Is equity release right for me?

Equity release allows homeowners over the age of 55, to release tax-free cash from their homes (provided your home is worth over £70,000) to be used for any legal reason.

So, for example, if you are looking to release cash tied up in your home to improve your retirement, then equity release could be for you.

How can equity release be used?

With equity release, you are still the legal owner of the property and you do not need to sell up and move to a new house.

Equity release is a lifetime mortgage, which is a loan secured against your home. This loan, plus the interest accumulated is then paid back at the point you, or the last remaining applicant (in the case of a joint mortgage) die or go into long-term care / sheltered accommodation.

Other examples of how people use the cash unlocked from their property are:

  • Gifting the money to a friend or relative
  • Assisting you in finally retiring
  • Helping children, or grandchildren to get onto the property ladder
  • A once in a lifetime holiday or cruise around the world
  • Pay off the remaining mortgage, to free up more money each month
  • Pay off existing debts, such as loans and credit cards to free up monthly income
  • Redecorating the house, or building an extension to improve the home’s value
  • Upgrading your vehicle to a more tax-efficient, economical one

Repayments versus no repayments

With equity release, you have the option to make monthly payments towards paying off the interest added, this helps in reducing the impact on the value of your estate, for when it’s time to be handed down to your beneficiary.

Alternatively, you don’t have to make any payments towards the interest – which, if you’ve paid off your outstanding mortgage balance, or unsecured debt, could free up additional funds for you to use in your retirement.

It reduces the value of your estate

Whilst equity release reduces the value of your estate, this does help reduce the amount of inheritance tax you will pay when the time comes.

Releasing equity can also affect your entitlement to means-tested benefits, which is important to consider.

How can Equity Release Works help?

At Equity Release Works, we put you in control and provide you with a free initial consultation. We take the time to understand whether equity release is in your best financial interests and if it is not, we will tell you and advise you of your options.

We are authorised and regulated by the Financial Conduct Authority and are also members of the Equity Release Council for your peace of mind, whilst also providing important guarantees.
Being impartial is important to us which is why we compare the whole of the market to find the plan that best suits you and your goals. All the plans we provide are guaranteed to be ‘no negative equity’ plans, which means you will never owe more than the value of your property and all plans have the approval of the Equity Release Council.

Equity Release Works is a telephone-based advice service, which allows us to keep our operating costs low and pass those savings across to you. The solicitors we recommend are all specialists in equity release, but you are also free to choose your solicitor if you prefer.