Equity release guide
Frequently Asked Questions About Equity Release
Answers to common lifetime mortgage and equity release questions
Equity release can be complex. These answers are general only and should not replace personal advice based on your circumstances, property and product terms.
Equity Release FAQs
Homeowners often have questions about equity release, lifetime mortgages, moving home, no negative equity guarantees and adviser support. The answers below are a starting point only.
Important Equity Release Warnings
- Equity release may reduce the value of your estate.
- Equity release may affect entitlement to means-tested benefits.
- Interest may roll up over time.
- Early repayment charges may apply.
- Equity release is not suitable for everyone.
- Advice is important before proceeding.
What is equity release?
Equity release is a way for some homeowners to access money tied up in their property. A lifetime mortgage is one common type. It is secured against your home and is normally repaid later, often when you die or move into long-term care, subject to product terms.
Why did equity release previously have a stigma?
Older products and weaker regulation gave equity release a mixed reputation. Modern products may include more protections, but that does not mean equity release is risk-free or suitable for everyone. The details of the product and lender matter.
What is a no negative equity guarantee?
Where applicable to qualifying products and lenders, a no negative equity guarantee means the amount repaid from the sale of the property should not exceed the property value. You should check the specific product terms and receive advice before relying on this protection.
Can I move home?
Some lifetime mortgages may be portable to another suitable property, subject to lender criteria and product terms. If the new property is not acceptable to the lender, you may need to repay some or all of the mortgage and charges may apply.
What should I look for in an equity release adviser?
Look for clear, regulated advice, a full explanation of costs and risks, and guidance that considers your family, benefits, inheritance wishes, health, property, existing mortgage and alternatives.
Why speak to The Mortgage Hive?
The Mortgage Hive can help you understand lifetime mortgage and equity release options, explain the risks, and discuss whether equity release may fit your circumstances before you decide whether to proceed.
Contact The Mortgage Hive For Equity Release Advice
If you have questions about equity release or lifetime mortgages, speak to an adviser before making a decision. We can help explain the options that may be available, the important risks, and the product terms you would need to consider.
You can also read more about the Equity Release Council and how its standards may apply to qualifying products and lenders.
Helpful Equity Release Links
Continue reading with these related Mortgage Hive guides.
Need Equity Release Advice?
Speak to The Mortgage Hive about whether equity release may be suitable for your circumstances.