- The amount you can release is based on your age and the value of your home.
- The cash released is tax-free.
The minimum age for equity release is usually 55, though this will differ from provider to provider. If it's a joint application, the youngest applicant should be 55 or over.
There is no maximum age for equity release, but some providers may set their own upper limits.
- Lifetime mortgage: A lifetime mortgage is a loan secured against your home. You continue to own your home.
- Home reversion scheme: With a home reversion scheme, you sell all or part of your property for less than the market value. You continue to stay in your home as a tenant.
Your financial adviser will help choose the right product and provider, and can help explain equity release. Each journey is different but here is the process you can expect to follow when releasing equity from your home; from getting equity release advice to receiving the money.
- you die; or
- move permanently out of the home and into long-term care. Find out more about care and equity release.
- Optional repayments: You can choose to make partial repayments to manage the amount owed on the loan and interest. Subject to Terms and Conditions.
- Make monthly interest payments: You can pay some or all of the monthly interest to reduce the overall cost of the loan.
- Pay back the full loan and interest: It is possible to pay back the full amount but if you do, you may have to pay an Early Repayment Charge, which could be substantial.