Equity Release
Your property might be holding a large sum of equity that could help you with your financial needs.
Does the thought of downsizing terrify you?
Instead, use our FREE calculator and discover an estimate of your available equity.
What's equity release?
Equity release allows homeowners to access the value built up in their property without the need to sell.
It can provide a lump sum or the option of a drawdown facility.
It’s important to consider the impact on estate value and eligibility for means-tested benefits.
Equity Release & Retirement Mortgages
Are you a retiree struggling to secure a loan?
You’re not alone.
Obtaining a loan in retirement is notoriously difficult. But don’t despair!
Equity release offers a variety of solutions that can be tailored to your needs and help you achieve your financial goals.
Learn more about the options available to you.
An Introduction to Equity Release
Equity Release: Unlock Your Home’s Value at 65+
With over a decade of experience, Katherine has become a beacon of trust and transparency, adeptly guiding homeowners through the complexities of unlocking home equity, retirement income planning, and debt management in retirement. Her insightful articles shed light on the nuances of financial liberation in later years, making her an indispensable voice in the landscape of secure financial retirement solutions.
With a keen eye for detail and a deep understanding of financial regulations, Paul ensures that equity release schemes adhere to the highest levels of legal and ethical compliance. His expertise not only fortifies the integrity of financial institutions but also safeguards consumer interests, making him a trusted figure in the industry.
Paul's commitment to excellence and transparency has been instrumental in fostering consumer confidence and industry credibility.
With a keen eye for detail and a deep understanding of financial regulations, Paul ensures that equity release schemes adhere to the highest levels of legal and ethical compliance. His expertise not only fortifies the integrity of financial institutions but also safeguards consumer interests, making him a trusted figure in the industry.
Paul's commitment to excellence and transparency has been instrumental in fostering consumer confidence and industry credibility.
Bert Hofhuis
Bert's leadership and foresight have not only propelled his company to the forefront but also significantly contributed to consumer education. His commitment to ethical practices and client-centric services has earned him widespread respect and trust.
Bert's entrepreneurial spirit and dedication to enhancing retirement financial planning continue to inspire and impact the industry positively.
If you’re looking for the best equity release quote in a short space of time so that you can change up your retirement, look no further!
In This Article, You Will Discover:
Our equity release quote comparison tool is a market leader and will save you time and money while bringing you the best equity release offers.
Banking Times’s experts have taken the work out of finding the best equity release deals and providers for you. By using our system, you can get your initial advice for free.
Go ahead and try our quote calculator now!
What Is Equity Release and How Does It Work in the UK?
Equity release in the United Kingdom is a financial scheme that allows homeowners aged 55 and over to unlock the equity tied up in their home without having to sell it. The money can be taken as a lump sum or in several smaller amounts – or as a combination of both.
There are two main types of equity release plans in the UK, namely lifetime mortgages and home reversion plans. A lifetime mortgage involves taking out a loan secured on your home, whereas, in a home reversion plan, you sell part or all of your home in return for a lump sum or regular income and the right to continue living there.
Who Releases Equity?
Those who release equity are normally retirees and those aged over 55.
To qualify for equity release, you need to meet the following criteria:
- The youngest applicant has to be aged over 55.
- There’s no more than 2 people on your property title deed.
- Your home has to be worth over £70,000.
- Your home has to be of standard construction.
- You must own your home.
- Your house must be situated in the UK.
- You must have a minimal mortgage or no mortgage on your house.
You can use the tax-free cash2 you get from equity release for anything you wish, such as funding home-based care3, a dream vacation, or home renovations.
Can You Get a Free Quote to Release Equity?
Why Compare Equity Release Providers?
You should compare equity release providers because, although all lenders offer equity release products, each provider will offer different interest rates and flexible benefits.
By comparing providers, you can find the best deal for you.
What Do I Need to Get a Quote?
To get a quote, you need a few simple details:
- The age of the youngest homeowner.
- Your property’s market value.
- Your postal code to confirm your property location.
Once you enter this information into our easy to use quote comparison system, you’ll get results in a few seconds.
Where to Get Equity Release Quotes
You can start the process to get an equity release right here by using our equity release quote tool.
You’ll get an overview of top equity release providers.
Through our system, you can access exclusive deals from market-leading providers.
