Key facts:

• No monthly repayments required
• Interest rolls up over time
• Repaid when property sold
• Amount based on age & property value

LTV Percentage

The amount you can release grows with age. Typically 20-25% at age 55, rising to 40-55% at age 90+. Lenders use actuarial tables based on life expectancy.

Deduction Order

1. Outstanding mortgage cleared first
2. Existing equity release settled
3. Remaining value becomes available to you

Interest Impact

Rates around 4-7% (2025). Interest compounds monthly but you choose when to repay. Drawdown keeps interest lower by releasing funds gradually.

Will this affect state pension or benefits?

Equity release is disregarded for Pension Credit and most benefits. However, it may impact means-tested benefits. Always check with a benefits advisor.

Can I still move house?

Yes, most plans are portable. You can transfer the loan to a new property of similar or greater value, subject to lender approval and valuation.

What if I change my mind?

14-day cooling-off period allows full refund with no penalties. After this, early repayment charges may apply (typically 1-10% of amount repaid).

Do I own my home?

You retain full ownership and rights to live there. The loan plus interest is repaid from your estate when you pass away or move into long-term care.

Overestimating needs

Releasing too much creates higher compound interest. Start with drawdown for flexibility as circumstances change.

Ignoring inheritance wishes

Discuss plans with family early. Consider life insurance or gifting strategies to preserve inheritance.

Skipping advice

Free Equity Release Advice Service mandated by law. Independent advisors compare 2,000+ plans for best rates.