Equity Release Calculator

  • Release up to 58% of your home’s value
  • Dedicated advisor to support you every step of the way
  • Equity release will be suggested only if it’s the right fit for you
  • Compare plans from multiple lenders
  • IIC Gold accreditation for nine years running

How much equity could you release?

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Equity release is a choice for homeowners who are 55 and older. It helps them access the money tied up in their homes. This can provide a tax-free cash lump sum or a way to take out money as needed to help with retirement income. You can use this money to improve your finances, make home changes, or support family members. With equity release, you can get financial support while still living in the home you cherish.

What is Equity Release?

Equity release is a financial product that lets you access the value of your home without having to move home. There are two main kinds of equity release: lifetime mortgages and home reversion plans. Both options let you get tax-free cash, but they work in different ways depending on what you need and your situation.

Lifetime Mortgage

A lifetime mortgage is a popular way to release equity. It lets you borrow money based on the value of your home while you still own it completely. You will have to pay interest on this loan. You can choose to let the interest build up or pay it off if you want. The loan and the interest will be settled when you die or go into long-term care. If you are married or in a civil partnership, a joint lifetime mortgage allows the surviving partner to stay in the house until they die or go into care.

Home Reversion

A home reversion plan means you sell part of your home to a lender. In return, you get a lump sum or regular payments. You can live in your home without paying rent until you die or move into a care home. When the home is sold, the lender gets their share of the money based on the part you sold.

Why Consider Equity Release?

Equity release can give important financial help to people who want to increase their retirement income or need money for other reasons. Here are some reasons to think about it:

  • Get Tax-Free Cash: You can use the money for home repairs, travel, or to help your family.
  • Keep Your Home: You can stay in the home you love without needing to move to a smaller one.
  • No Negative Equity Guarantee: You won’t have to pay back more than the value of your home, even if prices drop.

Equity Release and Your Tax Position

One main benefit of equity release is that the money you get is tax-free. But it's important to think about how this could affect your overall tax position. This is especially true if you already pay a higher income tax rate. Depending on how you spend the money, you might face some tax charges, so it's a good idea to talk with a financial adviser.

Consider Equity Release

Who is Eligible for Equity Release?

Equity release is usually for homeowners in the UK who are 55 years or older. How much you can release depends on several factors. These include your age, the value of your home, the type of home you have, and the type of equity release plan you select. A strong national insurance record or having a private pension can also affect your finances. This can make equity release look better for you.

Loan-to-Value Ratio (LTV)

The loan-to-value ratio helps decide how much money you can borrow. Usually, as you get older, your LTV goes up. This lets you share a bigger part of your property value. For example, a 65-year-old can share about 30% of their property value. A person who is 80 years old may be able to share up to 50%.

Understanding Interest Rates

Interest rates on lifetime mortgages can be fixed for life or change over time. The accurate loan amount you get will depend on these rates. They are currently between 5% and 6% in 2024. It is important to look around for good rates to reduce costs later on.

Basic Details Before Proceeding

Basic Details to Consider Before Proceeding

Before you start with equity release, it’s good to know some basic details that may affect your choice:

  • National Insurance Record and Voluntary Contributions: Your national insurance record can change your state pension. If there are gaps in your record, you may want to make voluntary contributions to increase your pension. This is important before thinking about equity release.
  • Private Pension and Pension Provider: Your private pension and your deal with your pension provider can change how much extra income you need. Think about how equity release fits into your full retirement plan.
  • Income Tax and Tax Year Considerations: The money from equity release is not taxed, but you need to think about your tax position. It's a good idea to talk to an equity release adviser. They can help you understand how it might affect your income tax for this tax year.

Professional Advice is Crucial

Equity release is an important choice that needs thoughtful thinking. That is why we have teamed up with Age Partnership, a top UK equity release provider. We want to give you advice that suits your needs. Our skilled equity release advisers are regulated by the FCA (Financial Conduct Authority). This means you will get reliable advice throughout the process.

The Importance of Regulation

All the equity release products we have are controlled by the FCA. This gives you important protections. These include a guarantee that you will not owe more than your home is worth and the right to stay in your home for as long as you live. Always consult with an adviser who is regulated by the FCA. This way, you can fully understand what your choices mean.

Tips for Getting the Most Out of Equity Release

  • Talk to a Financial Adviser: Before you decide, talk to a financial adviser. They can help you see how equity release works with your overall financial plan.
  • Look at Different Lenders and Interest Rates: Not all lenders provide the same terms. By looking at interest rates and conditions, you can save money in the long run.
  • Check Your National Insurance Record: Think about making extra national insurance contributions. This can help increase your state pension before using the value of your home.
Tips for Getting Equity Release

Start Your Equity Release Journey Today

Equity release might help you gain the financial freedom you want for a nice retirement. Use our free equity release calculator today to look at your choices and find out how much you can get from your home.

Frequently Asked Questions

Equity release is a good option for homeowners aged 55 and older. It helps them unlock the value of their home to add to their retirement income. Before making a decision, it's best to talk to a qualified equity release adviser. They can help you see if this is the right choice for you.

The money you can get depends on your age, the value of your property, and the kind of equity release plan you select. You can use our equity release calculator to find out an estimated loan amount you might receive.

Equity release can change means-tested benefits such as Pension Credit or Council Tax Reduction. It is important to get advice on how it may impact your finances.

Some equity release plans have charges if you pay them back early. It's very important to know the rules before going ahead. However, many plans do offer options for flexible repayment.

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