Call us
01242 697821

Blogs

Keep up to date with the latest news and our guides on all things mortgages. 

Equity Release: Unleashing the Potential of Your Home's Equity

Equity release has gained popularity among homeowners who are in their retirement years and wish to access the equity in their home without having to sell it. The cost of living continues to increase, and inflation has hit double digits, making equity release a valuable solution for supplementing retirement income. According to a recent study*, around £3.3bn of the total £5.58bn released in 2022 was used to repay unsecured or secured debt as new customers focused on strengthening their finances as rising interest rates and inflation ate into retirement budgets.

Let's take a closer look at some of the most common uses of equity release:

Home Improvements

One of the most popular reasons for using equity release is to fund home improvements. This can range from small cosmetic updates to larger renovation projects. By using the equity in their home, homeowners can make the necessary updates to their property without having to take out a loan or deplete their retirement savings.

Gifting

Equity release can also be used for gifting to family members. This can be to help children with a down payment on a house or to provide financial support to aging parents. By accessing the equity in their home, homeowners can gift money to their loved ones without having to dip into their retirement savings.

Debt Repayment

Debt repayment is another common use of equity release. With customers focusing on debt repayment during the year spending on other uses of equity release fell – around 20% of customers used some or all of their property wealth to gift money to relatives compared with 21% the year before. By accessing the equity in their home, homeowners can use the money to pay off debts, such as credit cards or personal loans, and reduce their monthly outgoings. This can provide much-needed financial relief and help them manage their finances more effectively.

Supplementing Retirement Income

Finally, many homeowners use equity release to supplement their retirement income. With the cost of living continuing to rise and pension funds not always providing enough income to meet the needs of retirees, equity release can provide a valuable source of supplementary income. By accessing the equity in their home, retirees can maintain their standard of living and continue to enjoy their golden years.

Equity release is a valuable financial solution for many homeowners who have reached retirement age and want to access the wealth tied up in their property. With its ability to fund home improvements, gift money to family members, repay debts, and supplement retirement income, it's no wonder that equity release has become a popular solution for many retirees.

SPEAK TO AN ADVISER

*Key Market Monitor Q4 2022 Report

This is a lifetime mortgage. To understand the features and risks, 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.

Related

Equity Release and your bill busting options

Equity Release and your bill busting options

As we approach the winter months, it inevitably gets colder and we’re all looking for ways to keep ...

Read More >
Top five insurance policies to take out

Top five insurance policies to take out

Part of our ‘stay safe and stay smart’ campaign naturally includes insurance. With the cost of liv...

Read More >
A wedding of a lifetime, covered by equity release

A wedding of a lifetime, covered by equity release

Did you know you can use equity release for gifting? Also known as a lifetime mortgage, you can help...

Read More >
Can I get a mortgage if I’m self-employed? Plus other commonly asked employment questions

Can I get a mortgage if I’m self-employed? Plus other commonly asked employment questions

Work habits in the UK continue to evolve and change. And so, the mortgage industry is addressing con...

Read More >
Myth busting: home insurance

Myth busting: home insurance

When it comes to home insurance, there are a lot of misconceptions that can lead homeowners to make ...

Read More >
Why millennials should care about general insurance: planning for the future

Why millennials should care about general insurance: planning for the future

In a world where the future is uncertain, one thing remains constant: the need for protection. For t...

Read More >

What our clients say...

Latest Blog

How can a critical illness insurance policy help

Did you know that critical illness insurance can provide an extra security net? Waiting times for el...
Read More

Avoid NHS waiting times with private medical insurance

Did you know private health insurance can provide an essential safety net? You’ll be able to access...
Read More

Using Equity Release for Home Improvements or Care Needs

As you approach the ‘Golden Years’, are you considering whether to stay at home or move into care?...
Read More

Insuring a Heritage Property? What You Need to Know

There is a lot of love for those beautiful older houses, from the Tudor era to the popular Edwardian...
Read More

Remortgaging This Year? Fixed vs Variable Rates

Do you hold one of the fixed rate COVID-era mortgages coming to an end this year? Unfortunately, the...
Read More

How to restart your budget ahead of summer!

With the sun on our faces and the right approach to your end-of-summer spending, you can achieve you...
Read More

How to stay active through summer! (and how health insurance can help)

With the warmer weather approaching, it’s a great time to get active without hitting the gym! We’v...
Read More

What protection do you need in place to have a worry-free summer?

Summer’s here—time for garden BBQs, beach escapes, and maybe even a cheeky weekend away. But while...
Read More

Avoid these mistakes when buying insurance

General insurance—whether it’s for your car, home, travel, or health—is a crucial financial safet...
Read More

How to use equity release for a new garden renovation or a dream holiday

Using equity release to fund a garden renovation or a dream holiday can be a smart move if done wise...
Read More


Fairview Financial Ltd is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Fairview Financial Ltd is registered in England and Wales no: 10912424. Registered office: 107 Promenade, Cheltenham, GL50 1NW.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

@ 2020 by Fairview Financial

Our Fees        

A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Our standard fee for mortgages is £395 and this is paid when the mortgage is offered. We charge a fee of £295 First-Time Buyers. Other fees may apply depending on the complexity of the work involved or loan amount. The maximum fee we can charge is £795.

Our standard fee for Equity Release is £895 and this is paid on completion.

We also receive a commission from the lender that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed. If we receive a commission, this will not affect the cost payable by you.

THINK CAREFULLY ABOUT SECURING OTHER DEBTS AGAINST YOUR HOME.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

EQUITY RELEASE: 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.


  • Back to top