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Equity Release Icon

A guide to equity release

Equity release is a way to unlock cash tied-up in your property, tax-free while remaining in your own home. It is for property owners aged at least 55 and the most popular form of equity release is a lifetime mortgage. A less common form of equity release is a Home Reversion Plan. In this guide we will focus on lifetime mortgages only.

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At a glance

  • Equity release is unlocking cash tied up in the value of your home
  • Eligibility criteria - You must be aged over 55, live in the UK and have a property worth over £70,000
  • Moneyfactscompare's preferred equity release adviser is MAB Later Life - Call them today on 0800 178 7901 or calculate how much you could release

What is a lifetime mortgage?

A lifetime mortgage is a type of equity release. You borrow a set amount of money and use your property as security. Unlike a standard mortgage, there is no need to make monthly payments towards the loan as you can choose to let the interest roll up over time. This means the interest is added to your original loan and to any interest already accrued and this means your debt will increase over time. Some lifetime mortgages will now allow you to make monthly payments and pay back some or all of the interest. Other plans permit penalty free partial repayments usually up to 10% annually.

When you die or go into long term care the loan needs to be repaid including the interest. This is usually done through the sale of the property. Find out more about interest-only lifetime mortgages.

How does equity release work?

The most common form of equity release is a lifetime mortgage. This can usually be accessed from age 55 onwards and can be a way of supplementing your retirement income using the value tied up in your home. Your equity release or lifetime mortgage lender will decide how much you can borrow depending on your age and the property’s value. Some lenders can even take into account your medical history and may be able to lend you higher amounts than are available through standard lifetime mortgages.

The maximum amount they can lend to you is dependent on the plan you choose. In addition, the amount available will also depend on the age of the borrower with the highest LTVs available to older borrowers. Interest rates on lifetime mortgages are usually higher than a standard mortgage. The rate must be fixed or if it is a variable rate there must be a cap or upper limit for the life of the loan. If you want the option to make monthly repayments to your lifetime mortgage your lender will need to check these are affordable for you. Making monthly repayments will reduce the interest costs incurred on your lifetime mortgage.

Am I eligible for equity release?

You must own a property in the UK to be eligible for equity release. There are also minimum requirements for your age, the value of the property and how much you want to borrow. You will not need to complete an affordability assessment for a lifetime mortgage and equity release lenders will consider those with a poor credit history.

 

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The minimum age for equity release starts at 55

Equity release providers offering lifetime mortgages usually require a minimum age of 55. If you are below the age of 55 and already retired then you could consider a retirement interest only mortgage instead. If you are a couple looking for equity release and only one of you is over the minimum age, you could still get an equity release product, but the younger partner would need to be removed from the deeds.

The location of your home is a factor

The broad rule for your property to be considered for equity release is that it is in the UK. However, like standard mortgages, there are more lenders available for properties located on the mainland versus those lending in Northern Ireland and the Channel Islands and the Isle of Man are often excluded.

The value of your property must be at least £70,000

Your property must be worth at least £70,000 and be in good condition to qualify for equity release although some providers require a higher minimum property value. If it does not meet the standards required, you may be declined for an equity release loan. If your property needs essential repairs then you may need to fix these. When you take a lifetime mortgage you will be responsible for the maintenance, upkeep and insurance of your property.

You have a poor credit history

Equity release lenders will consider a poor credit history, but your acceptance will be dependent on the terms and conditions of the lender and the nature of your credit history issues. If you are bankrupt you may not be accepted for equity release, however there are some lenders who will accept county court judgements (CCJs) and an adverse credit history.

How can equity release be used?

How you choose to spend your cash is up to you. Equity release is often used to

  • supplement a pension
  • buy a new car
  • make home improvements or to refit a home
  • fund holidays
  • gift family members - helping grandchildren get onto the property ladder is a common example

 

Drawdown or lump sum?

You should check if your equity release product allows drawdowns or if it is a lump sum plan. To drawdown funds means you access your cash in stages rather than all in one go. The advantage of this is that for a lifetime mortgage you only drawdown the cash you need reducing your interest cost compared to drawing down a larger sum in one go. Some equity release providers may set a minimum amount for each drawdown.

Speak to an expert equity release adviser today

 

Moneyfacts.co.uk's preferred equity release adviser is Mortgage Advice Bureau Later Life

Mortgage Advice Bureau Later Life Logo

Discover how equity release could improve your retirement finances.

