January is often a time for reflection and forward planning. For homeowners in later life, it can also be an opportunity to review how their property fits into their overall financial picture. Equity release is one option that can form part of this broader conversation, particularly when looking to rebalance income, reduce financial pressure or plan more confidently for the years ahead.
Equity release allows eligible homeowners to access some of the value tied up in their home while continuing to live there. While it isn’t suitable for everyone, it can provide flexibility when used carefully and with proper advice.
When equity release is commonly considered
Many people explore equity release to supplement retirement income, manage rising living costs, repay existing borrowing, fund home improvements, or support family members. It’s important to understand that equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. For this reason, it should always be considered alongside alternative options such as downsizing, using savings, or remortgaging where appropriate.
A practical equity release checklist
Before deciding whether equity release could be right for you, it helps to step through some key considerations:
- Your age and property type meet typical lender criteria
- You have a clear idea of how the funds would be used
- You understand how interest is added over time
- You’ve considered how this may affect inheritance plans
- You’ve explored other ways of raising funds
- You’re comfortable discussing the decision with family
- Independent legal advice will be taken as part of the process
Taking time to review these points can help ensure any decision is made with clarity and confidence.
Equity release as part of a wider financial plan
Modern equity release products are more flexible than many people expect, with features such as voluntary repayments and inheritance protection available on some plans. However, product features, costs and long-term implications can vary significantly.
A review doesn’t mean committing to a plan. Often, it simply helps homeowners understand whether equity release could play a role now or in the future, or whether another option may be more suitable.
If one of your goals this year is to feel more organised and in control of your finances, a conversation about how your home fits into that plan can be a valuable step. Give us a call today to find out how we can help you understand the implications and decide what feels right for your circumstances.
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
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