What is Equity Release?

Equity release is a means of using the value of your home to receive either a lump sum of cash, or regular monthly installments. Basically, you can release cash from your property, while continuing to live in your home.

In all instances, age is the primary factor in determining the percentage of the value of your home that can be released. A person of an older age can release a higher percentage of the value of their home than a person of a younger age, because they are simply not expected to live as long.

The product you choose will depend on your circumstances; no one loan is perfect for everyone. The amount of equity required, how much you can unlock, your age, life expectancy and health, attitude towards risk, the amount of inheritance you want to leave, and whether you require a lump sum or regular payments, are all important points to consider.

The interest rates of equity release mortgages are rather high compared to standard mortgages, so think carefully about if you really need to follow this route.