Mortgage Advice Bureau Later Life offers plans from a panel of lenders. It only offers plans that meet the Equity Release Council's standards to give you extra protection.

Speak to an equity release specialist.

Call 0800 178 7901 or calculate how much you could release.

Telephone calls may be monitored or recorded to enable us to improve services to you.

Unless you decide to go ahead, the service is completely free of charge, as the fixed advice fee of £1,295 would only be payable on completion of a plan.

Is equity release safe?

Equity release providers are regulated by the Financial Conduct Authority and increasingly many are members of the Equity Release Council. This trade body has a set of regulations designed to make sure consumers are protected when using equity release products from their members.


Some of the safeguards for consumers include the no negative equity guarantee and security of tenure. This means that when borrowers use a lender that is a member of the Equity Release Council they will never owe more than the value of their property when it is sold following their death or moving into long term care. They can also be assured that they can live in their home for as long as they wish. Furthermore, equity release can only be obtained following financial and legal advice and unlike a traditional mortgage it has no risk of repossession (if T's and C's are met).

Pros and cons of equity release

  • Access tax-free cash tied up in your property
  • No risk of repossession if T&Cs are met 
  • You get to stay in your own home
  • Option to take a lump-sum or drawdown funds as needed (lifetime mortgage only)
  • No negative equity guarantee means you will never owe more than the value of your house when this is sold following your death or moving into long term care
  • Interest costs for a lifetime mortgage builds over the years (unless you choose to repay some or all of the monthly interest)
  • Interest rates are usually higher than Retirement Interest Only mortgages
  • Your beneficiaries could see their inheritance eroded through interest costs or through having a smaller share of the property
  • The amount you can borrow is less the younger you are
  • Since the amount you borrow is included as your income or savings, your entitlement to means tested state benefits being reduced or removed.

Is equity release ever a bad idea?

Taking out a lifetime mortgage can be a lifeline for those who may not have a decent pension pot, or who aren't willing or able to downsize into a smaller property. As long as you fully understand the process – including the type of lifetime mortgage you're getting, how interest is charged and how it can impact everything from inheritance tax to state benefits – it could prove to be a viable way to boost your bank balance in retirement.

That said, releasing equity from your home isn't a decision to enter into lightly, which is why you'll need plenty of support to determine if it's the right course of action for your particular needs. You should thoroughly discuss it with your children as it'll affect the amount of inheritance you leave behind, but you'll need to seek suitable equity release advice, with this being a vital part of the process.

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What are the costs of equity release?

A lifetime mortgage equity release product charges interest at rates around 4% up to 7%. While this is higher than a conventional mortgage it is the effect of compound interest over many years that really increases the cost of equity release.


For example, if you borrowed £80,000 at 4% you would accrue £3,200 in interest in year one. At the end of year one this interest is added to your loan, now totalling £83,200 and you would accrue interest on this amount. At the end of year two you would have an additional £3,328 in interest to add to your loan. After seven years you would accrue £25,274 in interest and owe £105,274.


There is good news though, you can cut the costs of equity release by choosing a product that allows you to pay back some or all of your interest. And, the no negative equity guarantee available on lifetime mortgages from lenders that are members of the Equity Release Council, means that once you go into long term care or after you have passed away, neither you or your beneficiaries will have to make up any shortfall should your property be worth less than your total debt.

Other equity release fees

In addition to interest costs you will also have to pay other fees to get an equity release product. These can include:

Valuation fees

Just like a mortgage the equity release lender needs to obtain a valuation of your home. This can range from a quick inspection through to a more detailed assessment. The lender will also want to know how other property nearby has sold and the prices they have obtained.

Arrangement fees

Some lenders may include an arrangement fee for your equity release product. These can range from £500 - £1000. Some lenders offer fee free packages but usually at a higher interest rate.

Advice fees

You need to receive advice from a qualified financial adviser to get equity release. Different brokers charge fees in different ways, this may be a percentage of the loan amount or a fixed fee. 

Solicitor fees

You will need a solicitor to make sure your equity release is managed correctly and any change in ownership is documented correctly.

