Equity Release Basics

[Puglia]

Hi,

I'm an adviser specialising in equity release and occasionally see related questions posted on my Google alerts.

As the market is quiet, I thought it may be helpful to offer some basic guidance, no personalised advice, the information you could find online but all in one thread.

I'm not selling anything and am happy to provide verification of my qualifications and ERC membership to Mumsnet, if required.

Equity release isn't right for everyone, but can be a great solution for some people who don't want to downsize.

Please post any questions and I'll answer as soon as I can.

Borrowers also receive an annual mortgage statement
Ahh, thank you @Puglia , they know fine well what the score is then!

I was wondering if you could advise the best way of releasing equity from our home or whether we’d be better off taking out a personal loan for home improvements?

I’m 54, husband 52. Own our property out right, no mortgage. Bought for around £55K, currently valued at around £170K.

We have lots to do around the home and it would be ideal if we could do this as cheaply and risk free as possible. Any suggestions greatly received.

Hi,

I'd suggest a personal loan. Minimal set up costs and you'll repay in an agreed time and know the cost.

If a personal loan isn't sufficient, a standard mortgage is another option, depending upon how much you wish to raise.

Compare the total costs and see what's affordable.

I am 38 and my husband is 40. We bought our house for £350k 6 years ago. From a Zoopla estimate and from houses sold on our road, the house is now worth approx £550k.

We want to go into property investment perhaps buy a fixer upper and sell or rent out. We don't have money for a deposit and are due to remortgage in Feb 2025.

Could we release the equity in the house to use as a deposit for the investment property? Also what are the pros and cons for doing so? Is there an alternative?

We have £279k left on the mortgage