Common Questions
What Is Equity Release and How Does It Work?
Equity release is a financial solution designed for homeowners aged 55 and above in the UK. It allows you to unlock the value tied up in your property without having to move. The amount released can be received as a lump sum or in smaller instalments, which can be used as you wish.
The two main types of equity release are lifetime mortgages and home reversion plans. Lifetime mortgages allow you to take out a loan secured on your home, while home reversion involves selling a portion or the entirety of your property.
Is Equity Release a Good Idea for Retirement Planning?
Equity release can serve as a useful tool in retirement planning, providing a source of funds that can be used to supplement pension income, pay off existing debts or assist with day-to-day expenses. It allows you to utilise the assets you’ve accumulated over your lifetime without having to sell your home.
However, it’s crucial to consider the implications, such as potential reduction in your estate’s value and the impact on benefits eligibility. It is always a good idea to discuss your individual circumstances with a qualified adviser before proceeding.
What Are the Risks Involved in Equity Release?
Like all financial products, equity release comes with its share of risks. One common concern is the erosion of inheritance; as the amount you owe can increase over time, this could significantly reduce the value of your estate.
Another risk is negative equity, where the debt can exceed the value of your home.
However, many providers now offer a “no negative equity guarantee,” promising that you will never owe more than the value of your property.
How Can I Calculate the Amount I Can Release Through Equity Release?
The amount you can release through equity release depends on your age, the value of your property, and your health. Typically, the older you are and the higher the value of your property, the more money you can release.
There exist online calculators that can provide you with an estimate of how much you could release.
However, for a more precise calculation, it’s recommended to seek advice from an equity release specialist.
Are There Any Alternatives to Equity Release?
Yes, there are alternatives to equity release. Downsizing is one such option, where you could sell your existing property and move to a smaller, less expensive one, releasing money in the process.
Another option could be to use savings or other investments. Alternatively, you could consider taking in a lodger or rent out a room to generate additional income.
It’s essential to explore all options and seek advice before deciding.
Is Equity Release Regulated?
Yes, equity release is regulated by the Financial Conduct Authority and guided by the Equity Release Council to ensure client safety.
Can I Still Take Out an Equity Release Plan if I Have an Outstanding Mortgage?
Yes, you can still take out an equity release plan if you have an outstanding mortgage.
Equity release must repay any outstanding mortgage before additional funds can be used for any other objectives.
Will I Still Own My House With Equity Release?
Yes, you will still own your house if you choose a lifetime mortgage.
However, with a home reversion scheme, you sell a portion (or all) of your property.
How Will Releasing Equity Affect My Family?
Releasing equity can affect your family because of the reduced inheritance when your property is sold.
Can I Still Leave an Inheritance with Equity Release?
Yes, you can still leave an inheritance with equity release.
There are plans that offer inheritance protection, allowing some property wealth to be set aside for your heirs.
Alternatively, you can leave an early inheritance for your heirs by gifting them with the funds you unlock.
Will My Entitlement to Means-Tested Benefits Be Affected?
Your entitlement to means-tested benefits can be affected by equity release.
This is something we recommend you discuss with your financial advisor.
Will I Lose My Home?
No, you won’t lose your home.
Equity release allows you to remain in your property, rent-free until you pass away or move to long-term care.
Can I Change My Equity Release Plan?
Yes, you can change your equity release plan to find a more suitable deal for you.
Can I Move Home With Equity Release?
Yes, you can move home with equity release if your provider approves.
Can You Pay Back Equity Release Early?
Yes, you can pay back equity release early.
However, an early repayment charge may be applicable.
The charge differs per provider and can be up to 5% of the initial loan amount.
What Happens to My Equity Release Plan if I Enter Long-Term Care?
When you enter long-term care, your equity release plan will cease.
Your property will be sold and the proceeds will be used to settle the loan amount.
The ‘no negative equity guarantee’ ensures that neither you or your beneficiaries will be liable for any surplus debt.
You or your beneficiaries will receive any remaining proceeds from the sale once the loan has been settled.
In Conclusion
All the factors mentioned above will be considered when a provider puts together a quote for you.
Before you talk to your adviser, make sure you’ve used our equity release quote comparison tool to know what to expect.