Early repayment charges

Lifetime mortgages are designed as a long-term arrangement with repayment made on the sale of the borrower’s home when they die or move into long term care. If you decide you no longer want the mortgage and decide to pay it back earlier you could incur an early repayment charge. These can be expensive ranging from 3% up to 25% of what you have borrowed. Some lenders will waive the early repayment charge for those who settle their lifetime mortgage due to moving home. There are no early repayment charges if you die or move into long-term care. Some lenders will allow the lifetime mortgage to be repaid when the first borrower dies if the remaining borrower wishes to move home and redeem the lifetime mortgage.

Why is equity release more expensive?

A lifetime mortgage (the most common type of equity release) is more costly than a traditional mortgage. There are three reasons why a lifetime mortgage is more expensive than a conventional mortgage:

  1. Lenders do not know when they will get their capital back, unlike a conventional mortgage with a set repayment schedule
  2. Lenders are also less likely to receive any cash back for the money lent out as equity release allows borrowers to not make regular or monthly payments at all
  3. The no negative equity guarantee – the lender needs to include a buffer to make sure they are not hit by any potential losses from a reduction in property values

 

The importance of professional advice

Professional financial and legal advice is essential when considering equity release. Receiving advice is a mandatory part of the process but a good adviser will also talk to you about what you are wanting to achieve with the money, the potential alternatives, such as downsizing and any risks and upsides of the alternative products available. In summary your adviser will:

  • Consider if equity release is right for you and suggest alternatives if not
  • Tell you which type of equity release is most suitable for you, for example draw down, interest servicing or the option to make adhoc interest repayments
  • Share with you a personalised illustration showing you the overall cost and fees, what happens if you don’t want equity release anymore, a description of the provider and the product including an interest rate for lifetime mortgages, any additional product features and what you have said you want to release in funds and the type of product you are interested in
  • Identify those providers who offer the product features most important to you, such as avoiding early repayment charges if you wish to pay back your loan, no negative equity guarantees to make sure you never owe more than you borrow when the property is sold following your death or going into long term care and how to protect your beneficiaries inheritance
  • Help your family to understand how equity release works and any impacts it may have on their inheritance
  • Find the best interest rate for your circumstances and credit history

Some financial advisers will use a panel of equity release providers from which they will select the most relevant provider for you and your circumstances. Different advisers may have different providers that they work with. 

Speak to an equity release adviser

Our preferred borrowing advisers, MAB Later Life are equity release and borrowing specialists, and can help ensure that releasing equity from your home is the right decision. 

Does equity release affect tax credits, benefits or pension entitlement?

Equity release may affect your eligibility for tax credits or benefits, this is because many of these benefits are means-tested. Having a certain amount in your savings or additional income can change what you are entitled to. Your financial adviser should be able to help you understand if this will be a risk.

However, your State Pension typically won't be affected, as this is an entitlement for everyone over State Pension age, depending on your National Insurance record.

What happens when I pass away?

What happens to my equity release after I pass away?

If you have taken a lifetime mortgage, then this will need to be repaid when you die (or if you go into long-term care). If you have taken a lifetime mortgage in joint names, then it will be on the death of the second partner when this will need to be repaid. Usually your home will be sold, and the proceeds used to pay back the lifetime mortgage. Any money that is remaining will form part of your estate.
Your beneficiaries will need to contact the lifetime mortgage lender and provide a copy of the death certificate and probate document. The lifetime mortgage lender will then deal with the executors of your estate (or the estate’s administrators if you die without a will) to discuss how the lifetime mortgage will be repaid. There is sometimes the option for beneficiaries to settle the lifetime mortgage debt using other assets and not just by the sale of your home.

Generally, lifetime lenders will want a lifetime mortgage repaid within 12 months of your death.

Can my partner stay in our home after my death?

If you have taken equity release in joint names, then the surviving partner can remain in the home until they pass away or when they need to go into long-term care, the surviving partner could also move or downsize to a new property without having to pay back the lifetime mortgage. The lifetime mortgage lender will need to agree to this and that the new property provides sufficient equity to cover the outstanding lifetime mortgage. If equity release is not taken in joint names and the surviving partner is not on the policy, they will need to repay the mortgage. Generally, lifetime lenders will want a lifetime mortgage repaid within 12 months of your death.

Moneyfacts Star Ratings

For over 30 years, Moneyfacts Star Ratings have been the badge of quality for the retail financial industry. Every year, impartial Product Experts assess the features of financial products to identify the very best available in the market.

