Senior Couple

What is Equity Release?

Equity release is a way for homeowners over 55, whose property is worth at least £70,000, to release tax-free cash from their homes. There are restrictions on the types of property that may be eligible for equity release. It is an increasingly popular way for people in, or approaching, retirement to boost their finances.

There are a number of different equity release plans available.

 

A lifetime mortgage is a loan secured against your property that runs until you either enter permanent, long-term care or you die. There are a number of different types available and you are not required to make any repayments, but you can if you wish to. If you decide not to make repayments, the interest is added to the loan amount and can quickly increase the amount owed.

A drawdown lifetime mortgage is similar to the standard lifetime mortgage. However, with the drawdown lifetime mortgage, you can access your money with more flexibility. Rather than just receiving a one-off lump sum, you have the option to release your cash over time, as and when you need it. Because you only pay interest on the cash that you have taken, these equity release plans can often prove to be more cost-effective.

A retirement interest only mortgage is a mortgage that lets you pay the interest monthly, without reducing the original amount you have borrowed. They are very similar to standard interest only mortgages, but with some key differences. With most retirement interest only mortgages in the UK, you only repay the loan when you sell your property, move into full-time care, or pass away. You must also prove you can afford the monthly interest repayments. 

A home reversion plan allows you to exchange the ownership of some or all of your property for a lump sum of cash, along with the right to stay in your property, rent-free, for as long as you live subject to the lender’s terms and conditions. These plans involve the sale of part, or all, of the property and would result in a change to the title deeds and the sale will only achieve a percentage of the property value.

An equity release plan is not the only option if you wish to free up some cash in retirement. Downsizing the property or borrowing money from a close friend or family member, could be a preferable alternative to releasing equity from the home.

Equity Release may not be suitable for everyone.

Releasing capital from your property, will reduce the amount of inheritance that can be left and may impact the receipt of any means-tested benefits.

Why choose Optimus Mortgages?
 

  • Our initial consultation is completely free, and there is absolutely no obligation to proceed.

  • We have decades of experience in financial services, and being completely independent and whole of market lifetime mortgage brokers means that we are not tied to any lender or third party, allowing us to make sure we get you the best deal.  

  • You will be designated your own dedicated specialist equity release adviser, with their own direct email and telephone number, so you can be confident that you will always be dealing with the same person.

  • Our fully qualified equity release specialists will always deal with you in plain English, not jargon. 

  • With our easy to use client portal you can receive updates on the progress of your application 24 hours a day, seven days a week, as well as being able to securely upload and review documents.

  • We offer a competitive and transparent fee structure.

Use our free calculator

See how much tax-free cash you could release from your home with our our free equity release calculator

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Book an appointment with a specialist adviser at a time that is good for you

Optimus Mortgages offer lifetime mortgages, which is a loan secured against your home. Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.

To safeguard your health, our expert advice is now available over the phone or via video appointment, whichever is right for you. If you are interested in finding out more, please get in touch, either online, or by calling us on 03330 067783. Click here for more info.

See how much tax-free cash you could release from your home with our free equity release calculator

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