Why should you consider Equity Release?

What is Equity Release?
Put simply, Equity Release is where you can release equity (money) tied up in your home for any purpose you like. If you or someone you know are over 55 this could be a brilliant way to improve the quality of life in your retirement years and help prevent any financial concerns when you’re no longer working full-time.

Different Schemes
There are schemes to suit everyone. You can choose to make monthly repayments to the lender or not. Either way the outstanding balance is not due for repayment until you either pass away or move into long-term care.

Reasons for Equity Release
Below are some of the most popular reasons why people take out equity release:

  • Home and garden improvements
    Research conducted by Legal & General Home Finance shows that over 50% of equity release was used for home improvements. 
    Getting older can mean you may need to make adaptations in your home to enable you to keep living there. These improvements can be more affordable and less hassle than moving house. Improvements can include, carrying out a loft conversion to increase the value of the house, installing a new kitchen, and putting in a downstairs toilet to improve accessibility.

  • Paying off debts
    Many people release equity from their home so that they can pay off any debts such as a previous mortgage, car loan, or credit card.

  • To help family members financially
    It is common for people to choose to release money tied up in their home to help their children. Some use it to pay for their children's further education whilst others like to use the money to help their children onto the property ladder. Many prefer to help their children out whilst they are still alive rather than leaving them money in their Will so they can see the difference they have made to their lives.

  • Holidays and other luxuries
    Some people decide to use the funds released for 'large ticket' items such as holidays or car purchases. In many cases, equity release can mean you can live to the fullest whilst still living in your own home. 

Talk to a Mortgage Adviser
It is important to speak to a Mortgage Adviser who is a member of the Equity Release Council as they can help you to make the right decision for your individual needs. 

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.

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. 

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.

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.