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
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
23 days ago
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
25 days ago
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
25 Jul 2025
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
More information
Trusted by
