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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: January 5, 2023
Updated On: January 16, 2023

How Can I Use the Money I Get From Equity Release?

Many people who are looking to release equity from their home are hoping to acquire money for a specific purpose. In this guide, we’re looking at exactly how you can choose to spend your money and whether there are any limitations.

The good news is that with equity release, you can spend the money exactly how you choose.

However, here are some of the popular ways people choose to spend the money:

  • Home improvements
    • If your home is looking a little jaded or you would like to improve the value with an extension or new driveway, you can use the current value of your home to fund these projects. Adapting your home to suit your changing circumstances.
  • Home insulation
    • Upgrading your property for energy efficiency and to make it cheaper to run. This can include purchasing insulation for your home.
  • Debt consolidation
    • Equity from your property can be used to pay off debts. If you’re looking to pay off your debts, you may need advice on how to responsibly pay each of your creditors and ensure fair treatment.
  • Living inheritance
    • Whether you want to support your children or grandchildren by helping them to buy a home, get married or help them through other life events, equity release is one way to do that.
  • Fund retirement plans
    • If you want to make the most of your retirement, but your current funds don’t stretch far enough, it could be worth looking into your options.
  • To buy a second home
    • You may want to buy a holiday home in your retirement. Equity release could help to fund this.

Living Costs

You may also choose to put some money aside to cover essential living costs

With equity release, you can receive a tax-free lump sum against the value of your property. Something to bear in mind is that the money you receive will be below the actual value of your home. Any outstanding mortgage will be deducted from the total amount you can borrow.

You also don’t have to put a loan against the entire value of your home. You can choose to ring-fence a portion.

Find out more about Equity Release Loans by booking a free initial consultation with our Whole of Market mortgage brokers.

*Equity release is not right for everyone and may reduce the value of your estate.