When looking at products a number of factors are taken into consideration. These include how many features a product has and whether it has any additional benefits, optional extras or add-ons that make it stand out from the rest of the products on the market.

The Moneyfacts Star Ratings for Equity Release are based on the weighting of specific product features and competitive charges that are likely to be the most relevant to those looking to take out a product.

A considerable number of features will add to the final score, and some of this information includes:

Flexibility

  • Minimum and maximum ages
  • Minimum and maximum LTVs
  • Minimum and maximum advances
  • Lump sum options
  • Drawdown options
  • Regular income facility
  • Interest roll-up options
  • Portability
  • Ability to service debt
  • Partial payments

Features

  • Rate type
  • Interest charging frequency
  • Equity Release Council membership
  • Negative equity guarantees
  • Early repayment charges
  • Valuation/survey fees
  • Cashback
  • Legal fees
  • Downsizing protection

Flexibility

  • Minimum and maximum ages
  • Minimum and maximum LTVs
  • Minimum and maximum advances
  • Lump sum options
  • Drawdown options
  • Regular income facility
  • Interest roll-up options
  • Portability
  • Ability to service debt
  • Partial payments

Features

  • Rate type
  • Interest charging frequency
  • Equity Release Council membership
  • Negative equity guarantees
  • Early repayment charges
  • Valuation/survey fees
  • Cashback
  • Legal fees
  • Downsizing protection

Flexibility

  • Minimum and maximum ages
  • Minimum and maximum LTVs
  • Minimum and maximum advances
  • Lump sum options
  • Drawdown options
  • Regular income facility
  • Interest roll-up options
  • Portability
  • Ability to service debt
  • Partial payments

Features

  • Rate type
  • Interest charging frequency
  • Equity Release Council membership
  • Negative equity guarantees
  • Early repayment charges
  • Valuation/survey fees
  • Cashback
  • Legal fees
  • Downsizing protection

Equity Release Star Ratings 2024

Click the headings below to see the full list of star ratings awarded.

