What is equity release?
Equity release is designed for homeowners aged 55 and over, allowing them to access the value built up in their property without needing to sell or move out.
The money released is tax-free and can be used for a range of purposes, such as boosting retirement income, paying off debts, or helping family members financially.
The most common type of equity release is a lifetime mortgage in Scunthorpe. This is a loan secured against your home, with interest typically added to the loan each year.
Repayments are not usually required until you pass away or move into long-term care. The full loan amount, plus any interest accrued, is then repaid from the sale of the property.
Equity release is not a one-size-fits-all solution and should be considered carefully. It may reduce the amount of inheritance you leave behind and could affect your entitlement to means-tested benefits.
For the right person, it can be a practical and flexible way to make use of the wealth stored in their home.
How to release equity from your home?
If you’ve owned your property for several years, there’s a good chance it has increased in value.
Equity release allows homeowners to unlock some of that value without needing to sell or move.
This is often done through a lifetime mortgage, which allows money to be borrowed against the property, with the loan repaid at a later stage, usually when the home is sold after the owner has passed away or moved into long-term care.
Releasing equity is a regulated process designed to ensure homeowners fully understand what they’re agreeing to and that it suits their circumstances.
It begins with a detailed conversation about your financial situation, plans, and what you’re hoping to achieve.
This helps us to establish whether equity release is the right option, or whether there may be alternative routes worth exploring, such as downsizing or switching to a different type of mortgage.
The amount of equity that can be released depends on a range of factors, including the property’s value, the homeowner’s age, and the provider’s lending criteria.
Interest is typically added to the loan each year, although some products offer the flexibility to make voluntary payments if preferred.
Choosing to release equity is a big decision, and one that should always be made with the benefit of tailored advice and a full understanding of the long-term implications. With the right support, many homeowners find that it offers the financial flexibility they need in later life.
Why release equity from your home in Scunthorpe?
Releasing equity is a significant financial decision, and people in Scunthorpe consider it for a wide range of reasons:
Supporting Retirement
Many customers use equity release to top up their pension income, giving them more flexibility and financial peace of mind.
Helping Family
It’s becoming more common for parents and grandparents to release equity to help children or grandchildren get onto the property ladder.
Home improvements
Making changes to your home, such as fitting a new kitchen, creating a more accessible living space, or enhancing energy efficiency, can all be funded through equity release.
Debt Consolidation
For some, releasing equity helps pay off unsecured debts, such as credit cards or personal loans, reducing monthly outgoings.
Lifestyle funding
Whether it’s travel, a new car, or simply enjoying more from day-to-day life, many choose to access equity for personal enjoyment and comfort.
Releasing equity offers flexibility and control, but it’s essential to consider the impact it may have on future financial planning, especially regarding inheritance and benefits.
How can we help as a mortgage broker in Scunthorpe?
A mortgage broker in Scunthorpe, like ourselves, understands the property market and has access to a wide range of equity release providers.
This ensures that the recommendation you receive is based on your unique circumstances and the full market offering.
Our mortgage advisors in Scunthorpe will explain each step in clear, straightforward language.
They will take time to understand your goals and assess your financial situation before suggesting suitable equity release options.
Where appropriate, they will also explore alternative routes that might better fit your needs, such as retirement interest-only mortgages or downsizing.
Their support continues throughout the process, from your initial enquiry to completion.
This includes working alongside your solicitor, arranging property valuations, and liaising with the lender on your behalf.
Working with a mortgage broker in Scunthorpe like ourselves provides reassurance, transparency, and expertise, helping you feel confident in your decision.
Date Last Edited: June 10, 2025
