Home improvements

Releasing equity from your home

How does it work?

Equity release is a way to unlock money tied up in your home with a loan

  • When you sell the property, the lender takes back the amount you owe from the sale and the loan is paid off
  • Home equity loans are only available to homeowners over the age of 55, and the amount you can borrow depends on your age
  • This type of loan can be expensive, and the amount you get in cash can be a lot less than the amount of interest you have to pay back.

What can I use it for?

You may want to release money from your property to pay for home improvements, or to use the money to supplement your pension.

If you're looking to release equity to pay off an existing mortgage, check out our paying off your mortgage guide.

Like all financial decisions, releasing money from your home is something that needs careful thought.

Products you can use to release equity

Lifetime mortgage

What is a lifetime mortgage?
  • This is the most common form of equity release where you borrow a sum of money from your home's value
  • The amount you could borrow depends on your age and the value of your property
  • Interest builds up on the amount you borrow, but you don't usually pay anything back until you sell your home, pass away or go into long-term care
  • The amount you repay will never exceed the value of your home.

Home Reversion

  • This is where you sell all or a share of your property to a company which gives you a tax-free lump sum or a regular income
  • You are then a tenant of your home (and often a co-owner) and live rent free
  • The amount you receive depends on your age and situation
  • Most home reversions give you less than 100% of your property value, and can give you as little as 20%
  • You live in your home until you die, at which time the home reversion company will sell the property.

How we can help

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Thinking of remortgaging?

This is another way you could raise money for home improvements and other costs you may need to cover.
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Borrowing more on your mortgage

You could also borrow more on top of your existing mortgage for a range of reasons. Read our guide to learn more. Products available to over 18s.
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How much do you need?

Our budget calculator can help you work out your income and outgoings to see how much extra money you may need.

Is there something else you're looking for?

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