Calculate Your Equity Release
Your Equity Release Estimate
Maximum Release
Net Cash Available
Release Percentage
Remaining Equity
Detailed Calculation Breakdown
Understanding Equity Release
What is Equity Release?
- Access cash tied up in your property
- Available to homeowners aged 55 and over
- No monthly repayments required (lifetime mortgage)
- You retain ownership of your home
- Loan repaid when property is sold
- Tax-free cash release
Types of Equity Release
- Lifetime Mortgage: Borrow against your home
- Home Reversion: Sell part of your home
- Interest-only: Pay interest monthly
- Drawdown: Access funds as needed
- Enhanced plans: For health conditions
- Joint applications: For couples
Protection & Guarantees
- No negative equity guarantee
- Right to remain in your home for life
- FCA regulated products
- Equity Release Council standards
- Independent financial advice required
- Cooling-off period protection
Important Considerations
- May affect inheritance and benefits
- Interest compounds over time
- Early repayment charges may apply
- Impact on care home funding
- Alternative options to consider
- Professional advice essential
Equity Release Strategy Guide
Equity release is a significant financial decision that requires careful consideration. Our comprehensive guide helps you understand the options, benefits, and potential drawbacks to make an informed choice.
Assess Your Needs
Before considering equity release, clearly define why you need the money and explore all available options.
- Calculate exactly how much you need
- Consider the purpose: home improvements, debt consolidation, lifestyle
- Explore alternatives like downsizing or family loans
- Review your pension and benefit entitlements
Compare Product Types
Different equity release products suit different circumstances. Understanding the options helps you choose the right one.
- Lifetime mortgage: Keep ownership, no monthly payments
- Home reversion: Sell percentage, guaranteed tenancy
- Interest-only: Lower debt growth, monthly payments
- Drawdown: Access funds gradually as needed
Consider Your Family
Equity release affects your inheritance and family's financial future. Open communication is essential.
- Discuss plans with family members
- Consider impact on inheritance
- Explore family assistance alternatives
- Plan for care costs and future needs
Get Professional Advice
Independent financial advice is mandatory for equity release. Choose a qualified adviser who specializes in later life planning.
- Find an FCA-authorized adviser
- Check Equity Release Council membership
- Compare quotes from multiple providers
- Understand all costs and charges
Frequently Asked Questions
Essential information about equity release in the UK
Who is eligible for equity release in the UK?
Equity release is available to UK homeowners aged 55 and over, with a property worth at least £70,000. The property must be your main residence, in good condition, and typically have low or no outstanding mortgage. You must own the property outright or have a small remaining mortgage that can be paid off with the equity release funds.
How much equity can I release from my home?
The amount depends on your age, property value, and health. Typically, you can release 25-55% of your property value. At age 55, most lenders offer around 25%, increasing by approximately 1% per year. By age 85, you may access up to 55% of your property value. Enhanced rates may be available for certain health conditions.
Will I still own my home after equity release?
Yes, with a lifetime mortgage (the most common type), you retain full ownership of your home. You have the right to live there for life or until you move into long-term care. The loan plus accumulated interest is repaid when your home is eventually sold. With home reversion, you sell a percentage of your home but retain the right to live there.
What are the costs and risks of equity release?
Costs include arrangement fees (typically £1,500-£3,000), valuation fees, legal fees, and ongoing interest charges. Risks include reducing your inheritance, potential impact on means-tested benefits, early repayment charges if you want to move, and compound interest growth over time. Always seek independent financial advice before proceeding.
Are there alternatives to equity release?
Yes, alternatives include downsizing to a smaller property, taking out a standard mortgage or loan, asking family for help, renting out a room, or accessing pension benefits. Consider selling non-essential assets, using savings, or exploring government benefits you may be entitled to. Compare all options carefully before choosing equity release.
How does equity release affect my benefits and inheritance tax?
Equity release can affect means-tested benefits like Pension Credit or Council Tax Support, as the cash released may be considered savings. However, it can reduce your estate for inheritance tax purposes. The money released is tax-free, but interest on lifetime mortgages compounds over time. Seek professional advice to understand the full implications for your specific situation.