Equity Release
Access Tax-Free Cash from Your Home
Investing in your own home is one of the most significant and rewarding financial decisions you can make. However, as property values have surged over the past three decades, many find themselves in a situation where their wealth is tied up in their homes, leaving them feeling financially constrained, especially as they approach retirement. This is where the concept of a lifetime mortgage comes into play, offering one of the most popular equity release options available. These products are designed to empower homeowners aged between 55 and 95 to unlock the value held within their properties, all while retaining the comfort of staying in their current homes without the need to relocate (This service is offered via referral to a third party).
The funds released from your property can serve a variety of purposes, from financing home improvements and embarking on dream vacations to debt consolidation for peace of mind. Additionally, it can be viewed as an early inheritance gift to your loved ones.
Understanding Lifetime Mortgages
The most prevalent form of equity release plan is the lifetime mortgage, which caters to homeowners aged between 55 and 95, granting them access to tax-free cash tied up in their homes. Over the years of property ownership, your home is likely to have accrued substantial equity, especially given the significant rise in house prices over the last two decades. Traditionally, individuals would sell their homes and downsize to access this equity, but an increasing number of people over 55 are now turning to lifetime mortgages as a means to remain in the homes they cherish.
Eligibility Criteria
To be eligible for equity release, you must meet certain criteria:
- Aged between 55 and 95
- UK residence as your main residence
- Property value exceeds £70,000
Choosing the Right Plan for You
There are two primary types of lifetime mortgages:
Lump Sum:
This product secures a tax-free lump sum against your home, typically without requiring monthly repayments. Interest is compounded and settled when the property is sold. The amount you can release, ranging from 10% to 55.5% of your property's value, depends on factors like your age, health, and lifestyle.
Drawdown:
Similar to lump sum products, drawdown lifetime mortgages offer greater flexibility. After an initial release, you can withdraw funds in stages, with interest accumulating only on the amount released, resulting in slower growth of your overall debt.
Tailoring Your Plan
Within both lump sum and drawdown lifetime mortgages, you can opt for specific plan features to align with your circumstances:
- Capital Repayment Plans: Allowing voluntary ad hoc repayments, up to 15% of the borrowed amount annually, without incurring early repayment charges.
- Enhanced Plans: Potential for increased loan-to-value rates if you have certain health conditions or lifestyle choices like smoking.
- Interest Payment Plans: Option to make monthly interest payments, potentially reducing the final amount due, with the ability to adjust the plan as your circumstances change.
- Downsizing Protection Plans: The flexibility to repay the loan if you decide to move after five years, with the possibility of transferring the plan to your new property if it meets lender criteria.
- Income Plans: A combination of an initial tax-free lump sum and subsequent tax-free monthly income for a fixed term. Inheritance Protection Plans: Ensuring a percentage of your home's value is preserved as an inheritance, regardless of accrued interest.
Determining Your Equity Release Amount
The amount of equity you can release depends on factors such as your age, property value, and health and lifestyle. Generally, older individuals can release more equity. On average, lump sum lifetime mortgages unlock around £133,770, while those opting for drawdown typically access an initial sum of approximately £88,340.
Consideration for House Prices
The value of your home can significantly impact potential inheritances. With the consistent rise in UK house prices over the last two decades, taking out a lifetime mortgage may result in accumulating more equity even after repaying the plan. However, if house prices fall, your inheritance may be reduced. Consulting with a specialist adviser can help you evaluate the best options, including plans with guarantees to prevent negative equity (This service is offered via referral to a third party).
A Step-by-Step Guide to the Lifetime Mortgage Process
- Speak to an Adviser: Begin by consulting a qualified equity release adviser who will address all your questions, assess your circumstances, and provide essential information to guide your decision-making (This service is offered via referral to a third party).
- Research the Market: Your adviser will conduct market research to identify the most suitable plans for you. Recommendations will be communicated through phone and in writing, accompanied by a personalized report. If you decide to proceed, your application will be processed, and a surveyor will evaluate your property.
- Receive an Offer: Following this, you will receive an offer from your chosen provider, detailing all terms and conditions. Release of Funds: The entire process, from application to the release of funds, typically takes between eight to ten weeks.
Why Choose Yes Financial?
As a member of the Equity Release Council, we exclusively recommend plans approved by this organization. Our endorsed plans ensure that you can continue residing in your home, move without facing financial penalties, and never accumulate debt exceeding your home's value.
We understand that equity release and lifetime mortgages are significant decisions. We offer 100% impartial advice, guaranteed low customer fees, exclusive offers from leading providers, and a dedicated specialist adviser who will guide you through the entire process.
For further information, reach out to one of our expert advisers today. Call us at freephone 01268 206226, available Monday to Friday between 9 am and 7 pm. (This service is offered via referral to a third party).
FAQs
Frequently asked questions
- Amount you wish to borrow
- Size of your deposit
- Employment status and income
- Credit rating
- Outgoings
- Existing debt
- Your age
- Length of the mortgage term
- Your credit status
- If you are applying solely or jointly
- Check that you are on the electoral roll
- Always pay your bills on time and in full
- Close any credit accounts you have for stores or catalogues and no longer use
- Consider applying for a credit builder credit card, to help show lenders that you can manage money responsibly
- Guarantor loans can also improve your credit score, if you keep on top of your repayments
- Regularly check your credit report to make sure that all the information is correct. If any of the details are incorrect, contact the relevant lender and ask for these to be amended.
01 What is a mortgage?
A mortgage is a loan from a bank or building society that enables you to purchase property. The loan is repaid with interest over a number of years, with the term for doing this dependent on your personal financial circumstances.
