Could You Benefit From Equity Release In Your Home?

There may be situations in your life as you come up to retirement where you need to access money. Maybe you need to find a way of funding your elderly relatives nursing care or your child's university fees, or that extension you have wanted for years.

If you are a UK homeowner 55 plus you may be able to access the money in your home with the Saga Equity Release Advice Service.

So What Is Equity Release?

With Equity Release you can unlock the full value of the equity you have in your home or a proportion of the value. The sum is a tax-free lump and you don't have to move.

The Saga Equity Release Advice Service guides you through the process and helps you decide if it is right for you and your circumstances. For example, equity release may affect your state benefit entitlement and will reduce the value of your estate. Saga is a transparent company and they explain everything clearly, the pros and cons of releasing the equity in your property. If equity release is not for you, they will also look at other options and there is no obligation.

There are two types of equity release scheme, - a lifetime mortgage and a home reversion plan. A lifetime mortgage is secured against your home, and a home reversion plan involves selling part or all of your home. Either type could provide you with a tax-free cash lump sum, a regular income or both.

The service is not the perfect service for everyone but it can really help you out if you need access to the money invested in your property.

Saga customers stated use of equity release, some customers used it for multiple purposes July-Dec2015 

So I asked my followers on Twitter what they would use the money for if they applied for Equity Release in their home and here are the results.

As you can see, some answers were very similar, home improvements and a holiday being a clear favourite in both polls. Personally, I would use it for a new kitchen and replace the carpets in our home, expensive things to do that I don't have savings for.

You may want to cross off the things on your bucket list like visit the Great Wall Of China

Home improvements may mean that granny annexe for your elderly parents, a new kitchen or extension, and these may actually increase the value of your home. Alternatively, you may feel that it is the right time to do some of the things on your bucket list such as visit the awesome Great Wall Of China, go on an amazing African safari or drive that Route 66 road trip across America you've wanted to do forever. Other people may want to pay off their mortgage or loan debt or give a lump sum to their children for a deposit on their home or to help with wedding costs.

Another option is government HECM reverse loans and private reverse mortgages that can both solve that problem for you. If you meet the age 62 requirement, you can apply to receive loan money without the ongoing mortgage bills of a traditional loan. The reverse mortgage lets you keep owning and living in your house for years without a mortgage bill to pay. However, you have to keep up with the upkeep of the property and be prepared to pay a lot of interest in the long run.

So if you are a homeowner coming up to retirement it could be worth you checking out your options. What would you use the money for?

*PR collaboration. This post is for information purposes only always seek an expert for financial advice.


  1. Fab post. I didn't know about this equity release so thanks for informing me.

  2. Financial matters can be daunting, particularly for the older generation, so it's great to know they is sound advice available for those who need it. I don't think I would use it for something non-essential, it would be more likely to be something I needed, like the car.

    1. Financial matters can be daunting I agree Lucy,

  3. There is some really good advice here and people could definitely benefit from it. Thanks for sharing x

  4. Interesting post, although it's t not an option for me yet, it does apply to my parents so I'll share it with them - thanks for sharing x

  5. I love posts like this! Really informative and good information to know!


  6. My gran did this on her home and relieved some of her pressures financially after my Grandpa passed away x

  7. Such a great thing to be able to do. First thing... I need to own my own home...!

  8. This is really interesting especially as it's a topic I have not really known much about before and if your retried and have a bucket list you want to achieve this could be the perfect way to raise funds

    Laura x

  9. I'll let my nan know about this. I've never heard of this. I think I'd probably pick a holiday x