Questions people often ask us
Can you recommend an equity release lender?
When you complete debt advice with us and later life lending is an option for you, we would guide you through how to get started with that. Equity release is a type of later life lending.
Or, we suggest you visit the MoneyHelper website for free and impartial advice about equity release and mortgages.
Can I keep my home?
Yes. But it depends on which type of product you release equity through.
With a lifetime mortgage, you remain the owner of your property .
You can remain in your home as long as the property is in good repair and you do not go bankrupt.
With a home reversion plan, you sell all or part of your property in exchange for a tax-free lump sum, while continuing to live in your home rent-free.
Are there any fees for releasing equity?
Yes, these are set by the company you release your equity through. They do vary and can depend on the value of the property. The fees will usually be broken down by:
- Advice fee: Some companies will charge you for advice
- Valuation fee: Most lenders offer a free property valuation on any new applications. There is often a fee for any further advance applications
- Legal fee: You should agree a fixed fee with your solicitor. You can do this once the equity release offer is confirmed. Fees depend on the work needed
- Application fee: This can depend on the product your advisor recommends. Paying a fee may offer a cheaper interest rate and be cheaper in the long run
Your advisor will explain all fees and charges to you.
You should choose a solicitor who specialises in equity release and who is a member of the Equity Release Council.
If I release equity, can I still sell my home or downsize?
This is usually possible. This solution might not be right if your house is already for sale or if you want to move soon.
Can I use equity release to buy a new home?
Yes, you can repay your product or, depending on the property you already own, transfer the product to your new home. But there may be charges for doing so.
How do I know if my property is suitable for equity release?
The property needs to be in a good state of repair. Your advisor will talk this through with you.
How long does it take to release equity?
On average, eight to ten weeks from the application being submitted. But this depends on how long valuations and the legal work take.
What kind of interest rate can I expect?
Different products have different features and rates. You will need to talk this through with your advisor.
Most lenders offer a fixed interest rate for the life of the mortgage, giving you peace of mind.
Will I be able to leave an inheritance?
Any inheritance will be what is left over after:
- The house sells
- The loan is paid back
Ask your advisor about "inheritance protection". This protects some of the property's future value.
Do I need to pay my mortgage off first?
Yes, you will need to repay any existing mortgage, but you can use funds from your equity release plan to clear that balance.
Can I pay back equity release?
Yes. Most providers will let you make flexible repayments. However, some charge for paying back the plan in full.
What are the alternatives to equity release?
You could:
- Downsize or move into a cheaper property
- Use savings
- Take out more credit, such as a loan
- Apply for support from the government
If your equity release would be for debt problems, you could also look at:
- A repayment plan (making lower, affordable payments to your creditors)
- An insolvency solution, such as an individual voluntary arrangement (IVA)
- Rent part of your home
- Apply for a retirement interest only mortgage
- Borrowing from family or friends
It is important to get the facts before making a decision.