Equity Release – Five Star

Aviva - Lifestyle Flexible Option Lifetime Mortgage
Aviva - Enhanced Lifestyle Flexible Option Lifetime Mortgage
Canada Life - Capital Select Lite
Canada Life - Capital Select Lite (Flexible)
Canada Life - Capital Select Gold
Canada Life - Capital Select Gold (Flexible)
Canada Life - Capital Select Gold Plus
Canada Life - Capital Select Gold Plus (Flexible)
Canada Life - Capital Select Platinum
Canada Life - Capital Select Platinum (Flexible)
Canada Life - Capital Select Super Lite (Flexible)
Canada Life - Lifestyle Select Lite (Flexible)
Canada Life - Lifestyle Select Super Lite (Flexible)
Canada Life - Lifestyle Select Ultra Lite (Flexible)
Just - J2 Drawdown - Interest Payment >0.01% 5% Cashback
Just - J2 Drawdown - Interest Payment >25.01% 5% Cashback
Just - J2.5 Drawdown - Interest Payment >0.01% 5% Cashback
Just - J2.5 Drawdown - Interest Payment >25.01% 5% Cashback
Just - J3 Drawdown - Interest Payment >0.01% 2% Cashback
Just - J3 Drawdown - Interest Payment >25.01% 2% Cashback
Just - J6 Drawdown - Interest Payment >0.01% 2% Cashback
Just - J6 Drawdown - Interest Payment >0.01% 3% Cashback
Just - J6 Drawdown - Interest Payment >25.01% 2% Cashback
Just - J6 Drawdown - Interest Payment >25.01% 3% Cashback
Legal & General Home Finance - Optional Payment Pink Cashback
Legal & General Home Finance - Flexible Pink Cashback
Legal & General Home Finance - Optional Payment Pink
Legal & General Home Finance - Flexible Pink
Legal & General Home Finance - Optional Payment Black
Legal & General Home Finance - Flexible Black
Legal & General Home Finance - Optional Payment Orange
Legal & General Home Finance - Flexible Orange
Legal & General Home Finance - Optional Payment Yellow
Legal & General Home Finance - Flexible Yellow
Legal & General Home Finance - Optional Payment Carbon
Legal & General Home Finance - Flexible Carbon
Legal & General Home Finance - Optional Payment Graphite
Legal & General Home Finance - Flexible Graphite
Legal & General Home Finance - Optional Payment Opal
Legal & General Home Finance - Flexible Opal
Legal & General Home Finance - Optional Payment Green
Legal & General Home Finance - Flexible Green
Legal & General Home Finance - Optional Payment Pearl
Legal & General Home Finance - Premier Optional Payment Black
Legal & General Home Finance - Premier Optional Payment Yellow
LV= - Drawdown Lifestyle Cashback 1
LV= - Drawdown Lifestyle Cashback 2
LV= - Drawdown Lifestyle Cashback 3
LV= - Drawdown Lifestyle Cashback 4
LV= - Drawdown Lifestyle Cashback 5
LV= - Drawdown Lifestyle Cashback 6
LV= - Drawdown Lifestyle Cashback 7
LV= - Drawdown Lifestyle Cashback 8
LV= - Drawdown Lifestyle Cashback 9
LV= - Drawdown Lifestyle Cashback 10
LV= - Drawdown Lifestyle Cashback 11
LV= - Drawdown Lifestyle Cashback 12
LV= - Drawdown Lifestyle 1
LV= - Drawdown Lifestyle 2
LV= - Drawdown Lifestyle 3
LV= - Drawdown Lifestyle 4
LV= - Drawdown Lifestyle 5
LV= - Drawdown Lifestyle 6
LV= - Drawdown Lifestyle 7
LV= - Drawdown Lifestyle 8
LV= - Drawdown Lifestyle 9
LV= - Drawdown Lifestyle 10
LV= - Drawdown Lifestyle 11
LV= - Drawdown Lifestyle 12
LV= - Lifetime Mortgage Drawdown+ Standard 1
LV= - Lifetime Mortgage Drawdown+ Standard 2
LV= - Lifetime Mortgage Drawdown+ Standard 3
LV= - Lifetime Mortgage Drawdown+ Standard 4
LV= - Lifetime Mortgage Drawdown+ Lite
LV= - Lifetime Mortgage Drawdown+ Max
LV= - Lifetime Mortgage Lump Sum+ Standard
LV= - Lump Sum Lifestyle 12
LV= - Lump Sum Lifestyle Cashback 2
LV= - Lump Sum Lifestyle Cashback 3
LV= - Lump Sum Lifestyle Cashback 4
LV= - Lump Sum Lifestyle Cashback 5
LV= - Lump Sum Lifestyle Cashback 6
LV= - Lump Sum Lifestyle Cashback 7
LV= - Lump Sum Lifestyle Cashback 8
LV= - Lump Sum Lifestyle Cashback 9
LV= - Lump Sum Lifestyle Cashback 10
LV= - Lump Sum Lifestyle Cashback 11
LV= - Lump Sum Lifestyle Cashback 12
More 2 Life Ltd. - Capital Choice Drawdown
More 2 Life Ltd. - Capital Choice Lite Drawdown
More 2 Life Ltd. - Capital Choice Super Lite Drawdown 1
More 2 Life Ltd. - Capital Choice Super Lite Drawdown 2
More 2 Life Ltd. - Capital Choice Super Lite Drawdown 3
More 2 Life Ltd. - Capital Choice Super Lite Drawdown 4
More 2 Life Ltd. - Capital Choice Ultra Lite Drawdown 1
More 2 Life Ltd. - Capital Choice Ultra Lite Drawdown 2
More 2 Life Ltd. - Capital Choice Ultra Lite Drawdown 3
Scottish Widows - FR1 Future Release
Scottish Widows - FR2 Future Release
Scottish Widows - FR3 Future Release
Scottish Widows - FR4 Future Release
Scottish Widows - FR5 Future Release
Scottish Widows - FR6 Future Release
Scottish Widows - FR7 Future Release
Scottish Widows - FR8 Future Release
Standard Life Home Finance - Horizon 500 Drawdown
Standard Life Home Finance - Horizon 550 Drawdown
Standard Life Home Finance - Horizon 570 Drawdown

