Unlock the value of your home in retirement

Later Life Lending: How does equity release work and could it be the right option for me?

After years of working hard to make monthly mortgage payments, your home is likely to be your biggest asset, particularly, if you’ve benefited from an increase in house prices over the last few decades.

The value of your home (minus any existing mortgage and other loans secured against it) is referred to as equity. This equity is often passed on as an inheritance. However, an increasing number of people are tapping into some of this value to help boost their retirement finances or help their children get onto the property ladder.

If you’re wondering if equity release is right for you, you’re in the right place. This article will take you through some of the basics of equity release before speaking to an expert equity release adviser.

What is equity release?

Equity release is a way for homeowners aged 55 or over to release tax -free funds from their homes without having to move. With a lifetime mortgage (the most popular type of equity release), there are typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end. Usually, that’s when you, or the last remaining applicant, either passes away or moves into long-term care. With a lifetime mortgage, you’ll still retain full ownership of your home. 

The money can be released to you as either a single lump sum or as an initial release amount, then further releases can be taken as and when needed, known as a drawdown lifetime mortgage.

With a lifetime mortgage, you have the right to remain in your home for as long as you choose to, or until you move into full time residential care or pass away. You also have the freedom to move to another property and transfer your loan without an early repayment charge (subject to the new property being acceptable to your lender at the time).

You will never owe more than the value of your home with the no negative equity guarantee.

The money can be used for a variety of purposes, and is often used for:

  • Repaying an existing interest-only mortgage at the end of its term
  • Gifting to family or providing them with an ‘early inheritance’
  • Home improvements
  • Taking the holiday of a lifetime

Lifetime Mortgage:

You borrow money secured against the value of your home and retain full ownership. The interest can be rolled up and repaid upon eventual sale or interim payments can be made so not to eat into your equity.

Are you eligible??

Hundreds of thousands of people are already enjoying the benefits of cash they’ve unlocked from their homes. However, equity release may not be suitable for everyone, which is why it’s important to get expert advice before you make a decision.                                                                                        

You may be eligible for a lifetime mortgage if:

  • You are aged 55 and over
  • You are a UK resident
  • You are a homeowner with a property worth at least £70,000

Mortgage Advice Bureau Later Life will help you to make the right decision

To make sure you receive the best possible advice, we have specialist equity release advisers that can advise you on lifetime mortgages. Mortgage Advice Bureau Later Life work with Key Retirement Solutions who provide our Later life lending proposition.

We can help you to arrange a free consultation with an expert equity release adviser. To book a free consultation for you or a family member, please get in contact.

Mortgage Advice Bureau Later Life offer lifetime mortgages only. A lifetime mortgage is a loan secured against your home. Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefully selected panel of providers.

Unless you decide to go ahead, our service is completely free of charge, as our fixed advice fee of £1,295 is only be payable on completion of a plan.

You should always think carefully before securing a loan against your property.

Talk to us!

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    Top questions about releasing equity in your home.

    Lendese have access to thousands of mortgage deals, including many exclusive deals not available elsewhere, along with specialist lenders who can assist with unique situations.


    Equity release is a scheme that allows you to take part of the value of your home as cash. It is an important decision that should be considered carefully under the advisement of financial specialists.

    There are two main types of equity release plans:

    Lifetime Mortgage – this is a loan that will be secured against your home whilst permitting you to release tax-free cash without requiring you to move out. Depending on how much you need, you will receive a certain percentage of what your property is worth. You may wish to take the money as a large lump sum or a series of smaller payments.

    You must have little to no mortgage left to pay before taking out a lifetime mortgage.

    Home Reversion Plan – this plan involves selling all or part of your home for a lump sum, a regular income or both. The amount you choose to sell will then belong to someone else. However, the advantage is you may remain living in your property until you pass away or move out.

    You will usually receive between 30% to 60% of the market value of your home, depending on your circumstances.

    One of the biggest pitfalls of equity release is releasing more money than you need. The interest rate increases as you borrow more money from your house. We recommend that you release a sensible amount of money, e.g., cover your anticipated outgoings over the next 2-3 years.

    Yes, most standard equity release schemes permit you to transfer your mortgage to a new property if you wish to move home. However, the lender must approve your new property first. If it is notably cheaper, the lender may not lend as much money against your new property. You may also need to repay some of the mortgage early.

    You must be over the age of 55 to apply for a lifetime mortgage; however, you must be over the age of 65 to take out a home reversion plan. In addition, your property must be in good condition and over a specific value.

    Depending on the type of equity release plan you opt for, it usually takes 6-8 weeks to release equity in your home.