Compare Equity Release Mortgages

Use Lending Expert to Find the Best Equity Release Mortgage Provider For You

At Lending Expert, we understand that life is short and releasing money from your home could change and significantly improve your quality of life. Whether you are looking to fund your lifestyle, make home improvements and give money to your children, we are pleased to help you find the most affordable equity release plan on the market. 

We proudly offer equity release in England, Wales, Scotland and Northern Ireland, including London, Manchester, Liverpool, Birmingham, Brighton, Yorkshire and all over the country!

Equity release can be extremely effective and life-changing. But it is important to do your homework to avoid overpaying, whilst still putting money aside for a rainy day and towards your children’s inheritance. With our price comparison table and collaboration with Age Partnership, we are delighted to present you with a list of competitive options and help you start your journey today.

 

What is Equity Release?

Equity release offers a practical way to release cash that is tied up in your home – and receive a large lump sum. Available to those 55 years and over, you can unlock around 20% to 60% of your home’s value and use this for everyday purposes, or whether you would like to make home improvements, consolidate debts or pay for a family wedding.

If you have been living in a property for many years and have paid off most of the mortgage, you will now have a lot of money tied up in your home. With an equity release provider, you could release cash from your home and receive a lump sum, tax-free, or receive smaller instalments over time.

Importantly, you and your partner can continue to live in your home until you die or go into long-term care. At this point, the lender recovers their stake and the rest is distributed amongst the remainder of your estate.

 

Useful Guides

Can I still leave inheritance?

Do you still own your home with equity release?

Is equity release safe?

What happens to equity release when you die?

 

Key Features

 

• Unlock 20% to 60% of the property’s value (lifetime mortgage)
• Could sell 80% to 100% of the property’s value (home reversion)
• Must be over 55 years old
• Receive one lump sum or small payments, tax-free
• Continue to live in your home until you die or go into care
• Can put money aside for inheritance
• Can still benefit if the property increases in value
• Interest charged circa. 3% per month
• Arranged within a matter of weeks (usually 4-6 weeks)

 

What Are The Types of Equity Release Schemes?

There are over 100 types of equity release, with combinations to draw down money on command, in stages, put money aside for inheritance and even purchase the property back. But broadly speaking, equity release companies offer two propositions:

 

Lifetime mortgages: This is the most common form of equity release and this is when you release money, capped at a fixed interest rate. You still remain the owner of the property and can continue living in it. You can choose to take out a lump sum or in bits – and interest is charged each month with the option to roll this up until the end of the loan term.

 

Home reversion plans: Home reversion is less common, but involves selling off a chunk of your property and even as much as 80% or 100% if you need to. This is likely to be below market rate. You will continue to live in the property until you die, now with a much larger cash sum. Once you die or go into care, the property is sold off and the remaining funds are shared between your estate. 

 

Reasons To Use Equity Release 

 

• Buy additional properties
• Debt consolidation
• Fund your remaining lifestyle
• Gifting to children
• Home improvements
• Pay for weddings
• Travel
• Top-up your pension

 

Equity Release Example:

If you are 60 years, your home is worth £500,000, you would be able to release £100,000 to £300,000 in one lump sum or in chunks.

 

What Are The Terms of Equity Release?

 

• Must be over 55 (lifetime mortgage) or 60 (home reversion)
• Choose between one lump sum or regular monthly payments
• Will need to own the property outright or paid off most of the mortgage
• Pay interest of around 3% per month to the lender
• Will be valid until you die or go into long-term care – your partner too

Pros of Equity Release 

Equity release has some great benefits. With life expectancy in the UK at 81 years old, there is a real opportunity to release money that is tied up in your home and otherwise not being used. With this injection of cash, you can use it to benefit and fund your lifestyle, whether it is travelling abroad or sharing this with your children and grandchildren. 

With this process, you can continue to live at your residence until you die or go into long-term care and this will apply to your partner too, so they are not left homeless or to face a heavy bill.

In fact, with lifetime mortgages, there is a ‘no negative equity guarantee’ which means that if there is outstanding debt when the property is sold, neither you or your estate will be liable to pay for it – so you are not leaving a financial burden on your children.

If you apply for a lifetime mortgage, you are not selling off part of your home, so you will continue to benefit if it increases in price for the next 10, 20 or 30 years or more.

 

Cons of Equity Release 

The downsides of equity release is that it can be expensive, because interest is charged on top, starting from around 3% per month. So if you live longer, the interest will continue to be paid or rolled up until the end of the loan term.

If you release a lot from your property, such as 60% through a lifetime mortgage or 80% or more through home reversion, you and your children do not benefit as much if the property goes up in value – which it is likely to do over a few decades.

When you speak to an advisor from Age Partnership, be sure to explain what you want to include and what you want to avoid. Equity release mortgages come in many variations, so you might want to choose one that puts money aside for your children as inheritance or helps you benefit if your home goes up in value. Make sure to consider your priorities and request them during your application.

 

How Much Does Equity Release Cost?

Equity release providers will typically charge interest of 3% each month or rolled-up until the end of the loan term. Additional costs initially may include a property survey (up to £1,000), solicitor’s fees (may be a few thousand) and broker fee (£1,500). 

Of course, if you die or go into long-term care, the lender will look to recover the amount they have lent you – and this might be from selling the property or via your estate. Any money leftover is given to your estate.

 

How Does Equity Release Affect My Children’s Inheritance?

Equity release can be designed to protect your children’s inheritance. The final amount left to your children and grandchildren will depend on the remaining value of the property, minus any interest paid.

Many providers offer an Inheritance Protection Guarantee so that you can secure a certain percentage for your children.

There are other options available such as ‘interest-only lifetime mortgages’ where you can pay a monthly interest to bring down the overall sum and more is left for your children. There are also ‘voluntary repayment lifetime mortgages’ available so that you can make the occasional payment to bring down the overall cost and put more aside as inheritance.

 

How to Apply for A Equity Release Mortgage with Lending Expert

To start the process, compare equity release providers using our comparison table provided. You can then click on ‘Apply’ and this will take to our partner at Age Partnership who will ask for a few details and start your application today.

You will need to confirm your address and how much equity you have in your home. Subject to further checks and finding the best equity release scheme for you – your application can be funded in a matter of weeks.