Equity Release Mortgage | Expert Advice From Fosters Financial
Equity release

Equity release mortgage

Your essential guide to equity release

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Equity release explained

Equity release is a form of retirement lending that enables homeowners over the age of 55 to borrow the equity they have built up in their home by paying off their mortgage. It can be released as a tax-free lump sum, in smaller drawdowns or a combination of both.

There are two main types, lifetime mortgages and home reversion plans:

Lifetime mortgages: A lifetime mortgage enables you to borrow the equity in your home by taking out a loan which is secured against your home. You will still own your property and both the debt and interest you accrue on the loan, are usually repaid when you die or move into long-term care through the sale of the property.

Home reversion plans: A home reversion plan works by selling all or part of your property below the market value, in return for a lump sum of cash, regular installments or both. You will need to be over 65 years old and can continue to live in your home as a co-owner.

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How it works

In order to be eligible for an equity release mortgage, you will firstly need to be over 55 (or 65 for home reversion) and own your own home. Some providers will also require your property to have a market value of at least £75,000. But the criteria lenders typically use to assess the amount you will be able to borrow is based on your age, health, and property.

Is equity release safe?

All equity release schemes are regulated by the Financial Conduct Authority (FCA) and governed by the Equity Release Council (ERC). You can remain in your home and if you or your partner dies or goes into a care home, the remaining partner can continue to live in the property. If you decide to take out a lifetime mortgage, you will also continue to own your property, including any increase in its value.

Do you pay tax?

The money you receive is completely tax free. But what you choose to do with your money may be taxable, such as putting your money into a savings account instead of spending it.

Is equity release a good idea?

It can be a good option for many homeowners over 55 years old to borrow money. It can be used to fund a more comfortable retirement, clear any outstanding debts or financially support your loved ones. Like any financial decision, you should seek professional advice in the first instance, which is where we can help.

Get expert advice

An equity release mortgage should not be taken without careful consideration from both you and your family first. To help you with your decision, our professional advisors can help you to understand the benefits, as well as any potential alternatives available to you.  

We will provide you with a full, no obligation recommendation and if you and your family agree that it is the best option for your needs, we will manage the entire process for you.

Interested in finding out whether it could be a good option for you? Call us today to book a free, no obligation appointment with one our advisors at a time and place to suit you.

Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

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How much can I borrow?

Subject to status and lending criteria

If your applying on your own, leave the Applicant 2’s income blank


You could borrow up to


How much deposit do I need?

Based on a minimum 5% deposit


Deposit Required


How much will it cost me each month?


Exact borrowing amount will depend on your circumstances including but not limited to income, income source, dependents, age, credit history and commitments

Monthly Payment – on a capital and repayment basis


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