Equity Release Schemes

Equity Release Mortgage - What is an equity release mortgage?


Equity release mortgages allow clients over the age of 55 to withdraw some of the value they have tied up in their property. This money can be released now to improve the quality of their lives.


An equity release mortgage is probably the most common way of doing this. It involves raising a mortgage on your property. On completion you receive the cash raised by cheque or paid into your bank account. As equity release mortgages involve borrowing money, interest is charged on the loan. Most equity release mortgages do not require you to make monthly payments. The interest is added to the loan. This means the size of the equity release mortgage increases over time.  However, it gives clients the freedom to use the money now to improve the quality of their lives.


What can I use and equity release mortgage for?

Clients can use the money from an equity release mortgage for virtually any legal purpose. We have seen clients use the money to

Pay off mortgages, loans or credit cards

Pay for home improvements

Make essential repairs to their homes

Pay for luxuries such as a holiday of a lifetime or a new car

Am I eligible for an equity release mortgage?


Any client interested in this would need careful advice but speaking generally, all clients need to be over the age of 55, own their own home, have a reasonable credit score and not rent the house to someone else. Different equity release companies have different requirements but the above are pretty much common to all


Are there alternative to equity release mortgages?


For those clients who do not want an equity release mortgage for whatever reason a home reversion scheme is an alternative. This involves selling your property to a home reversion company. The company gives a cash lump sum and allows you to live in it for the rest of your life. The amount they give however, is less than the full market value.


Selling your home and moving to a smaller property is another alternative.


Are there disadvantages to equity release mortgages?

There are and some of the disadvantages are listed below. This is only meant to be a guide, however, and is not exhaustive

As interest is added to the loan the amount outstanding can rise significantly. This can reduce the amount you eventually leave for your children or family.

The amounts raised can affect your entitlement to state benefits and your tax situation.


If I want advice on an equity release mortgage, what should I do?


Equity release mortgages, their advantages and disadvantages need careful consideration. We strongly advise you take impartial advice for a suitably qualified adviser. 


We would be happy to provide this for you. Call in confidence   

01244 566526

As our overheads in Chester are low, we can offer highly competitive fees. We charge a flat fee of £375*. We feel we can offer you considerable savings compared to other advisers

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Read Our Latest Equity Release Blog Comments !

Over one third of over-55s still have a mortgage


A study by Bower Retirement Solutions has highlighted the growing need for more retirement lending solutions.

Read the full Article Here >

Equity Release market continuing to grow?


Well that’s what Equity Release lender Just Retirement predicts!

Read the full Article Here >

The FCA Relaxes affordability tests for some equity release clients

The Financial Conduct Authority is considering allowing lifetime mortgage lenders to remove affordability tests for equity release borrowers on interest only loans that can be converted  to roll-up mortgages at some time in the future

Read the full Article Here >

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A lifetime mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up the repayments on your mortgage or any other loan secure on it.

Typically, our equity release fees may be £375. £75 is paid on application and the balance on completion.