How does Equity Release work?

What is Equity Release?

Equity release is a financial solution designed for homeowners aged 55 and over, allowing them to access the cash tied up in their property without needing to sell it. This option is particularly beneficial for those looking to supplement their retirement income or fund significant expenses, such as home improvements or healthcare costs.

How Does Equity Release Work?

When you opt for equity release, you essentially convert a portion of your home's value into tax-free cash. There are two primary types of equity release:

• Lifetime Mortgages: You borrow against the value of your home while retaining ownership. The loan, plus interest, is repaid when you sell your home or pass away.

• Home Reversion Plans: You sell a share of your home to a provider in exchange for a lump sum or regular payments. You can continue living in the property rent-free until you pass away or move into long-term care.

A Practical Example of Equity Release

Imagine you are a 65-year-old homeowner with a property valued at £300,000. You decide to release £50,000 through a lifetime mortgage to fund your dream holiday and make some much-needed renovations. By doing this, you can enjoy your retirement more fully without the burden of monthly repayments, as the loan will be repaid when the house is sold.

Why Consider Equity Release?

Equity release can provide financial freedom and flexibility during retirement. However, it's essential to understand the implications, such as how it may affect your inheritance and means-tested benefits.

For more information on eligibility and how equity release could work for you, check out our FAQs on

Am I eligible for equity release? and What are the pros and cons of equity release?

If you're considering equity release and want personalized advice or to find out what rates you can get, don't hesitate to contact us today! We’re here to help you navigate your options and make informed decisions.