What is equity release?

Equity release works by allowing you to access some of your home’s value, tax-free.

Is equity release for me?

If you’re a homeowner aged 55+ and looking for ways to release some funds in your later life, perhaps to fulfil some long-held dreams, or to renovate your home, equity release might be for you.

The most common type of equity release product is a Lifetime Mortgage, though other types of later life lending also allow you to take advantage of your home’s value. The Royal London Later Life Lending Service is provided by Responsible Life and allows you to consider the available options.

The equity release calculator provided by Responsible Life can give you an estimate of how much you could release from your home. You get an estimate in minutes, plus a guide to equity release.

Releasing equity with a Lifetime Mortgage

Lifetime Mortgages can largely be grouped into two:

Lump Sum Lifetime Mortgages

A Lump Sum Lifetime Mortgage lets you release equity from your home in one lump sum of money.

You don't need to make any payments, so the interest will be added to the mortgage monthly and 'roll-up' over time.

Drawdown Lifetime Mortgages

A Drawdown Lifetime Mortgage lets you release an initial amount of money, while also creating a reserve account of further funds.

Interest is only added to the amount you access - the reserve is interest-free until you draw down from it.

Want to know which could be the right one for you?

Call 0800 023 9311 for more information. Royal London have chosen Responsible Life to provide our customers with advice on Later Life Lending products. They are specialists who help customers aged 55+ release money from their homes. When you call, their Information Team will discuss your options and, should you wish to progress, connect you to one of their equity release advisers. If you have an existing financial adviser then it's always best to talk to them first.

Why release equity with a Lifetime Mortgage?

Tax-free cash from your home

No Negative Equity Guarantee (NNEG) – so you can never owe more than the value of your home

You don’t have to move out – your home remains yours

This is a Lifetime Mortgage which could reduce the value of your estate and affect your entitlement to means-tested benefits. To understand the features and risks, ask your Responsible Life adviser for a personalised illustration.

How does equity release work?

You borrow against the value of your home with an equity release product

You still retain full ownership of your home, so can live in the property for the rest of your life – if you want

You repay through the sale of your home when you die or when you move into long-term residential care - you will never owe more than the value of your home.

telephone

Do I qualify for equity release?

Releasing equity with a Lifetime Mortgage could be the right choice for you if you:

  • are over 55
  • want to borrow at least £10,000
  • own your home and it’s worth at least £70,000
  • are able to clear any existing mortgage on the property, either using the equity released or additional funds. Clearing an existing mortgage is one of the most common reasons to release equity

Use the equity release calculator to see an estimate of the cash you could get.

Frequently asked questions about equity release

No. You borrow against your home, not sell it.

The amount you owe is paid back after the last homeowner dies or enters residential care. Usually this is done with the sale of the home.

There are no requirements to make regular monthly payments - unless you choose to make them.

No, you can’t. Our partner, Responsible Life, will only advise on Lifetime Mortgages from lenders who are members of the Equity Release Council. Because of this, they will all come with certain product features. One of these, the No-Negative Equity Guarantee (NNEG), ensures you’ll never owe more than your home’s value.

The Equity Release Council are a consumer centric trade body. They promote high standards of conduct and practice in the equity release market.

All financial products have an element of risk. Responsible Life will only recommend Lifetime Mortgages from lenders who are members of the Equity Release Council.

Lifetime Mortgages are also fully regulated by the Financial Conduct Authority (FCA).

No. You borrow against your home, not sell it.

The amount you owe is paid back after the last homeowner dies or enters residential care. Usually this is done with the sale of the home.

There are no requirements to make regular monthly payments - unless you choose to make them.

No, you can’t. Our partner, Responsible Life, will only advise on Lifetime Mortgages from lenders who are members of the Equity Release Council. Because of this, they will all come with certain product features. One of these, the No-Negative Equity Guarantee (NNEG), ensures you’ll never owe more than your home’s value.

The Equity Release Council are a consumer centric trade body. They promote high standards of conduct and practice in the equity release market.

All financial products have an element of risk. Responsible Life will only recommend Lifetime Mortgages from lenders who are members of the Equity Release Council.

Lifetime Mortgages are also fully regulated by the Financial Conduct Authority (FCA).

Not sure if a Lifetime Mortgage is for you? There are other types of later life mortgages you could consider instead.

Retirement Interest-Only Mortgage (RIO)

Works the same way as a traditional interest-only mortgage in that you only pay the interest and the amount you owe stays the same. Unlike a traditional interest-only mortgage a RIO does not have a set repayment date. Repayment is required when you move into care or die, and is usually achieved with the sale of the home.

 

Traditional mortgage

There are some traditional capital repayment and interest-only mortgages that could also be suitable for older homeowners. These do have to be repaid in your lifetime and you have to pass affordability and credit checks.

Call Responsible Life on 0800 023 9311. They will discuss your options and connect you to one of their equity release advisers, who can help decide on the right choice for you.

Begin your journey today

Get an estimate of how much you may be able to release from your home with the equity release calculator. It only takes a few moments and you get a free guide to equity release.

Got a question? The Responsible Life team are here to help

0800 023 9311

Free from UK landlines and mobiles

Mon to Fri: 9am-8pm. Sat: 9am-5pm.

Royal London have chosen Responsible Life to provide our customers with advice on Later Life Lending products. Responsible Life are not part of the Royal London Group.

Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/) under reference 610205.

If you choose a mortgage with required repayments during your lifetime then your home may be repossessed if you do not keep up with the payments. A Lifetime Mortgage may impact the value of your estate and could affect your entitlement to means tested benefits. Think carefully before securing other debts against your home.

To understand the features and risks, ask for a Personalised Illustration. Responsible Life’s adviser will talk through the setting up costs of a mortgage before you make any decision to proceed. Only if you choose to proceed and your case completes will Responsible Life charge an advice fee, currently not exceeding £1,490.

If you take out a product recommended by Responsible Life, Royal London Marketing Limited will receive a fee, for this introduction. If you would like further details about this fee, Responsible Life will be able to provide you with this. More information about Responsible Life and how your information is processed is available on their privacy notice. Find out how Royal London manages your personal data.

Royal London Marketing Limited is authorised and regulated by the Financial Conduct Authority, registration number 302391. Registered in England and Wales number 4414137.

Responsible Life's registered office is: Unit 8, ABC Killinghall Stone Quarry, Ripon Road, Harrogate, HG3 2BA. Registered in England & Wales. Company number 7162252.