Equity Release – Four Star

Canada Life - Capital Select Super Lite
Canada Life - Capital Select Platinum Plus
Canada Life - Lifestyle Select Lite
Canada Life - Lifestyle Select Super Lite
Canada Life - Lifestyle Select Ultra Lite
Just - J1 Drawdown
Just - J1 Drawdown - Interest Payment >0.01%
Just - J1 Drawdown - Interest Payment >25.01%
Just - J1 Drawdown 5% Cashback
Just - J1 Drawdown - Interest Payment >0.01% 5% Cashback
Just - J1 Drawdown - Interest Payment >25.01% 5% Cashback
Just - J2 Drawdown
Just - J2 Drawdown - Interest Payment >0.01%
Just - J2 Drawdown – Interest Payment >25.01%
Just - J2 Drawdown 5% Cashback
Just - J2 Lump Sum - Interest Payment >0.01% 5% Cashback
Just - J2 Lump Sum - Interest Payment >25.01% 5% Cashback
Just - J2.5 Drawdown
Just - J2.5 Drawdown - Interest Payment >0.01%
Just - J2.5 Drawdown - Interest Payment >25.01%
Just - J2.5 Drawdown 5% Cashback
Just - J2.5 Lump Sum - Interest Payment >0.01% 5% Cashback
Just - J2.5 Lump Sum - Interest Payment >25.01% 5% Cashback
Just - J3 Drawdown
Just - J3 Drawdown - Interest Payment >0.01%
Just - J3 Drawdown - Interest Payment >25.01%
Just - J3 Drawdown 2% Cashback
Just - J3 Lump Sum - Interest Payment >0.01% 2% Cashback
Just - J3 Lump Sum - Interest Payment >25.01% 2% Cashback
Just - J4 Drawdown
Just - J4 Drawdown - Interest Payment >0.01%
Just - J4 Drawdown - Interest Payment >25.01%
Just - J6 Drawdown
Just - J6 Drawdown - Interest Payment >0.01%
Just - J6 Drawdown - Interest Payment >25.01%
Just - J6 Drawdown 2% Cashback
Just - J6 Drawdown 3% Cashback
Just - J6 Lump Sum - Interest Payment >0.01% 2% Cashback
Just - J6 Lump Sum - Interest Payment >25.01% 2% Cashback
Just - J6 Lump Sum - Interest Payment >0.01% 3% Cashback
Just - J6 Lump Sum - Interest Payment >25.01% 3% Cashback
Legal & General Home Finance - Flexible Pearl
Legal & General Home Finance - Premier Optional Payment Carbon
Legal & General Home Finance - Premier Flexible Carbon
Legal & General Home Finance - Premier Optional Payment Graphite
Legal & General Home Finance - Premier Flexible Graphite
Legal & General Home Finance - Premier Optional Payment Opal
Legal & General Home Finance - Premier Flexible Opal
Legal & General Home Finance - Premier Optional Payment Pearl
Legal & General Home Finance - Premier Flexible Pearl
Legal & General Home Finance - Payment Term Yellow
Legal & General Home Finance - Payment Term Orange
Legal & General Home Finance - Premier Flexible Black
Legal & General Home Finance - Premier Flexible Yellow
Legal & General Home Finance - Payment Term Pink
Legal & General Home Finance - Payment Term Black
LV= - Lifetime Mortgage Lump Sum+ Lite
LV= - Lump Sum Lifestyle 1
LV= - Lump Sum Lifestyle 2
LV= - Lump Sum Lifestyle 3
LV= - Lump Sum Lifestyle 4
LV= - Lump Sum Lifestyle 5
LV= - Lump Sum Lifestyle 6
LV= - Lump Sum Lifestyle 7
LV= - Lump Sum Lifestyle 8
LV= - Lump Sum Lifestyle 9
LV= - Lump Sum Lifestyle 10
LV= - Lump Sum Lifestyle 11
LV= - Lump Sum Lifestyle Cashback 1
More 2 Life Ltd. - Tailored Lifetime A3 Drawdown
More 2 Life Ltd. - Tailored Lifetime A3 Drawdown Cashback
More 2 Life Ltd. - Tailored Lifetime C5 Drawdown
More 2 Life Ltd. - Tailored Lifetime C6 Drawdown
More 2 Life Ltd. - Tailored Lifetime C7 Drawdown
More 2 Life Ltd. - Apex Lump Sum Ultra (Series 8)
More 2 Life Ltd. - Apex Lump Sum Plus (Series 8)
More 2 Life Ltd. - Apex Lump Sum Super (Series 8)
More 2 Life Ltd. - Apex Lump Sum Ultra 2 (Series 8)
More 2 Life Ltd. - Apex Lump Sum Ultra 3 (Series 8)
More 2 Life Ltd. - Capital Choice Lump Sum
More 2 Life Ltd. - Capital Choice Lite Lump Sum
More 2 Life Ltd. - Capital Choice Super Lite Lump Sum 1
More 2 Life Ltd. - Capital Choice Super Lite Lump Sum 2
More 2 Life Ltd. - Capital Choice Super Lite Lump Sum 3
More 2 Life Ltd. - Capital Choice Super Lite Lump Sum 4
More 2 Life Ltd. - Capital Choice Ultra Lite Lump Sum 1
More 2 Life Ltd. - Capital Choice Ultra Lite Lump Sum 2
More 2 Life Ltd. - Capital Choice Ultra Lite Lump Sum 3
Scottish Widows - LS1 Lump Sum
Scottish Widows - LS2 Lump Sum
Scottish Widows - LS3 Lump Sum
Scottish Widows - LS4 Lump Sum
Scottish Widows - LS5 Lump Sum
Scottish Widows - LS6 Lump Sum
Scottish Widows - LS7 Lump Sum
Scottish Widows - LS8 Lump Sum
Scottish Widows - LS9 Lump Sum
Standard Life Home Finance - Horizon 240 Drawdown
Standard Life Home Finance - Horizon 260 Drawdown
Standard Life Home Finance - Horizon 280 Drawdown
Standard Life Home Finance - Horizon 300 Drawdown
Standard Life Home Finance - Horizon 350 Drawdown
Standard Life Home Finance - Horizon 400 Drawdown
Standard Life Home Finance - Horizon 450 Drawdown
Standard Life Home Finance - Horizon 500 Lump Sum
Standard Life Home Finance - Horizon 550 Lump Sum
Standard Life Home Finance - Horizon 570 Lump Sum

