Equity Release Pro’s and Cons: 10 Common Questions Answered

Unlock cash from your home and stay in it. Here’s everything you need to know before you decide.

If you’re over 55 and a homeowner in the UK, you might be considering equity release as a way to free up cash in later life. But with so many options and opinions, it’s easy to feel unsure. Below are the 10 most common equity release questions answered in plain English – to help you make informed choices.

1. What is equity release?

Equity release is a way for homeowners aged 55 or over to access some of the value tied up in their home, without having to sell or move. The money released is tax-free and can be taken as a lump sum, regular payments, or both.

2. Will I still own my home with equity release?

Yes – if you choose a lifetime mortgage, which is the most popular type of equity release, you remain the legal owner of your home. You continue living in it for the rest of your life or until you move into permanent care.

3. Are monthly repayments required?

Most lifetime mortgages do not require monthly repayments. The interest is usually added to the loan and paid off when your home is eventually sold. Some plans allow voluntary payments to reduce interest build-up.

4. Can I still leave an inheritance?

Yes, although equity release does reduce the value of your estate. However, some plans allow you to ring-fence a percentage of your home’s value to leave to loved ones. Always discuss your wishes with a qualified advisor.

5. Am I eligible for equity release?

To qualify, you must typically:

• Be aged 55 or over
• Own a property in the UK worth at least £70,000
• Either own the home outright or have a small mortgage that can be paid off with the release

6. How much money can I release from my home?

This depends on your age, property value, and sometimes your health. Generally, the older you are, the more you can release. Use our free equity release calculator to get an instant estimate based on your situation.

7. Can I move home after taking equity release?

Yes – most modern equity release products are portable. That means you can move to another suitable property and transfer your plan, subject to the lender’s approval.

8. Could I owe more than the value of my home?

No – not if your plan includes a No Negative Equity Guarantee (standard with all products approved by the Equity Release Council). This ensures you or your estate will never owe more than your home is worth.

9. How long does the equity release process take?

From application to receiving funds, the process usually takes around 4 to 6 weeks. Times may vary depending on legal and valuation requirements.

10. Is equity release the right choice for me?

Equity release isn’t suitable for everyone. It may affect your entitlement to means-tested benefits and will reduce the value of your estate. That’s why it’s vital to get independent financial advice before proceeding.

Need Personal Advice on Equity Release?

Everyone’s situation is different. If you’re asking, “Is equity release right for me?” – the best step is to get professional advice from FCA-regulated experts.

Visit equityreleaseadvisors.co.uk to explore your options and use our free equity release calculator today.

Get clear, honest advice – with no pressure and no obligation.