Equity release allows you to release cash from your property without the upheaval or expense of moving home.
To be eligible for an equity release plan, you need to be a UK homeowner aged 55-95. The money you release can be spent in any way you like and there are typically no monthly repayments to make. There’s also no need to worry about the longer term: you can stay in your home for life, or until you decide you want to move or need to go into long term care.
There are the two main types of equity release plan:
Lifetime mortgage - you take out a loan secured on your property, and receive that amount as a tax-free lump sum. You do not usually make monthly repayments, instead, the interest is accrued with the loan plus interest being repaid after your death, or if you both move into long term care when the property is sold.
Home reversion plan - you sell all or part of your home in return for a tax-free lump sum and a guaranteed lifetime lease, with no monthly repayments to meet. After your death the house is sold, so the lender gets back its percentage share. (We do not provide home reversion plans at Mortgage Advice UK)
There are many equity release plans on the market, so it’s vitally important to seek expert advice. Our qualified mortgage advisors will compare the whole market to find the right deal for your circumstances.
NOTE: A lifetime mortgage is a long term commitment which could accumilate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.