Equity Release Explained

Equity release is a way of releasing part of the value of your home without having to move out, to help you accomplish your retirement goals

Video transcript

Equity release explained

As we get older, we want to start achieving our retirement goals. Whether it’s to pay for home improvements, fund retirement, travel, or to help a family member onto the property ladder, equity release is a way of releasing part of the value of your home without ever having to move out, to help you accomplish those dreams.

So, how does equity release work? Equity release is available to homeowners aged 55 and over. The money is released from your home in the form of tax-free cash that you can do whatever you like with.

How much you can release depends mainly on your age and the value of your property. The money you receive from equity release is tax-free, but could become subject to tax later if, for example, you put it into a savings account.

There are two ways of releasing equity – a home reversion plan, where you sell-off a portion of your home, or a lifetime mortgage, which is the most popular form of equity release, where you take out a loan against part of your home and continue living there.

You’ll never owe more than the value of your home, and the loan is repaid through the sale of your property when you die or go into long term care.

Using a lifetime mortgage will reduce the value of your estate, but you have options to repay some or all of the interest, and even pay back some of the capital, subject to the lenders’ terms and conditions.

Equity release is a big decision but finding the right lifetime mortgage could open doors to the things you’ve always dreamed of, whatever they may be.

If you’re considering releasing equity from your home give OneFamily Advice a call. In your free initial consultation, you will have the opportunity to ask any question you may have. Your adviser will help you to find out if a lifetime mortgage is a good fit for you.

OneFamily Advice – whole-of-market lifetime mortgage advice. Give us a call on 08001448244 or head over to https://www.onefamily.com/ to book your free initial consultation.

Improve your choices in retirement

You can spend the money however you'd like. People often use equity release to pay for home or garden improvements, gift to family as an early inheritance, help family members on the property ladder, pay off debts, or simply to supplement income.

Equity release is available to homeowners aged 55 and above. Many people are now leveraging what might be their biggest financial asset – their home – to improve their choices in retirement.

How does equity release work?

The most popular type of equity release product is a lifetime mortgage, which is a loan that is repaid through the sale of your home when you die or enter long term care. You can receive the money in a lump sum or over several installments and you can spend it however you like.

Equity release is safe and flexible

Equity release is a safe way to improve your options in later life. Not only are there more products and product features available than ever, but there are also protections in place to ensure equity release works for you.

It is worth noting, a lifetime mortgage will reduce the value of your estate and it
may affect your entitlement to means tested state benefits.

Payment options

Repayments are not a requirement, though you can make regular or flexible payments if you would like to.

No Negative Equity Guarantee

Equity Release Council-accredited lifetime mortgages have a No Negative Equity Guarantee that ensures you can never owe more than your home is worth, and you have a right to remain living in it for life, as long as you abide by the terms and conditions of the loan.

You can still sell your home and move

You can move a lifetime mortgage to your new property, or downsize and pay it off, subject to meeting lending criteria and the terms and conditions of your plan.

You can switch equity release plan

If you already have an equity release plan it might be a good time to consider switching to a better deal, especially if you took out your lifetime mortgage five to ten years ago.

We can help

Our advisers offer impartial, whole-of-market lifetime mortgage advice, so you can be confident in the decision you make.

Get a free initial consultation with one of our experienced advisers, who can answer any questions you may have and help you decide whether equity release is right for you.

Request a call back


See how much equity you can release

Find out how much equity you could release by entering your details below.


Maximum loan amount:

Important: The loan amounts above are an illustration of the amount you could borrow. The actual amount may vary depending on your individual circumstances. The figures are not guaranteed and do not constitute an offer to lend. The loan amount will need to pay off any existing mortgage secured against the same property.

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