Who Is Eligible For Equity Release?
When you reach a certain age, mortgages can become a little harder to come by. However, equity release is a type of mortgage specially designed for the older generations. It allows you to secure a loan against the value of your property to spend on whatever you like – investments, retirement plans, or even children and grandchildren.
Whether you want a home reversion plan or lifetime mortgage*, we’re listing who is eligible for equity release in this helpful guide.
Who is eligible for equity release?
Here are a few eligibility criteria to help you determine whether equity release is the right option for you:
- Over 55s
Equity release is exclusively packaged for 55s and over, so if you’re under 55, unfortunately you’re not eligible.
The age threshold is even higher for home reversion plans, which requires you and any mortgage partner to be at least 65 years old.
- UK property owner
You must be a UK property owner and this must be your primary residence. So, if your main residence is abroad and your UK property is only used as a holiday home, then you won’t be able to qualify for equity release.
- Affordability criteria
As with any mortgage, there will be affordability criteria. If you have any outstanding mortgage payments, this will also be taken into account. Interest rates tend to be higher for equity release, so if you are paying interest on your loan, lenders will need to check that you can comfortably afford these payments.
- Condition of your property
The value of your property is particularly important for equity release, as the loan amount is secured against the value of your home. This means potential lenders will scrutinise the condition of your property and determine whether you are a responsible homeowner who will take care of the property. It’s important that your home is kept in a good state of repair to avoid any decreases in value.
This guide is a quick way to establish if you’re eligible for equity release.
Now that you know whether you can apply or not, speak to a mortgage advisor today. At Agentis we are a family-run broker that offers the personal touch whilst finding you the best equity release plan for your circumstances. We understand that you’ll probably have a lot of questions, and our expert team will be more than happy to help. Contact us to learn more.
You can also browse our equity release FAQs to find out more.
*Please note that Agentis is unable to provide advice on home reversion plans.
*A lifetime mortgage is a long term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.
