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What can equity release be used for?

When it comes to unlocking some of the cash from your home it could help fund the practical things you need, as well as the things you want.

Whether you’re looking into equity release to help make your retirement more comfortable or have bigger dreams for your funds, it’s your money and can be used in a range of ways.

Paying off an existing mortgage

When you take out equity release, if you have an existing mortgage or any other debt secured against your home, you must pay this off first, this can be done with the funds you release. Without monthly mortgage repayments, you could free up your retirement income, as well as have some peace of mind for the future.

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Home and garden improvements

You could choose to spend the equity release funds to improve your home or garden. It could be for a personal want – creating more space with a new conservatory or loft conversion, or simply renovating it with a new bathroom or kitchen. Some also choose to renovate their home for a more practical reason – ‘future proofing’ it with walk in showers or stair lifts to ensure they can stay in their homes for longer.

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Paying off existing debt

People could also retire whilst being in debt, and it can often disrupt what should be an enjoyable time in life. Using equity release funds to pay off any existing debt from credit cards to loans can help alleviate the cycle of paying minimum monthly payments and free up your income to spend on the things that matter to you. This is because unless you choose to make them, there are no repayments on a lifetime mortgage until the plan comes to an end. 

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Gifting to loved ones

We’re all living longer and it’s becoming increasingly common to help your loved ones sooner rather than later, providing an inheritance while you are around to see them enjoy it. Equity release can provide a lump sum which can be used as a financial gift to help loved ones fund their education, get onto the property ladder or simply help to ensure their financial security.

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You’ve worked hard all your life and paid into your home, so when retirement approaches, it’s great to know your home could pay you back. Whether that’s paying for the trip you’ve always wanted to go on or simply travelling to see family more, it’s up to you.


How we can help

Equity release isn’t a single-use financial product – many customers use the funds released for more than one reason.

At Mortgage Advice Bureau Later Life, we can help with advice, ensuring that you balance both your short-term and longer term financial needs. We’ll make sure you have all the facts and understand your options, so you can feel confident that any decision you make is the right one for you. Mortgage Advice Bureau Later Life offer one type of equity relase, lifetime mortgages, which is a loan secured against your home.


Find out how much you could release

The first step to find out whether equity release could help you is finding out how much you could release from your home. Use our free equity release calculator for instant results.

The benefits

  • You can unlock cash from your home, tax-free, to help meet your needs in later life
  • You’ll always retain full ownership of your home and can stay in it for as long as you wish
  • You can choose to make reduced or no monthly repayments to suit your circumstances
  • You’ll never owe more than your home’s worth
  • You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges

Potential drawbacks

Your equity release adviser will also outline the following important things to think about:

  • A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly
  • Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
  • Equity release may leave you with limited or no property equity remaining
  • Equity release will reduce your financial options in the future
  • A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply

Your other options

Before deciding on equity release, our advisers will make sure you're aware of some of your other later life finance options such as retirement interest-only or retirement payment mortgages.

See if equity release is right for you

Equity release costs

Knowing the costs associated with equity release and how to help manage them is important.

Compound interest explained 
How much does equity release cost?

Things to consider

Because we play by the book we want to tell you 

  • Mortgage Advice Bureau Later Life offer lifetime mortgage products only from a carefully selected panel of providers.
  • We understand equity release isn’t for everyone, and we’ll never say it’s the right option for you unless we’re certain.
  • As part of our advice process, we'll consider whether retirement interest-only (RIOs) and other mortgages may be suitable and can arrange advice on these if appropriate. Advice fee will vary.
  • 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.
  • You should always think carefully before securing a loan against your home to repay existing debt.
  • The loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care.