A mortgage can be held by an individual or jointly between one or more people, but if you do not keep up your repayments, your home could be repossessed by the lender.
02 Will I be accepted for a mortgage?
All mortgage lenders have their own criteria. The following factors all play a part in determining their mortgage offer and how much they are willing to lend to you:
In order to be accepted, you need to convince lenders that you are able to repay your mortgage. To do this, lenders typically use your credit report to check your repayment history. Your credit file will contain current and existing records on items such as credit cards, loans, overdrafts, mortgages, mobile phone/s, some utility payments and all accounts opened in the past six years. If you have had arrears, defaults, CCJs, debt management plans or previously been made bankrupt, there are mortgage options available which we can help you with.
03 How does the mortgage application process work?
To get a mortgage, you will need to save a deposit of at least 5%. However, the more you can save, the better your rate will usually be. If you already own your own home, you can use the equity in your property for this. Our expert mortgage advisors can talk you through the benefits and the difference in your monthly payments by increasing your deposit.
Once you have found the property you want to buy, our mortgage advisors will assess your personal needs and circumstances and recommend a mortgage product that is right for you. They will compare hundreds of mortgage quotes, including a number of exclusive products that cannot be found on the high street or comparison sites, and ensure that you get the right deal at a great price.
If you are happy with the mortgage product your advisor recommends, you will pay an upfront fee to receive your Agreement in Principle (AIP). This will give you an approximate sum of how much the lender is willing to let you borrow, and enable you to put an offer in on your dream home.
If your offer is accepted, you will need to appoint a solicitor to handle searches, surveys and contracts, which we can arrange for you. We handle the entire mortgage application process through to completion, liaising with your solicitor and lender to ensure that your application is a success.
If you are looking to remortgage, then we recommend looking for a new mortgage deal around 3 months before your current deal expires. Starting early will give you plenty of time to compare all the available mortgage products and submit your application. If your mortgage is approved early there's no need to panic, as we will ensure that the completion date corresponds with your current deal's end date.
04 How much can I afford to borrow?
Most mortgage lenders will lend you up to five times your salary. However, this is dependent on a number of factors including your age, number of dependants and current financial commitments. Lenders generally work out how much they will lend you based on what you can realistically afford each month after you have paid your bills, credit cards, loans etc.
Our mortgage advisors can help you understand how much you can realistically borrow before an application or credit search is completed, by assessing your individual needs and circumstances. If you choose to proceed with an application, then our advisors will know which mortgage lenders to approach to ensure you get the required loan amount.
05 How much deposit will I need?
To buy a home with a mortgage, you will need to save a deposit of at least 5%. The more you can save, the better your mortgage rate will be.
If you already own a home, you can use the equity from your property for the deposit
Our professional mortgage advisors are experts on all the various mortgage deals available and can help you decide which mortgage deal best fits your needs.
06 How much does a mortgage cost?
The amount you pay each month is dependent on the total cost of your property and the type of mortgage you have. The costs you may need to pay vary but typically include:
Interest: Accrues across the lifetime of the mortgage and is charged as a percentage rate on the amount you owe.
Mortgage fees: A product fee which is charged for taking out the mortgage.
Application fees: Charged on application, regardless of whether you take out the mortgage.
Valuation fees: Can be charged by lenders for calculating how much your home is worth.
Higher lending charges: Can be applied to mortgages that have a small deposit.
**Telegraphic transfer fees: **Charged by the bank for arranging to transfer the money they are lending you (usually to your solicitor).
**Broker fees: **Often charged if you use a broker to arrange your mortgage.
**Early repayment charges: **Can be charged if you repay your mortgage before the end of the agreed term.
**Exit fees: **Lenders can charge these if you move to a new lender.
**Missed payments: **These can be charged by your lender if you fail to keep up your repayments, which can increase the total amount you owe.
07 Can I get a mortgage with bad credit?
If you have a history of bad credit including; arrears, defaults, county court judgements (CCJs), debt management plans or bankruptcy, there are still mortgage options available. Your choice of mortgage lender and type of mortgage will however be limited, and the rate of interest will be higher than someone who has a good credit rating. Our expert mortgage advisors are in regular contact with adverse mortgage lenders and are well placed to advise you on all your available options.
08 How long does it take to get a mortgage?
Getting a mortgage application approved is dependant on you, your mortgage advisor, solicitor and lender. At Yes, we handle the entire process for you through to completion, communicating with your solicitor and lender to remove the stress and hassle from you and ensure that your application is a success. Having all the relevant mortgage documentation to hand ready for your mortgage advisor, will also help speed up the process.
09 How can i improve my poor credit rating?
To improve your bad credit rating, there are a few things you can do to possibly increase your chances of being approved for a bad credit mortgage:
Making these changes should help improve your credit score, but it will not happen overnight, especially if you have a history of bad credit or have missed multiple payments.
Get started
3 simple steps
-
{ 01 }
Tell Us a Bit About You
Fill in the short form or request a call.
It only takes a minute, and it gives us a starting point to understand your situation.
-
{ 02 }
Speak to Your Advisor
We’ll have a quick, friendly chat to understand what you’re trying to do.
No pressure, no commitment — just clear answers on what’s possible.
-
{ 03 }
We Handle Everything
If you’re happy to move forward, we’ll take care of the process for you.
From finding the right lender to getting your mortgage approved — we’ll guide you all the way through.
Clients we’ve helped
What our customers say
-
Prepare for the End of Your Fixed-Rate Mortgage
13 May 2026
-
-
-
Understanding Right to Buy Mortgages
3 Apr 2026
