If you are aged 55 or over and own your home, equity release lets you access some of the wealth tied up in your property without selling or moving. For contractors, it can provide extra funds for retirement, reducing work commitments, supporting family members, or other financial goals.
Equity release is not right for everyone. It will reduce the value of your estate and may affect entitlement to means-tested benefits. We provide whole-of-market advice, comparing all available options and clearly explaining the benefits and risks before you make a decision.
Equity release is a range of products that allow homeowners aged 55 and over to access the equity in their property as a lump sum, regular income, or a drawdown facility without having to sell the property or make monthly repayments during their lifetime.
The most common form is a lifetime mortgage. You borrow a percentage of your property’s value against the security of the property, with interest rolling up over time. The loan is repaid from the sale of the property when you die or move into long-term care. A home reversion plan involves selling a share of your property to the provider in exchange for a lump sum or regular income, while retaining the right to live in the property for life.
The amount available through equity release depends primarily on your age and the value of your property not on your income. Unlike a standard residential mortgage, there is no income assessment for a lifetime mortgage. This is particularly relevant for contractors who are winding down their contracting activity and moving toward retirement.
As a general guide, lifetime mortgage providers will typically lend between 20% and 50% or more of the property’s value, with the maximum percentage increasing with age. Enhanced rates are available for applicants with certain health conditions
As the loan is repaid from your property’s sale, the value of your estate may be reduced.
Regulated plans ensure you will never owe more than the value of your home.
Accessing cash from your property could affect eligibility for certain means-tested benefits.
The longer the plan runs, the greater the total repayment is likely to be.
Understanding the financial, legal and estate planning implications is essential before proceeding.
Equity release is not the only way to access property wealth in later life. Downsizing releases equity without ongoing interest charges. A retirement interest-only mortgage allows you to borrow against your property and pay interest monthly, with the capital repaid on death or sale. A standard remortgage may be possible if you have sufficient income. We review all options before recommending equity release and present the alternatives alongside it.
The process begins with an initial consultation to understand your circumstances, objectives and financial position. We then research the market and present suitable products with a full explanation of costs, implications and alternatives. Equity release requires independent legal advice your solicitor will review the terms and confirm that you understand them before the transaction completes.
No lifetime mortgage eligibility is based on age and property value, not income. This is one of the reasons equity release can be a useful option for contractors who are winding down their activity and whose contracting income is reducing or ceasing.
Yes most lifetime mortgage products are portable, meaning you can transfer the loan to a new property if you decide to move, subject to the new property meeting the lender's criteria.
The loan is repaid from the sale proceeds of the property. Your estate or beneficiaries do not need to fund the repayment personally. The no-negative-equity guarantee means the loan cannot exceed the property's value.
Yes most modern lifetime mortgage products allow you to make voluntary partial repayments, typically up to 10% of the outstanding balance per year without early repayment charges.
Yes equity release is regulated by the Financial Conduct Authority. We are authorised to advise on equity release products. We are also members of the Equity Release Council, which requires us to only recommend products that include the no-negative-equity guarantee.