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Home Equity Release
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What is equity release?

Get the facts about equity release from the Mortgage Advice Bureau Later Life advisers.

Find out how much you may be able to release with our equity release calculator
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What is equity release?


An equity release plan allows homeowners aged 55 and over to access some of the tax-free cash locked in the value of their home. 
 
The value of your home, minus any outstanding mortgage and any other loans secured against it, is the equity you have in your property. This equity is often passed on as an inheritance, however, an increasing number of people are tapping into some of this wealth to help boost their retirement finances. 
 
Most people who take out equity release, choose a lifetime mortgage, which is a loan secured against your home. With the flexibility of these plans, you can choose between taking your tax-free cash in one lump sum or have it available to drawdown as and when you need it following an initial, smaller, lump sum release. With a drawdown plan, you only pay interest on the money released. 
 
There are typically no monthly repayments for you to make with a lifetime mortgage, as the loan, plus roll-up interest (also known as compound interest), is repaid when the plan ends. That’s usually when the last remaining applicant either passes away or enters long term residential care. 

Will I still own my own home?


With a lifetime mortgage, you’ll still own your home and can stay in it for as long as you like, subject to your plan’s terms and conditions.
 

Will I ever fall into negative equity?


No. All plans that meet the Equity Release Council’s standards come with the no negative equity guarantee, meaning you’ll never owe more than your home’s worth.

 

Can I move house?


Yes. All plans that meet the Equity Release Council’s standards allow you to transfer your plan to a new home (subject to criteria).

 

Can I still leave an inheritance?


Yes, you can. Some lifetime mortgages guarantee that a set percentage of your home’s value, at the time your plan ends, will form part of your estate for you to pass on to others in your will.

 

Can I take out equity release if I still have a mortgage?


Yes, however, you’ll need to repay the mortgage using the money released. Any leftover funds are yours to enjoy. 

Retirement interest only mortgages

A retirement interest only mortgage (RIO) is a mortgage that allows you to pay off the interest on the amount borrowed. The loan is repaid when the plan comes to an end when you (or the last remaining applicant) either pass away or move into long term residential care. RIOs are typically available to people over the age of 55 who have retired.

Later life residential mortgages

If you thought you were too old for a standard mortgage or can't find a conventional one to meet your needs , we can refer you to our expert mortgage advisers to help. Later life residential mortgages can be used to buy a new property, remortgage an existing one, or release additional funds. It can be on a capital repayment or interest only basis

Because we play by the book we want to tell you 


We understand equity release isn’t for everyone, and we’ll never say it’s the right option for you unless we’re certain. A lifetime mortgage is a loan secured against your property. With a lifetime mortgage there are typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end. Usually, that’s when you, or the last remaining applicant, either passes away or moves into long-term care. With a lifetime mortgage you’ll still retain full ownership of your home.   

 Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits. 

 Mortgage Advice Bureau Later Life equity release advisers will recommend lifetime mortgages from a carefully selected panel of equity release providers. 

Unless you decide to go ahead, our service is completely free of charge, as our fixed advice fee of £1,295 would only be payable on completion of a plan.