The equity release route is the golden path as more people prefer it because of the low pension rates, a rise in retirement age, and an increase in life expectancy.

Getting knowledge before going down the equity release path is imperative for whatever your reason.

ESweet as the deal seems, since many people are signing up, don’t forget to consider both sides. Equity release lending grew by 77% in the past year, according to the Equity Release Council. The council cites real-life customer needs as the leading cause of the rise.

Also, remember to understand the type of equity release:

  • Lifetime mortgages

Securing your home will allow you to have a loan, but you’ll still be the owner. What happens is after you die, the debtor sells your home, and that pays your debt. Many people are going for a lifetime mortgage even though it’s extra expensive.

  • Home reversion

You can sell part of your home to a reversion provider for a one-time sum or an agreed-upon regular payment plan. Though cheaper, the home reversion is not a favorite type of Responsible Equity Release.

Top ten reasons to choose equity release

1. There is no negative equity guarantee

When you sign up for a lifetime equity release, you’re unreliable for any extra or outstanding fees, even if the cost of your property doesn’t meet the debt at the time. In other words, whatever happens, your debt remains the value of your home, no matter what its value is.

2. You can live the life you want

The retirement dream doesn’t pan out when the reality of finances hits you. A lifetime equity release helps you live the life you wish for your retirement days, relaxingng in the sun and going on cruises.

3. You won’t have to downsize

Being asset-rich and cash poor can dampen your retirement plans. It could mean moving from your home to get some money. However, with an equity release, you don’t need to leave the comfort of your home. You’ll stay until you die or move to a care facility.

4. Determine the way you pay back your mortgage and outstanding debts

Your regular income source ceases after retirement, making it hard to keep up with debt and mortgage payments. However, an equity release of your property allows you to live stress-free and your debt paid when you die.

5. You have the right to your property for life

Once you take out a lifetime equity release on a home, it remains your property for as long as you live. Only your lenders can claim the property once you die or move to a care facility permanently.

6. Enables improvements and expansions on your property

If your retirement plan entails having your entire family lie with you, an equity release will help you access funds that will allow you to expand and improve your current home.

7. Get the amount you want

Once you retire, getting conventional loans and mortgages is challenging since there are terms that lock you out of these loans. However, an equity release gives you a lump sum at once.

8. You can financially support your family

A living inheritance for your family is possible with a lifetime equity release of your property.

9. You can supplement retirement income

With your regular income line cut off, you need the plan to make ends meet, and an equity release is that plan.

10. You can pay off an interest-only mortgage

Using an equity release to pay off an interest-only mortgage means you’ll have no monthly payments.


The advantages of getting an equity release are that it gives you options to live life the way you want after retirement.