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Equity Release

Learn More About Equity Release Options

Equity Release mortgages are not like residential mortgages. They help you secure a loan against the value of your property. In these guides we outline what makes them different, the eligibility criteria and help you decide if it’s an avenue you would like to pursue. It’s a way to free up money in your later years, but with many factors influencing the loan, it’s good to learn as much as you can from qualified mortgage professionals.

Posted On: March 8, 2022
Updated On: January 16, 2023

Can I Repay My Equity Release?

Before choosing to take out an equity release plan, you may want to know if you can repay the loan in your lifetime. There are several ways you can repay equity release, and how you pay typically depends on which type of plan you choose. From home reversion plans* to lifetime mortgages, we’re revealing the different ways you can repay equity release in this helpful guide.

Can I pay back my equity release early?

Depending on the terms in your mortgage contract, you may be able to pay off your equity release loan before you die or go into long-term care. This can be particularly beneficial if you’re looking to move house and downsize. You may incur some early repayment fees though, so it’s important to factor this cost into your budget. You can always apply to transfer your equity release to a new property should you wish to move. However, the property will need to be approved by your lender.

Some lenders offer flexible equity release loans, which allows you to pay back your loan in installments.

How do I pay back a lifetime mortgage?

Unlike conventional mortgages, there is no set timescale on when you pay back a lifetime mortgage*. Importantly, you’re not obliged to pay back your equity release during your lifetime, as in most cases the cost will be retrieved upon the sale of your property after you die. The loan amount is paid back through the sale of your property. However, as mentioned above, you may have the option to pay off your equity release loan sooner.

How do I pay off a home reversion plan?

A home reversion plan loan is paid back when your home is eventually sold. The home reversion company will receive their share of the proceeds, meaning if you initially sold all of the property to the company, they will receive all of the proceeds.

As you can see, in most cases an equity release loan is paid back after you pass away, or when you move into permanent, long-term care. Assuming you have a no-negative equity plan, the amount outstanding on your loan and any interest accrued shouldn’t exceed the value of your property. This protects your other assets and ensures your relatives won’t have to foot the bill of any outstanding mortgage payments. Essentially, it will just be written off.

Speak to Agentis today

If you’re considering acquiring an equity release plan, Agentis can help. Contact us today.

*Please note that Agentis is unable to provide advice on home reversion plans.

*A lifetime mortgage is a long term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.