Equity release UK | Questions to ask about equity release plans

Mortgage Guide
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Equity Release UK Guide
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Questions to ask about UK equity release plans

Don't sign up for an equity release plan unless you're certain it is the best deal you can possibly get.

Read, and reread, all the paperwork, and make sure you understand everything.

Things to check include

The costs

If you're considering a lifetime mortgage, what is the interest rate? Is it fixed or variable? Could you do better elsewhere?

Find out if you can reduce the interest charged by choosing a drawdown plan rather than one that pays out a lump sum.

If you're looking at a home reversion scheme, what percentage of your property's market value will you get? Again, could you do better elsewhere?

For both types of scheme, you will also need a full breakdown of the set-up costs, including arrangement, valuation and legal fees these could easily add up to a couple of thousand pounds.

The penalties

Will you face a penalty if you want out of the deal say, because you come into the cash to pay it off, or find a cheaper one elsewhere?

If you will, see if you can get a similar (or better) deal elsewhere with lower (or no) penalties.

The future

If you decide to move house, is the plan portable?

If you can't take it with you, and you can't afford to repay it and buy a new property, you could be forced to stay put.

If the plan is portable, are there any restrictions on the type or value of property you can buy?

The worst case scenario

Most plans come with a guarantee that you or your estate will never owe more than the value of your property.

Avoid ones that don't have this kind of no negative equity assurance.

For more tips on making the right choice, read Choosing an equity release plan and How to find equity release providers.

If you are interested in finding out how much equity release you could get for yourself, the calculator below will give you a rough idea of what is possible.

To get a more precise figure the best thing to do is to talk to an Equity Release Specialist. To contact a recommended one simply click the "Next" button - after entering your figures - then fill out the quick contact form. You will be contacted soon for a free, no obligation quote.

Step 1 of 2

Equity Release

Age of the youngest homeowner?
Estimated value of the property?
Total outstanding mortgage or secured loan on the property?

Approx. amount available via equity release: Minus any outstanding mortgage or loan:	£ - £
Potential Cash Available: (May vary based on personal circumstances)	£
Equity release is only available if the youngest homeowner is 55 or over. The best option for those under 55 is a remortgage. Click here now to get remortgage advice and a quote
There is not enough equity available in your property for Equity Release. Your best option is a remortgage. Click here now to get remortgage advice and a quote
There is not enough equity available in your property for Equity Release.

Get equity release advice now

Step 2 of 2

Your details

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First line of current address:	Current postcode:

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