Equity Release

What is Equity Release?

Equity Release involves taking a Further Advance on an existing mortgage to access some of the difference between the value of your property and your current mortgage. It is a way of unlocking the value of your property without having to move home. It is used mostly by older homeowners who either have paid off their mortgage altogether or have only a small amount left to pay, and require a lump sum or a regular income (or both).

If you intend to live in a property until you die, the money from its sale will be used to pay the lender before anything left over is paid to your beneficiaries. If you sell the property before you die, you will need to repay the money you borrowed from the lender. With some types of loan you might also have to make regular interest payments.


Q: How much equity can I release?

A: Often lenders cap the maximum amount of equity you can release at around 35% of the current value of your property.

Q: Can I release equity to buy another property?

A: Yes, this is a common reason to release equity from your home, but if you fail to make repayments both properties are at risk of repossession.

Jargon Buster

Use the links below and the resulting list of terms on the right to locate the term you are looking for. If you can't locate it, please get in touch.

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews