How It Works

Your Questions Answered

Am I eligible for a Lifetime Mortgage?
If you’re over the age of 55 and own a home worth at least £70,000, you could be eligible for equity release.
Can I release equity when I have a mortgage?
Having an existing mortgage doesn’t have to stop you from releasing equity. While it is true that you can’t release equity and keep your current mortgage, it is possible to use equity release to pay it off. In fact, that is one of the most popular reasons for people to choose to release equity.
Can I remain in my home?
Yes, you can remain in your home. With lifetime mortgage products, you are guaranteed to be able to remain in your home. Only when you move into long-term care or pass away will your Lifetime Mortgage need to be repaid. The home is usually sold to achieve this.
Do I pay tax on equity release?
No, you don’t pay tax on equity release. This is because you are unlocking the value that you already own in your home, rather than earning a new income. However, if you choose to make a gift to your loved ones, inheritance tax could be due should you die within 7 years of making the gift. Your adviser will be able to help you to explore this further.
Will equity release affect my benefits?
Yes, equity release could affect your entitlement to means-tested benefits. It might be possible to structure your release so that you can avoid affecting your entitlement, such as by using a drawdown. With a drawdown, you don’t release all of the equity available to you in one go, so that you’re not borrowing more than you need. Your adviser will explain this and any potential impacts that releasing equity might have before you choose to proceed.
Why do I need to seek equity release advice?
Equity release is not right for everyone and there may be other options that are more suitable for you. Therefore, it is important to get advice from one of our qualified experts before taking out equity release.

All advisers we recommend have relevant qualifications and are members of the Equity Release Council, which sets additional rules and principles for its members to follow. They abide by a no-pressure guarantee and will only recommend a product if one is suitable for you. You will only have to pay an advice fee, if you choose to proceed with a lifetime mortgage. Your adviser will confirm their fees with you.

You will also incur legal fees, should you proceed.
What is the Equity Release Council?
The Equity Release Council is a trade body that represents the equity release sector in the UK. It aims to promote high standards of conduct and practice in the provision of and advice on equity release products, which allow homeowners aged 55 and over to release money from their property without having to make any monthly repayments. The Council also works to protect the interests of consumers and to raise awareness of the potential benefits and risks of equity release. The Council has a set of rules and principles that its members must follow, which include providing clear and transparent information, ensuring independent legal advice, offering a no-negative-equity guarantee, and allowing customers to move to another suitable property.