Equity release can provide homeowners aged 55 and over with access to tax-free cash from the value of their home, without the need to move or make regular monthly repayments.
For many people, it can help support retirement plans, improve quality of life, or provide financial flexibility later in life.
Equity release is a way for homeowners aged 55 and over to unlock some of the value tied up in their property while continuing to live in their home. The money released is tax-free and can be taken as a lump sum, smaller withdrawals, or a combination of both, depending on the product chosen.
The most common form of releasing equity is a lifetime mortgage. This is a loan secured against your home that does not usually require monthly repayments. Instead, the loan and any interest are typically repaid when your home is sold, usually after you pass away or move into long-term care.
Equity release allows homeowners to access funds without downsizing or selling their property. This can be appealing for those who wish to remain in familiar surroundings while gaining financial flexibility later in life.
Funds released through equity release are often used to supplement retirement income, make home improvements, help family members financially, repay existing debts, or simply provide peace of mind.
It’s important to understand that releasing equity will reduce the value of your estate and may affect entitlement to means-tested benefits. These considerations make professional advice a crucial part of the process.
At iMAB, we help you understand what it is, how it works, and whether it aligns with your financial and personal circumstances.
With a lifetime mortgage, you borrow against the value of your home while retaining ownership. The amount you can release is usually based on your age, the value of your property, and the lender’s criteria.
Interest is charged on the amount borrowed, and unless you choose to make voluntary repayments, this interest typically rolls up over time.
This means the total amount owed can increase, which is why understanding long-term implications is so important.
Many modern equity release plans offer features such as no negative equity guarantees, ensuring you will never owe more than the value of your home. Some also allow optional repayments to help manage interest growth.
These products are regulated and often follow standards set by the Council, including the right to remain in your home for life and the ability to move to another suitable property in the future.
Before completing a plan, you are required to receive independent legal advice. This ensures you fully understand the terms, risks, and obligations involved.
Independent advice helps ensure equity release is explored alongside alternative options, such as downsizing or using savings, before a decision is made.
Equity release may be suitable for homeowners who are asset-rich but cash-poor, particularly those looking to supplement retirement income or manage rising living costs.
It can also be considered by those who wish to improve their home, fund long-term care planning, or support family members financially without selling their property.
However, releasing equity is a long-term commitment and may not be suitable if you plan to move in the near future or want to preserve as much inheritance as possible.
The impact on inheritance is an important consideration for many people. Releasing equity will reduce the value of your estate, which may affect what you leave behind.
This can also affect eligibility for certain state benefits, depending on how the released funds are used or held.
At iMAB, we ensure this is only recommended when it is appropriate, fully understood, and aligned with your long-term plans.
Equity release is a major financial decision, which is why clear, independent and responsible advice is essential.
If you’re considering releasing equity or would like to explore your options, our advisers are here to help.
We offer: No-obligation conversations, clear explanations of equity release products, consideration of alternatives, appointments by phone, video, or face-to-face.
Speak to iMAB today to discuss releasing equity and make an informed decision about your future..
The most common type is a lifetime mortgage. Home reversion plans are less common and work differently.
Yes. With a lifetime mortgage, you retain ownership of your home.
Most plans do not require monthly repayments, although voluntary payments may be available.
Yes. Releasing equity will reduce the value of your estate and the inheritance you leave behind.
Most plans allow you to move to another suitable property, subject to lender approval.
Yes. Equity release is regulated, and advice is required before proceeding.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
