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How to release equity from your home

Equity release can be a useful way to bring in some extra income, pay off debts or raise money to help family members.

What is equity?

In its simplest terms, house equity is the value of the proportion of your home that you own.

So, the amount your home is worth minus any mortgage.

If the outstanding balance of your mortgage is £250,000 and the value of your property is £300,000, for example, then you have £50,000 equity in the property. If your mortgage has been paid off completely, then you will have 100% equity.

To put it another way:

Equity = the deposit you paid when you bought your house + the amount you've already paid off your mortgage + any increase in the value of your home

Why release equity from your home?

Equity release is an increasingly popular way to access money. It allows you to dip into the money you've put into your home over the years without the upheaval of moving home.

There are a number of benefits of equity release. For example, you might want or need to:

  • Help younger generations onto the property ladder
  • Have some extra money on top of your pension
  • Pay off debts
  • Pay a bill or cost you didn't expect
  • Carry out home improvements
  • Simply improve your lifestyle

How to release equity from your home

There are two types of equity release products: lifetime mortgages and home reversion plans.

Most people choose to use a lifetime mortgages to release equity so this article looks at these specifically. A lifetime mortgage is a loan that is repaid when you die or enter long term care.

It's a complex product and can only be taken out through a professional, regulated adviser. The process of getting one can be broken down into seven key stages:

Speaking to a financial adviser

They will need to be a specialist in equity release, like the OneFamily Advice team.

Fact finding and providing recommendations

After speaking to you and agreeing next steps, your adviser will research the right product for you and let you know what they recommend.


If you're happy to go ahead, your adviser will complete the application on your behalf and send it to your chosen provider. Please note, providers can't accept an application that come directly from you, an adviser has to apply on your behalf.


The provider will send someone out to value your property.

Receiving a mortgage offer

All being well, your provider will send out a loan offer which you will then discuss with your solicitor.

Making an appointment with a solicitor

You'll then need to meet with a solicitor to make sure you understand what you're agreeing to. They'll also take copies of your identification and arrange for you to sign the mortgage offer acceptance.


The provider releases the funds to your solicitor and all the legal and adviser fees are paid.

Can I release equity from my home?

To release equity from your home you must be:

  • Aged 55 or over
  • Living in your own home
  • Looking to borrow at least £10,000
  • A resident of England, Wales, Scotland or Northern Ireland
  • Own a home worth at least £70,000

Speak to us

Find out more about releasing equity from your home with a free initial consultation. We can answer any questions you may have and there's no commitment to continue with the process.

Request a call back



Try our equity release calculator

See 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.

You may also be interested in:

What is equity release and how does it work?

Equity release can help you turn your property into valuable retirement income.

How long does equity release take?

A lifetime mortgage application usually takes between 5 and 8 weeks in total.

Meet the OneFamily Advice team

Get to know the advice team who will guide you through the lifetime mortgage process...

How much does equity release cost?

Find out about all the costs you can expect if you're considering equity release.