As the name suggests, equity release plans allow you to boost your income by freeing up part of the value of your home.

They are offered by a range of specialist providers and most are available only to homeowners aged 60 and above.

Basically, the lender gives you a loan and in exchange charges interest or takes a proportion of the eventual sale price of your property.

However, equity release is both complicated and very costly, so it should always be considered a last resort.

Advantages of Equity Release

You use your equity in your property get hold of extra cash to help you enjoy your retirement, without having to sell up and move to a cheaper property.

The Disadvantages of Equity Release

Equity release schemes tend to be extremely complex and offer poor value for money.

If you really need to raise the money, consider an ordinary mortgage (possibly with a mortgage guarantor), a personal loan or even downsizing first.

Also check what state benefits and grants you might be entitled to.

(For more about these options, read Mortgages for the over-60s and What if I can’t get a mortgage?)

To find out more, read The different types of equity release plan.

If you are interested in finding out how much equity release you could get for yourself, the calculator below will give you a rough idea of what is possible.

To get a more precise figure the best thing to do is to talk to an Equity Release Specialist. To contact a recommended professional simply click the “Next” button – after entering your figures – then fill out the quick contact form. You will be contacted soon for a free, no obligation quote.

 

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