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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 26, 2022

How Much Equity Can I Release?

Before agreeing to an equity release plan, you’ll want to have a good idea of how much equity you can release. This quick guide is revealing the best way to calculate the equity on your property, the factors that might affect how much equity you can release, and the maximum percentage you can receive.

What factors affect how much equity you can release?

  • How much of your mortgage is left to pay – this will be deducted from the total amount of equity you can receive.
  • Whether you want to ring-fence a portion of your property for inheritance
  • Your age – the older you are, the more equity you may be able to release
  • You may be offered larger sums if you have certain medical conditions or lifestyle habits

How much equity can I release from my home?

The basic sum you need to calculate your total equity is as follows:

Property value – outstanding mortgage = total equity

However, when it comes to equity release mortgages, it’s not as simple as that. In most cases, you won’t be able to receive 100% of your equity. Instead, homeowners usually get up to 60% of the property value.

There are equity release calculators available online, but by far the best way to find out how much equity you can release is to speak to a mortgage advisor. They will be able to provide a detailed assessment of your circumstances and search for the best equity release plan to match your needs. They will also be able to discuss interest rates and explain how you will be expected to pay back the loan.

Unlike other mortgages, you’re not obliged to take all the money at once. You can withdraw little amounts at a time, and will only accrue interest on the amount you have taken out, not what you were offered by the mortgage provider.

Once you have all the information you need, it’s up to you to weigh up whether or not releasing equity is worth it.

Find out how much equity you could release today

Speak to Agentis today. Our dedicated and knowledgeable team are on hand to help answer all your equity release questions and help you find a suitable mortgage for you.