What is equity release?
Equity release refers to a range of products that allow you to access the value (known as equity) in your home. This can be as a lump sum, in small amounts, or a combination of the two.
Whether it’s for the trip of a lifetime, to gift money to family, or to help fund some home renovation, equity release lets you unlock cash that’s tied up in your home, and make it work for you.
How much you can borrow depends on the value of your home, not individual income or affordability, and you won’t need to make any payments throughout the mortgage. Instead, interest will be added to the amount you’ve borrowed, and paid off by the sale of your house. It’s important to remember that this might mean there’s less equity in your home for inheritance for loved ones.
Benefits: at a glance
You’ll have the mortgage in place for the rest of your life
Retaining your independence to make the most of retirement
Releasing a cash sum could make a difference to your retirement
Who is it for?
Equity release isn’t available to everyone. To be eligible for equity release, you must be over 55 with a property that forms a suitable security for the lifetime mortgage.
We only accept certain types of homes for Equity Release. We’ll look at freehold or leasehold houses or bungalows, as well as leasehold maisonettes and flats (as long as they’re in a private block, of 7 flats or less). If your property is leasehold, you’ll need at least 85 years left on the lease.
The way your home is built will also affect your eligibility for equity release. It must have traditional walls (brick, stone, or block) and roof (concrete, slate, or stone tiles). It also shouldn’t have been recently affected by flooding, subsidence, or other structural issues.
Find a Equity Release adviser
If you’re thinking about taking out an Equity Release mortgage, you’ll need to speak to a specialist advisor with the right qualification. The Equity Release Council website can help you find one.Find a broker
Hodge equity release FAQs
It’s very straightforward to apply for Hodge equity release and your financial advisor will guide you through the whole process. Firstly, you’ll obtain a personalised illustration that will allow you to compare the plans of different providers easily, then you’ll complete an application form. After this, you’ll receive a property valuation and a suitable offer. The process will also include conveyancing before finally completing.
No, you don’t need to have fully paid off your mortgage to be eligible for equity release.
No. The interest on these products is rolled-up. You only pay us back when the property is sold, usually on death or moving permanently to long–term care.
Yes, it’s essential to obtain financial advice before applying. You’ll need help to consider all options on the market, and also look at benefits and grants which may be suitable.
We recommend that you discuss your plans with your family, as it will affect their inheritance. However, there is no requirement to do so.
The capital you receive from your equity release plan will be tax free. But, taking out any equity release plan could affect your eligibility for state benefits. You should make sure that your adviser informs you of any implications resulting from taking out the plan.
Yes. You retain 100% ownership of your property with Hodge equity release.
Your equity release plan is portable, and you can take it with you if you move house. However, you will be responsible for the costs involved in moving the plan. Taking out an equity release plan could affect the options that are open to you in future years, and it’s important that your adviser explains these to you before you take out the plan.