20 May 2025
Pros and Cons of Equity Release
Equity release, also known as later life lending is becoming more and more popular.
There were over 15,000 active equity release customers in the last quarter of 2024 totalling £665 million worth of housing which is 161 million more than the same period in 2023 (source: Equity Release Council).
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property’s equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
As with any loan, opting for equity release is a big decision and we’d strongly recommend getting advice from an Equity Release Adviser who is part of the Equity Release Council.
Pros of equity release
- Provides a lump sum tax-free cash for you to use how you wish
- Gives homeowners the option to access their property wealth without selling up
- Assessments on affordability are generally less arduous than typical mortgages
- Able to gift money before death to reduce the value of your property for inheritance purposes
- You can ringfence some of your home’s value to ensure your beneficiaries inherit it
- Sometimes you may not have ongoing monthly repayments
Cons of equity release
- It is a type of loan and interest accrued can build up over the years meaning your beneficiaries inherit less
- The range of equity you can release depends on your age and is from 20% to 60% of your home’s value
- It can be tricky to remortgage or move home once you have chosen equity release
- There may be early repayment charges if you repay the loan sooner than anticipated
- The money released can affect eligibility for some means-tested benefits.
Unlike many other Equity Release Advisers, our experts are also qualified Mortgage Advisers which allows them to discuss every other option of your home finances in an unpressurised environment.
Give us a call today: 016258 507477 or email: team@mortgagerequired.com.
Recent posts
Your House Viewing Checklist
Yesterday
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
Half of over 60s predicted to benefit from accessing housing wealth through Equity Release
4 days ago
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.
Average Age of the First Time Buyer in the UK
11 days ago
The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.
Delayed Start Mortgage from Skipton
13 days ago
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
Gardening Tips for Beginners
18 days ago
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
The Family-Backed Mortgage from NatWest
21 days ago
High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.
The Impact of Klarna on Mortgage Applications
22 days ago
‘Buy Now, Pay Later’ (BNPL) schemes, such as ‘Klarna’ are short-term loans that allow shoppers to make a purchase, but delay paying for it for an agreed amount of time.
Klarna is one of the most popular BNPL services with 18 million customers in the UK alone, and offers interest-free payment options which is appealing to shoppers. However, does it affect a mortgage application?
Buy to Let mortgages: what's happening?
27 days ago
We look at how to get the best Buy to Let mortgage rate, what's in store going forward, and options as a landlord with increasing costs.
More information
Trusted by