Alternatives to equity release

Equity release is just one option to help boost your income in retirement. There are plenty of alternatives.

Continue to work part-time

There's nothing to say you have to stop when you reach State Retirement age, and a growing number of people are choosing to stay in the workplace.

Maximise your savings

Are your savings and investments working as hard as they can? You can also compare savings accounts using our charts.

Downsizing

You could consider downsizing your property to a smaller one which should be cheaper than your current one. This effectively will release some equity, but without any borrowing involved.

Annuity income

If you want the assurance of a regular guaranteed income then you should look to find the best, personalised annuity rate.

Are you receiving the benefits you are entitled to?

Make sure you get all the benefits you're entitled to. You've worked hard all your life, so check that you're getting all the state benefits you're entitled to.

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Equity release is a big decision. It's important that you understand the key terms and features before committing. Read on to find out more about the key terms you will come across when researching your equity release options.

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Most Recent Equity Release News

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Equity release market doubles in size over past five years

31st January 2023

Total lending through equity release last year increased by almost 30% compared to 2021.

Total lending through equity release last year increased by almost 30% compared to 2021.

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Moneyfacts.co.uk launches Equity Release service in partnership with Mortgage Advice Bureau Later Life

3rd October 2022

Visitors to Moneyfacts.co.uk that want to know more about equity release can now access the skilled and experienced advisers at Mortgage Advice Bureau Later Life, in an agreement announced by the two companies.

Visitors to Moneyfacts.co.uk that want to know more about equity release can access the skilled and experienced advisers at Mortgage Advice Bureau Later Life.

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Equity release lending continues to rise this year amid inflationary pressures

2nd August 2022

Consumers borrowed £1.6 billion through equity release between April and June this year, according to the latest figures from the Equity Release Council (ERC). This equates to £700 million more than what was borrowed in the first three months of the year.

Consumers borrowed £1.6 billion through equity release between April and June this year, according to the latest figures from the Equity Release Council (ERC).

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Equity release average rate reaches six-year high

4th July 2022

The average lifetime mortgage, otherwise known as an equity release product, now stands at 5.63%, the highest it has been since August 2016. Rising in tandem with these rates are the number of people looking to use some form of equity release. Figures from the Equity Release Council for this year’s first quarter saw customers unlock £1.53 billion of property wealth in total. This was up 14% from the fourth quarter of 2021 – previously the busiest quarter on record.

