If you are looking to compare and find the best equity release mortgage, use our comparison table above to find an equity release mortgage.

When you click "check eligibility" you will be asked to complete an enquiry form. You will then be contacted by a mortgage adviser who will ask about your financial situation and discuss your options.

What is an equity release mortgage?

Equity release means using the value of your home to generate cash or income. It's different from remortgaging and only available to older borrowers.

An equity release mortgage enables you to withdraw money from the value of your home without having to move, sell your property, or in some cases, having to paying back mortgage interest while you are still living in the property.

An equity release mortgage turns the money you have in your property (known as equity) into a cash lump sum or monthly income. It tends to be used by older people (aged 55 and above) who have paid off their mortgage and who want extra money to boost their pension or their standard of living but who don't necessarily want to move out of the family house.

Why is an equity release mortgage useful?

You can use equity release to raise money from the value of your home if you own it yourself and you need extra money but you don't want to move. You can use it to provide:

  • A lump sum

  • A monthly income

What type of equity release mortgage should you choose?

The type of scheme you choose depends on your personal financial circumstances, which is why it is useful to get financial advice as part of the process.

What are the different types of equity release mortgages?

  • Lifetime mortgage: you get a lump sum secured against your home that is paid back when your home is sold. You still own your home, and the amount you owe increases over time as interest is added.

  • Home reversion mortgage: these types of mortgage let you sell all or part of your home to the provider in return for a lump sum or monthly income. You can continue to live in your home rent free for the rest of your life.
    If you want to use a home reversion scheme instead, here is what you need to know about them. You can then compare deals by contacting an independent financial adviser.

Find out more about lifetime mortgages and home reversion schemes to decide which type of deal suits your financial circumstances and what you want from equity release.

What is the best equity release mortgage for me?

If you are wondering which is the best equity release mortgage for your lifestyle, it could be worth speaking to an independent financial adviser could help you decide which scheme to use.

An adviser could also help you work out the risks, costs and benefits of releasing equity from your home and may help you find the cheapest deal.

Will I be eligible for an equity release mortgage?

Most equity release companies require you to:

  • Own your own home, usually with no outstanding mortgage

  • Be 55 years old or more, but some schemes have a higher minimum age

  • Own a home in a good condition

Find out who can use equity release schemes to see if you are eligible.

What should I watch out for with an equity release mortgage?

Everyone's financial circumstances are different, and equity release mortgages are more complex than ordinary mortgages.

When you are comparing deals, watch out for the interest rate - it should be fixed or capped for the lifetime of the loan.

An equity release mortgage should have a "no negative equity guarantee" which means that your family won't have to pay back more than the value of your property after you have died and once the property has been sold.

Check whether the loan allows you to repay some of the interest - it will be less costly in the long run if you can do this.

Find out if there is a minimum sum you can withdraw each month, or a minimum lump sum. This will help you work out the total cost of what you are paying to access your equity.

What is a good equity release interest rate?

You can compare equity release mortgages using our comparison table which lists the monthly interest rate and maximum LTV for every deal. You could also get a quote from an equity release broker, which comes with expert financial advice.

However, equity release mortgages are complex and in order to under the different features and risks of the product you should ask for a quote from a mortgage company that is appropriate to your own financial circumstances.

What are the disadvantages of an equity release mortgage?

Releasing equity from your property means your family will not inherit all of it. Instead the equity release company may end up owning some or all the property.

There are several costs that come with equity release and it can affect the benefits you receive.

If you take out an equity release mortgage at age 55, you may well live until your eighties, which would mean that you incurred a large debt over the years. This is something to consider if you are hoping to pass on your home to your family or heirs.

How do I get equity release advice?

You might be wondering how to find equity release advice. It is best to take advice before you sign up for an equity release mortgage because these are complex products.

You should consider talking to a financial adviser or an equity release broker so that you are clear about the effect that this type of mortgage will have on the equity you hold in your home, and the amount of equity that you will be able to pass onto your family.

How to choose an equity release company

If you do decide to go ahead with equity release, look for schemes that are approved by the Equity Release Council (ERC).

Make sure that the equity release company you use is regulated by the FCA (Financial Conduct Authority) by checking their register.

Releasing equity in your home with a remortgage

You can release equity in your home with a remortgage - but isn't the same as an equity release mortgage.

When you remortgage, you take out a lump sum from your property and pay interest on the amount that is outstanding. You usually have the option to repay the loan in full or make additional repayment contributions.

If you keep up the repayments and pay off your mortgage in full, the mortgage lender has no right to a share in your home under the terms of an ordinary mortgage.

However, remortgaging may not be an option for older people. Have a look at our remortgage comparison page to see the deals that are on offer.

Equity release FAQs

Q

Should I get financial advice?

A

You can get advice and a lifetime mortgage quote from a broker. You can decide what option is best by contacting an independent financial adviser.

Q

What are the alternatives to equity release?

A

You could raise money by moving to a smaller home, or getting a loan. A financial adviser could help you decide.

Q

How much can I get from equity release?

A

This can depend on your age, your property's value, the scheme you use and how much equity you sell.

About our mortgage comparison

Q

Who do we include in this comparison?

A

We include mortgages available through our independent broker, Responsible Equity Release. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.