An equity release mortgage can provide a range of benefits for those aged over 55 who are looking to access the value tied up in their property. These mortgages allow homeowners to release equity from their home without having to sell it or move out. The funds can be used to supplement income, make home improvements, pay for healthcare, or any other financial needs.

Additionally, an equity release mortgage can be a valuable tool for those who want to provide a gift for their loved ones or pay off debts. One of the key benefits is that the mortgage is repaid when the homeowner dies or moves into long-term care, which means that the homeowner can enjoy the benefits of the released equity without having to make monthly repayments.

Overall, an equity release mortgage can provide a flexible and practical solution for those who are asset-rich but cash-poor in retirement.


How does equity release mortgage work?

An equity release mortgage is a financial product that allows homeowners, typically those aged 55 and older, to unlock the value tied up in their property. Instead of selling the property, individuals can borrow against its equity, either through a lump sum or regular payments. The loan is repaid, along with accumulated interest, when the homeowner sells the property, moves into long-term care, or passes away.

Is it better to remortgage or release equity?

Deciding between remortgaging and releasing equity depends on individual circumstances. Remortgaging involves replacing the current mortgage with a new one, potentially accessing a lower interest rate. Equity release, on the other hand, allows access to cash without monthly repayments. The choice hinges on factors like financial goals, age, health, and the desire for ongoing repayments.

How to release equity from mortgage?

To release equity from a mortgage, one can consider:

Research Options: Explore equity release products, such as lifetime mortgages or home reversion plans.

Seek Professional Advice: Consult a financial advisor experienced in equity release for personalised guidance.

Compare Offers: Evaluate different equity release providers and their terms.

Understand Implications: Be aware of the impact on inheritance, benefits, and future property value.

Legal Process: Engage solicitors for legal processes involved in releasing equity.

What is the difference between equity release and a lifetime mortgage?

The main difference lies in ownership. Equity release encompasses both lifetime mortgages and home reversion plans. A lifetime mortgage allows homeowners to borrow against the property’s value while retaining ownership. Home reversion involves selling a share of the property, and forfeiting full ownership. Both options enable accessing equity without the need for immediate repayments, making them suitable for older homeowners.