What Can You Use Equity Release For? - The Mortgage Hive
Equity Release Advice
Frequently Asked Questions About Equity Release
8th December 2022
Mortgage Advice
Mortgages; What Are The Options Available?
8th December 2022
Equity Release Advice
Frequently Asked Questions About Equity Release
8th December 2022
Mortgage Advice
Mortgages; What Are The Options Available?
8th December 2022


Have you been thinking about equity release? What can you use it for? Or would you like more information regarding releasing any funds associated with an equity release? 

If these are questions you find yourself asking, you have come to the right place; here at The Mortgage Hive, we specialise in all forms of mortgage and equity advice, meaning we can give you completely impartial advice and guidance. 

If, once you have read our article, you have more questions about equity release that still need to be answered, please make sure you reach out to our team today; we are more than happy to help in any way we can. 

Equity Release - Lifetime Mortgages 

If you are over the age of 55 and a homeowner, equity release allows you to release any tax-free cash from the value of your home. It simply refers to a range of products letting you access any cash (equity) tied up in your home but keep in mind it is only available if you are older than 55. You have the decision to make about whether you want to take the money as a lump sum or a drawdown facility where you can take out money when required. You can even do a combination of both.

The Most Popular Uses Of Equity Release

When you start looking into the most popular uses for equity release, it is best to look at what most people withdraw the money for because there are a wide range of reasons. The funds are not tied down for anything specific, so you can use the money however you see fit.

Our experience over the years has given us a good understanding on why clients look for an equity release solution. Some of the most popular options people choose to spend their money on are:-

  • Repay Mortgage 
  • Supplement Income 
  • Garden/home Improvements 
  • Clear Debt 
  • Purchase Property 
  • Gift To Family 
  • Holiday 

By no means are these the only reasons our clients have chosen to go ahead with equity releases; some also go for products and services such as paying school fees, tax bills etc.

Does Equity Release Differ By Applicant Age?

One thing to make sure you are aware of is that equity release services are only available to people over the age of 55, there is no limit above this age, but you can begin the process a few months before you are 55, you just can't release the money until 55. Since we have touched upon the main reasons clients use the money that comes out of the equity release, does the reason differ by age? 

We have found over the years that clients between the ages of 55-70 are more likely to use the equity release service to help repay mortgage debts, carry out home improvements or supplement their income if they require it. 

Whereas clients who choose an equity release at the age of 70-85 generally use it for an income supplement or to give to family, clients over the age of 85 use it to pay for health care; by this, we mean adapted homes and other assisted living options.

Equity Release For Early Retirement 

Are you looking to retire early? Is it looking like a challenge with the finances you currently have? You can choose an equity release to help if you are nearing retirement age. Equity-released funds are tax-free; because of this, they are not classed as income.

If you choose to go through with the equity release to help with early retirement, most people will use the money to pay off any outstanding loans or to supplement their income simply; you can do this while you wait for your state pension to come through. 

Purchase A New Home With Equity Release 

Are you looking to move house? Somewhere you can live for the rest of your life. Or do you want to move so you can be closer to family or friends? Choosing an equity release can help you make this move and purchase your new home. It is a valuable tool to help you find your dream home and move there without stress or worry. 

Use An Equity Release To Pay An Existing Mortgage 

One of the most popular choices available is to use your equity release to pay off an existing mortgage or reduce the amount you are spending on your monthly repayments; this will reduce the financial pressure on yourself and any worries you might have. 

An equity release can help repay an interest-only mortgage or a repayment mortgage. 

One of the best benefits of using an equity release to pay an existing mortgage is that no affordability questions are asked, and your property automatically becomes the collateral for the equity release. This can be a massive relief for those with low incomes or financial troubles in the past. 

Speak To An Adviser To Find Out More About Equity Release 

Equity release can be used for several purposes, from supplementing your income in retirement to helping you pay off debts or make home improvements. Whatever your reasons for wanting to release equity from your property, The Mortgage Hive can help. 

We have a wide range of products available, and our expert advisers will work with you to find the best solution for your needs. Contact us today to learn more about equity release and how we can help you get the most from your property.