Call us on 0800 464 3677

Why choose equity release

For more and more over 55s, their house is no longer simply their home. Thanks to the flexibility of current equity release plans, it’s a way to help fund their retirement.

People opt for equity release for many reasons. For some, it’s a simple matter of using the tax-free cash to clear existing debts or an existing mortgage in order to free up their monthly income. For others, it’s a chance to fund the things they’ve always dreamt of doing and now have the time to enjoy.
Equity release could enable you to provide financial support to your family too, contributing to their education costs or helping them to get a foot on the housing ladder.
Home improvements are also right up there on the list of reasons why people choose to access money from their home.
Selling and moving to a smaller property is one option to access the wealth in your home. However, a lifetime mortgage, a type of equity release, allows you to unlock some of the tax-free cash from your home while staying put.
Typically with a lifetime mortgage, there are no monthly repayments to make as the loan, plus compound interest is usually repaid through the sale of the property when the last remaining applicant passes away or moves into long term care.
Lifetime mortgaes now come with different features and benefits, and those taking out a lifetime mortgage can find a tailored plan suited to their circumstances.

Could you be eligible?

If you’re looking into equity release, then you'll already know what you would spend the tax-free cash on. So the next step is to find out whether you could be eligible and how much you could release. By using our free online equity release calculator, you can find out in an instant.

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.