Equity Release
Unlock the Potential of Your Home with Equity Release
- Release tax-free cash with lifetime or home reversion mortgages, with a fixed interest rate and no hidden costs
- Receive expert guidance on equity release at no additional cost when you approach us directly
- We'll clearly outline the benefits, drawbacks, and expenses of securing a long-term loan against your home.
Equity release: what is it?
Equity release allows you to access some of the value of your home without needing to move. There are two main types available. The first and most popular is a lifetime mortgage, a long-term loan secured against your home’s value. The second is a home reversion plan, where you sell all or part of your home to a provider for less than its market value in exchange for a tax-free lump sum or a regular income, while continuing to live there rent-free.
Lifetime mortgages: how do they work?
This is a long-term loan secured against the value of your home, which you can apply for any time after the youngest applicant reaches 55. You receive a cash lump sum with no monthly repayments. Instead, interest accumulates over time on both the borrowed amount and the interest already added, which can significantly increase the total owed.
When you (or your partner, if taken jointly) pass away or require long-term care, subject to terms and conditions, the loan and accumulated interest are repaid—typically from the proceeds of selling your home.
It’s important to understand that any form of equity release will reduce the amount you can leave to loved ones. It may also have tax implications and could affect eligibility for certain welfare benefits.
Our free calculator can give an illustrative example of how much equity you could release from your home:
Eligibility for equity release mortgage
Before diving into the finer details, let’s first determine if equity release is an option for you. To qualify, you must:
- Be at least 55 years old (this applies to all homeowners)
- Own a property in the UK (excluding the Isle of Man and the Channel Islands)
- Have a home valued at £75,000 or more
- Seek to borrow a minimum of £15,000
Reasons for using equity release
That’s largely your decision. However, releasing equity is a significant commitment, so we need to ensure it’s for the right reasons when you apply for a lifetime mortgage. You might use it to:
- Modernise your outdated kitchen
- Enhance your retirement lifestyle
- Assist your children in stepping onto the property ladder
- Pay for care for a loved one
- Settle outstanding debt before/after entering retirement
Talk with an advisor about equity release
Premier ERC have access to over 3000 qualified advisers ready to discuss your equity release needs.
Is equity release safe to use?
Yes, our advisers are regulated by the Financial Conduct Authority (FCA).
When you take out a lifetime mortgage with one of the most reputable lenders our advisers work with, we guarantee that neither you nor your estate will ever have to repay more than the amount your home sells for, provided it is sold at the best price reasonably obtainable.
Pros and cons of Lifetime Mortgage
Pros of a Lifetime Mortgage
- You will continue to own your home
- You could leave a small or significant inheritance
- A personalised interest rate tailored to your circumstances
- Access funds as needed and make flexible repayments
- Interest applies only to the amount you withdraw
- Lifetime mortgages are transferable if you move
- Enjoy protection if you choose to downsize in the future
Cons of Lifetime Mortgage
- Interest costs will roll up add up over time if no interest payments are made
- Reduces the amount left behind for beneficiaries
- It may have tax implications and could affect some benefits
- It’s a significant decision with long-term commitment
- Legal advice is required (our advisers are here to assist!)
Pros and cons of Retirement Interest-Only Mortgage (RIO)
Pros of a Retirement Interest-Only Mortgage (RIO)
- You will continue to own your home
- Interest payments prevent interest build-up
- Often easier to qualify compared to standard mortgages in retirement
- Fixed or variable rates available
- Loan repaid on death or moving into long-term care
Cons of Retirement Interest-Only Mortgage (RIO)
- You must make regular monthly interest payments
- Risk of repossession if payments aren’t kept up
- Reduces the value of estate left behind
- May affect entitlement to some means-tested benefits
- Lender affordability checks required
Pros and cons of Home Reversion
Pros of a Home Reversion
- You can release a tax-free lump sum or regular income
- No repayments or interest charges
- Guaranteed right to remain in your home for life (or until you move into care)
- You can ring-fence part of your home’s value to leave as inheritance
Cons of Home Reversion
- You no longer fully own your home (part or all sold to provider)
- You receive less than full market value for the share you sell
- Reduces inheritance significantly
- Difficult to reverse once agreed
- May affect benefits or tax position
Find out how much
tax-free cash you could release from your home
We have created a free calculator to give an illustrative example of how much equity you could release from your home.
How long does it take for equity release?
A straightforward equity release mortgage application with us typically takes around 8 to 10 weeks, from the initial application to the funds being deposited into your bank account.
Our qualified equity release advisers work with you every step of the way to help you complete your application and keep you updated on progress.
Equity release FAQs
What are the various types of equity release?
There are two primary ways to release equity from your home.
The first is a lifetime mortgage, which is a long-term loan secured against your home’s value. With this option, you retain ownership of your home.
The second option is a home reversion plan. This is less common and involves selling all or part of your home to a provider. You can then continue living in the property as a tenant without having to pay rent.
Will I retain ownership of my home?
With a Lifetime Mortgage, yes, most aspects will remain unchanged. You’ll still be responsible for insuring your home and covering council tax, energy, and water bills. Maintaining the property in good condition is also required. You can continue living there until the last surviving owner passes away or move into long-term care, in accordance with terms and conditions.
With a Home Reversion Plan, you will be selling all or part of your home in exchange for a tax free lump sum. Therefore, you will not own the percentage of the part you sell.
Are there any associated costs?
One of our equity release advisers will provide a detailed breakdown of any applicable fees when they present your personalised lifetime mortgage plan. These fees will vary based on your individual circumstances.
What happens when I decide to sell my property?
In most cases, the lifetime mortgage is repaid when the house is sold.
If you move into long-term care, you or your solicitor will handle the sale. If you remain in your home until you pass away, the property will be sold by an executor managing your estate if you have a will, or by administrators if you do not.
Any remaining funds after repayment belong to you or your estate.
Is it possible to repay the lifetime mortgage early?
You can choose to repay the lifetime mortgage at any time by settling the loan and any accumulated interest. However, since lifetime mortgages are intended to be long-term commitments, they may not be the best option if you plan to repay early.
As with other mortgages, repaying early may incur a significant early repayment charge. Your equity release adviser will be able to assist you with any queries you have regarding this.
Why choose Premier ERC for equity release?
The Premier Equity Release Club is made up of over 3,200 qualified advisers who specialise in equity release.
- Our advisers have direct access to all 10 major lending providers, making it easy to find the best deals for you
- Over 3,200 qualified advisers to assist you
- Over 24,500 clients helped
- £400 million+ of funds have been released
- 130+ years of experience
- 5 Star Reviews on Trustpilot
- Nominated as a Finalist for Best Distributor for Adviser Support at the British Later Life Lending Awards 2025
"Easy to use and got the results i wanted made the process so much easier ..Will continue to use for every case. A game changer."
Debbie
Equity release customer
Equity release information
Request a no-obligation callback from a qualified equity release adviser
Start by booking a call with one of our highly qualified equity release advisers by completing the form below.
Any figures shown are indicative and should not be regarded as a formal offer. Premier Equity Release Club are not authorised or regulated by the Financial Conduct Authority. Any information in this website is aimed at providing you with information only. Before taking out a lifetime mortgage or home reversion plan, please seek advice from a qualified adviser (please click here to refer your enquiry to a local adviser), who will provide a personalised illustration and discuss the suitability of this type of product for your needs. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
