Equity Release & Lifetime Mortgages
Unlock the value in your home without selling, specialist advice for the over-55s.
Equity Release & Lifetime Mortgages
For homeowners aged 55 and over, equity release offers a way to access the wealth tied up in your property without selling it or making monthly repayments. It is not the right solution for everyone, but for those who need to supplement retirement income, fund later-life care, help children onto the property ladder, or clear an interest-only mortgage that has matured, it can be a powerful and flexible tool.
Doulton Bridging Finance provides independent equity release advice across the whole of the market. We are not tied to any single provider and our brokers will present all available options, including whether equity release is the right choice at all, before recommending a product.
A significant long-term commitment
Equity release is a significant long-term financial commitment. It will reduce the value of your estate and may affect your entitlement to means-tested benefits.
We always recommend that clients discuss equity release with their family and a solicitor before proceeding. All our advice is provided on an independent, whole-of-market basis.
What is equity release?
Equity release is an umbrella term for financial products that allow homeowners aged 55 or over to access a lump sum or regular income from the equity in their home, without selling it or making monthly repayments. The most common form is the lifetime mortgage.
Lifetime mortgage
A loan secured against your home. Interest rolls up (compounds) over time and is repaid, along with the original loan, when the property is sold, typically on death or when you move into long-term care. Lifetime mortgages from Equity Release Council-approved providers include a no-negative-equity guarantee, meaning you can never owe more than your home is worth.
Home reversion plan
You sell a percentage of your home to a provider in exchange for a lump sum or income, while retaining the right to live there rent-free for life. When the property is sold, the provider takes its percentage of the sale proceeds. Home reversion plans are less common than lifetime mortgages and are generally only appropriate in specific circumstances. Our advisers will explain when one might be relevant to your situation.
Features available on modern lifetime mortgages
- Drawdown facilities, take the money in stages rather than a single lump sum, reducing the interest that rolls up
- Voluntary repayments, make payments of up to 10% of the outstanding balance per year without penalty
- Protected equity, ring-fence a percentage of your property's value to leave to your estate
- Fixed interest rates, the majority of lifetime mortgages are fixed for life, giving certainty
- Joint borrower products, available for couples, with protection continuing until the second borrower dies or moves into care
Who equity release is suitable for
- Retirement income supplement
- Homeowners whose pension income is insufficient for their lifestyle who want to access their property wealth without downsizing or selling.
- Interest-only mortgage maturity
- Homeowners who took an interest-only mortgage in the 1990s or 2000s that has now matured and who cannot repay the capital. A lifetime mortgage can repay the interest-only facility and remove the monthly payment obligation.
- Later-life care funding
- Funding home adaptations, home care, or residential care costs. Equity release can provide the capital needed without liquidating other investments.
- Family gifting
- Helping adult children with house deposits or other financial needs while remaining in your home. Also known as a 'living inheritance'.
- Debt consolidation
- Clearing unsecured debts or a maturing interest-only mortgage, reducing monthly financial commitments in retirement.
- Property improvement
- Funding works to the property, extension, adaptation for mobility needs, energy efficiency improvements, that improve both quality of life and property value.
Eligibility criteria
- Minimum age 55 (some providers 60). For joint applications, the younger borrower must meet the minimum age.
- Property must be your main residence (some providers accept second homes for holiday let equity release).
- Minimum property value typically £70,000-£100,000 depending on provider.
- Property must be in the UK, built of standard construction, and in reasonable condition.
- No minimum income requirement for lifetime mortgages, affordability is not assessed as there are no monthly payments.
- Credit history is not a disqualifying factor for most lifetime mortgage providers.
How much can I release?
The maximum loan increases with age because the lender's exposure period (the expected time before the property is sold) shortens. Health conditions that reduce life expectancy can also increase the maximum loan, known as enhanced lifetime mortgages.
- Age 55
- Typically 20-28% of property value
- Age 60
- Typically 25-35% of property value
- Age 65
- Typically 30-40% of property value
- Age 70
- Typically 35-47% of property value
- Age 75
- Typically 40-52% of property value
- Age 80+
- Typically 45-55% of property value
Case study: interest-only mortgage redeemed, no monthly payments
- Borrower
- Retired couple, ages 72 and 68, Sussex
- Property value
- £585,000 (owned outright except for maturing mortgage)
- Problem
- £187,000 interest-only mortgage matured. Pension income insufficient to remortgage on a repayment basis. Children did not want parents to sell the family home.
- Equity release arranged
- Lifetime mortgage of £197,000 (including arrangement costs)
- Rate
- 5.20% fixed for life (rolled up, no monthly payments)
- Protected equity
- 30% of property value ring-fenced for estate
Interest-only mortgage cleared. No monthly payments. The couple remain in their home, and the protected equity ensures a meaningful inheritance.
Frequently asked questions
Will I still own my home if I take out a lifetime mortgage?
Yes. A lifetime mortgage is a loan secured against your home, you remain the legal owner throughout. The lender has a legal charge (mortgage) over the property and is repaid from the sale proceeds when you die or move into long-term care. A home reversion plan is different, under that structure you sell a percentage of the property, but most equity release is via lifetime mortgages.
Can I still leave my home to my children?
Yes. Many lifetime mortgage products include a protected equity feature, allowing you to ring-fence a percentage of the property's value, typically 20-50%, to leave to your estate. The lender can only reclaim from the unprotected portion. You can also make voluntary repayments of up to 10% per year without penalty, which reduces the amount owed at the point of sale.
What happens if house prices fall?
All lifetime mortgages from Equity Release Council members include a no-negative-equity guarantee. This means that even if your property value falls and the rolled-up loan exceeds the sale proceeds, your estate will never owe more than the property realises. The lender absorbs the shortfall.
Can I take equity release if I already have a mortgage?
Yes, if the equity release loan is large enough to repay the existing mortgage as part of the facility. The lifetime mortgage provider will require any existing charge to be cleared at completion. Many clients use equity release specifically to clear a maturing interest-only mortgage and remove the monthly payment obligation.
How does equity release affect benefits?
A lump sum from equity release may affect means-tested benefits if it exceeds the savings threshold for those benefits (currently £6,000 for Pension Credit). We strongly recommend discussing this with a benefits adviser before proceeding. If you take a drawdown rather than a lump sum, you can manage how much cash is held at any one time.
Get an indicative quote
Tell us your scenario and we will come back the same working day with indicative terms and a lender shortlist.
Speak to an equity release adviser
Our equity release advisers are independent and access the whole of the Equity Release Council-approved market. We will compare all available products, explain the alternatives to equity release, and ensure you have all the information needed to make an informed decision.