the right route, and which product type to explore.

Not sure if equity release is right for you? Start with a free conversation - we'll give you an honest answer.