Equity Release is More Popular than Ever - That’s Great News for People aged 55 and older
> Nearly 80,000 UK residents used Equity Release in 20211. Check your eligibility nowLast updated: June 2023
Nearly 80,000 UK residents used Equity Release to take cash (equity) out of their home, tax free in 2021. This represents an increase of 24% compared to 2020 in Equity plans1.
An equity release plan allows homeowners aged 55-95 to access some of the cash (tax free) locked in the value of their home. Usually taken as a lifetime mortgage which is a loan secured against your home. It means that the money your home has earned you doesn’t have to stay tied up in the bricks and mortar.
Equity Release Calculator
Am I Eligible?
If you are considering releasing a tax free cash lump sum then you’ve probably got an idea in mind of how you want to spend it. Some of the most popular reasons for releasing cash include:
- Making home and garden improvements
- Gifting money to family
- Going on holiday
- Replacing the car
- Easing financial worries
How Much Can I Release?
The amount you can release depends on your age, how much your house is worth and your health and lifestyle. Some providers take your health and lifestyle choices into consideration which could enable you to release more money.
Is It Safe?
Equity release is regulated by the Financial Conduct Authority (FCA), providing protection and security. As an extra safeguard, the Brokers we work with are members of the Equity Release Council (ERC) and recommend ERC approved plans. As as result:
- You will never owe more than the value of your home once it is sold upon death or after moving into long term care due to their ‘no negative equity’ guarantee
- You have the freedom to move to another property with no early repayment charges (subject to provider criteria)
- You have the right to remain in your home for as long as you choose
Things to Consider:
Equity release reduces your estate’s value and may affect any means-tested benefits you’re eligible for. With a lifetime mortgage, which is a loan secured against your home, you will still own your home.