Who can use their home equity for retirement income?
f you’re a property owner aged 55 or over, you might be able to use equity release to borrow against the value of your home. The money you draw down is tax-free, and you can use it for whatever you’d like, supporting any pension or other income you’re getting.
There are two ways you can release equity from your home, without having to move out of it:
You can take out a lifetime mortgage. Just like any other mortgage, it’s a loan secured against your home. You still own your home and can stay in it for as long as you’d like.
You can take part in a home reversion scheme. That means selling all or part of your property for less than its market value. You stay in your home, but as a tenant.
If you’re looking to release equity through us, we only offer lifetime mortgages. Depending on the product you choose, you can release money and then either:
Make regular interest payments as you go, again just like you would with most other mortgages
Not pay any interest until the whole loan is repaid, which usually happens when you or the last surviving borrower die or move into long-term care.