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Information on Equity Release

The factors that determine how much you can borrow are:

  • The lender
  • Value of your house
  • Your postcode
  • Your age, loans are based on the youngest person of a couple
  • Your health

As people get older the amount they can borrow increases, some lenders will consider health conditions to increase the amount that can be borrowed, whilst other lenders will use health conditions to reduce the interest rate.

Mortgages can be paid back either interest or interest and capital, just like a conventional mortgage.

The minimum you can expect to borrow in good health at age 55 is (20%) of the house value, the maximum you can borrow is just over half (54%). As a rough guide for each year older, you become the amount you can borrow increases by 1%.

On a house valued at £100,000, this means borrowing of between £20,000 and £54,000

On a house valued at £200,000, this means borrowing of between £40,000 and £108,000

Why do people use equity release? 

  • Just over half pay off existing mortgages
  • Half make home improvements, new kitchen, bathrooms, gardens
  • Almost 4 in 10 pay back credit card debts, bank loans, or university fees
  • 1 in 5 borrows just to cover the shortfall in their pension income
  • 1 in 6 buy cars, holidays or give the money to their children and grandchildren

If you have an Equity Release mortgage and you cannot make payments, the payments are made for you by the lender who just adds the interest to the loan, you will not get repossessed because of the lack of money to make mortgage payments.

Age House Value Average Max
Age House Value Average£102,500 Max£185,000

If you'd like to know more, click here to discuss your options with our team.

Additional Information

  • 82% of people want to grow old in the house they live in
  • Money from Equity release is tax-free
  • Your house remains yours until you decide to sell or move out.
  • You can have money now and leave an inheritance
  • 75% of people will consider using money from property instead of pensions to pay for care
  • Equity release can reduce inheritance tax meaning that you can pass more to your family
  • Property wealth for the over 55’s is more than £365 billion pounds

Disclaimers
 

By submitting this form and based on your requirements you agree to be contacted by an FCA authorised Equity Release advisor.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

The details of financial services and products published on this site are for information purposes only and do not constitute financial advice.

By submitting the enquiry form you agree that the information provided is true and accurate and that Equity Release may send the details of this enquiry to an appropriate broker for the purposes of furthering your enquiry and that the broker may contact you for further information as required. We will not send, sell, loan or lease your data to any other third party except those needed to provide the service you have requested.

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Registered office: 52 Cypress Avenue, Ashford, Kent, TN23 3JP