Further options explained
Is equity release right for me? We understand that equity release isn’t suitable for everyone. That’s why we’ll always be honest and tell you if we don't believe it's the right option for you. To help, we’ve highlighted a selection of scenarios below where equity release could be the right option for your needs, and when it’s not. Your specialist equity release adviser will work with you to determine whether a lifetime mortgage, or an alternative form of later life finance is most suitable for you during your initial advice appointment.
Downsizing By selling your home and moving to a smaller or less expensive property, you may be able to generate a cash lump sum to help boost your finances in later life. This can be a viable alternative to borrowing against your property; providing you have an appetite for the housing market and aren’t looking to remain in your current home. Unsecured borrowing Typically, through an unsecured loan, you can borrow from £1,000 up to £25,000. The term of the loan and the monthly repayments are usually fixed. So, if you make all the required payments, the loan is guaranteed to be repaid at the end. Using existing assets If you’re able to use any existing assets to help meet your needs throughout later life, such as a pension or savings, your adviser will always recommend you do so before considering property and non-property-based borrowing. Grants and benefits Grants and benefits may be available to those on a low income who need help with a one-off expense or general living costs. There’s an extensive range of financial support available for many needs, such as housing costs, cost of living, and pensions. turn2us.org.uk is a national charity that can help you understand which grants and benefits may be suitable for you. Support from friends and family Could a friend or family member provide the financial support you need? Or are you expecting to receive an inheritance windfall in the future that could help you meet your needs? Although it could be a tricky conversation to tackle, receiving support from family or friends will likely be a much cheaper option than borrowing against your home or moving.
Examples of when equity release could be the right option I want or need to clear my existing mortgage I want to boost my finances and stay in the home I love I want or need to give my family a financial gift I want or need to make home and or garden improvements to make my property more comfortable in later life My retirement income is not sufficient to make the most of later life My health is declining and I need help with everyday care
Examples of when equity release isn't the right option I don't want to take the risk of being left with limited or no property equity remaining I’m able to afford an alternative product that would reduce my cost of borrowing I need to borrow less than £15,000 I’m not willing to repay any existing mortgage secured against my home I want to use the money for gambling or short-term borrowing needs I want to use the money for investment or business purposes
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