Home Finance

Equity Release Mortgage


An Equity Release mortgage allows you to release capital tied up in your home without having to move out.

Aimed at older homeowners, an Equity Release mortgage enables you to tap into the value of your home without having to sell up. This releases a cash lump sum for you to use as you wish: for home improvements, a holiday, repay a debt or maybe to help your family.

Two types of Equity Release mortgage are available: a lifetime mortgage, generally available from age 55 up, and a reversion scheme, available to those who are 60 or over.

A lifetime mortgage is the most common, allowing you take out a loan on your property in exchange for a lump sum. Usually, you don’t make any monthly repayments and the debt is repaid when you die or go into long term care. As there are no repayments, the interest rolls up, increasing the amount you owe.

A popular version of this type of mortgage is the ‘drawdown’ version, which sets aside a pot of money. You only draw from it when you need to and pay interest only on the cash you release.

A home reversion scheme entails selling all or part of your home to a company, in return for a lump sum and the right to remain living there. When the property is eventually sold, you – or your estate – will receive only the percentage that you still own.

As taking money out of your home can impact on your finances - from eligibility to means-tested state benefits to the value of your estate - it is vitally important you take advice from an Independent Financial Adviser. Please note, there will be a fee for providing this advice.

James Ryan Thornhill have a number of advisors who hold the required specialist qualification to provide Equity Release advice.