Equity Release Frequently Asked Questions

We’ve compiled a list of some of the questions we get asked most often and answered them here to help you better understand what’s involved.

Can I release money if I am still paying a mortgage?

  • In many cases the equity release lender will require that they have the only charge that is registered against your property. This will mean that your current mortgage will need to be repaid in full.

What happens if the loan rolls up more that the value of my home? 

  • All plans approved by the Equity Release Council must offer a no negative equity guarantee on an equity release mortgage meaning that the borrower will never owe more than the value of their property.

Do I have to take all the funds at once?

  • You have the option of taking a single lump sum payment or a single initial amount with a drawdown facility that allows future withdrawals.

Am I at risk of losing my home?

  • With all Equity Release Council approved plans you are guaranteed the right to live in your property for the rest of your life.

If I have equity release on my property can I still move home?

  • Similar to a regular mortgage, you are able to port an existing lifetime mortgage to a new home subject to it meeting the lender’s property criteria requirements.

Will releasing effect from my property affect my current welfare benefits?

  • In some cases, release equity could mean that your means tested benefit eligibility is reduced or even lost. An equity release adviser will discuss the potential impacts with you during your meetings and let you know whether you will be affected.

How long will it take to receive the funds released from my property?

  • Whilst timescales cannot be guaranteed, it typically takes 4 – 8 weeks from application to completion, at which point you will receive the funds.

Do I have to make monthly payments to the lender?

  • You are under no contractual obligation to make payments to a lender. Many lenders will allow you the option to make ad-hoc payments should you choose within set limits without incurring additional costs. The loan is not repayable in full until you either pass away of go into long term care.