The average lifetime mortgage, otherwise known as an equity release product, now stands at 5.63%, the highest it has been since August 2016.

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UK house prices reach record high

16th February 2022

Bad news for potential buyers as the average house price rises rose by £27,000 last year. The latest UK House Price Index recorded average house prices up 10.8% in the year to December 2021. According to data from the Land Registry, it is the biggest gain in a calendar year since 2002.

Bad news for potential buyers as the average house price rises rose by £27,000 last year.

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Equity release market is on the rise

27th January 2022

The equity release market saw a return to growth in 2021. Record amounts of property wealth were accessed by customers, according to industry body the Equity Release Council, which says the market rose by 24.8% last year, to a total of £4.8 billion.

The equity release market saw a return to growth in 2021.

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How to help your grandchildren save for a house deposit

22nd July 2021

It has become common for aspiring homeowners to turn to the bank of mum and dad to realise their dream of owning their first home

It has become common for aspiring homeowners to turn to the bank of mum and dad to realise their dream of owning their first home

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Equity release or pension drawdown – which option is best for you?

18th February 2021

The pandemic has resulted in many households facing financial struggles over the past 12 months and older homeowners may be considering tapping into their pension pot early or releasing equity from their property to see them, or help loved ones, through the current economic uncertainty

The pandemic has resulted in many households facing financial struggles over the past 12 months

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How to pay off an interest-only mortgage

24th November 2020

UK Finance predicted that the number of interest-only mortgages set to mature during 2020 would be 54,000

UK Finance predicted that the number of interest-only mortgages set to mature during 2020 would be 54,000

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An interest-only mortgage could help ease financial pressure during pandemic

6th July 2020

Mortgage borrowers financially struggling due to the Coronavirus pandemic and considering switching to an interest-only mortgage will find that the majority of deals offer an interest-only repayment option

Mortgage borrowers switching to an interest-only mortgage will find that the majority of deals offer an interest-only repayment option

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Equity release rates starting to rise

6th November 2018

As the equity release market continues to evolve alongside people’s need for extra cash when they approach or are in retirement, it has not been totally immune from the rate rises that the residential mortgage market has witnessed of late.

As the equity release market continues to evolve alongside people’s need for extra cash when they approach or are in retirement, it has not been totally...

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Equity release popularity continues to grow

21st March 2018

2017 saw equity release grow considerably once again, attracting twice as many new customers compared to five years earlier. The second half of 2017 alone saw 35,540 customers, with more new plans agreed in those six months than in the whole of 2012.

2017 saw equity release grow considerably once again, attracting twice as many new customers compared to five years earlier. The second half of 2017 alone...

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Equity release sees record year of growth

24th April 2017

Equity release is becoming increasingly popular as a way to boost retirement income, and the sector is booming – not only did 2016 hit record levels of lending , but 2017 could follow suit, with annual growth in the sector hitting an all-time high.

Equity release is becoming increasingly popular as a way to boost retirement income, and the sector is booming – not only did 2016 hit record levels of...

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Equity release competition drives rates to new low

18th April 2017

The equity release market is continuing to evolve, and thanks to rising competition, now could be a great time to get on board, with equity release rates falling to record lows and the highest number of lifetime mortgages available in years.

The equity release market is continuing to evolve, and thanks to rising competition, now could be a great time to get on board, with equity release rates...

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Note

The Equity Release Service is provided by Mortgage Advice Bureau Later Life. Mortgage Advice Bureau Later Life is a trading name of Key Retirement Solutions Ltd. Registered office: Baines House, 4 Midgery Court, Fulwood, Preston, Lancs PR2 9ZH. Registered in England No.02457440. Key Retirement Solutions is authorised and regulated by the Financial Conduct Authority.

 

Any legal or contractual relationship will be with Mortgage Advice Bureau Later Life. The initial appointment is FREE and there's no obligation to proceed. If you choose to proceed with a recommended product, an advice fee of £1,295 would be payable upon completion of a plan. Moneyfacts.co.uk will receive a  commission from the lender. Mortgage Avice Bureau Later Life does not offer advice on investments.

 

Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment either if you click the links or if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions.

Disclaimer

All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts.co.uk will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts.co.uk recommends you obtain independent financial advice.

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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.