Is Equity Release Safe?

The facts and the myths.

Is Equity Release Safe?

The facts and the myths.

Is Equity Release Safe?

The facts and the myths.

Is Equity Release Safe?

The facts and the myths.

Is Equity Release Safe?

The facts and the myths.

How much can I Borrow?

This is dependent on two factors. The value of your home and how old the younger applicant is if a joint application. The table below will give you an idea of how much you could borrow at any given age. This will depend on the recommended lender and the plan terms and conditions. Affordability and “stress testing” does not factor in the assessment process.

This is how much the provider is prepared to lend, NOT, as is a common misinformed untruth, how much the lender is prepared to offer for your house. With a Lifetime Mortgage, you’ll always own your home. The lender will have a First Legal Charge, just as they do with a conventional Earlier Life Mortgage. There’s no difference.

I’ll give an example. The younger applicant is 71 years old, with a house worth £225,000:

Find the age 71 on the table below and you’ll see the “Indicative loan to value” is 46%

Therefore, £225,000 X 46% = £103,500. This is the maximum that could be borrowed.

Note, the closer your borrowing comes to the maximum available, the higher the interest rate charged. Most customers take an initial amount they’re comfortable with and have a reserve or drawdown fund pre-agreed. This means they can come back for more money in the future. At the time of writing, August 2020, rates can be less than 3%. (Rates on future drawdown amounts will be at the then-prevailing rate).

Your personal circumstances and needs have to be taken into account to make sure the plan recommended provides the best value over the term, whilst meeting your specific requirements. This is why you must have advice from a fully qualified specialist Equity Release adviser.

Please use the contact form, link above on the menu, to get in touch so I can provide more details.

Scroll right on mobile to see the whole grid.

Your age Indicative loan to value Your age Indicative loan to value
55 27% 70 45%
56 28% 71 46%
57 29% 72 47%
58 30% 73 48%
59 31% 74 49%
60 33% 75 50%
61 34% 76 51%
62 35% 77 52%
63 36% 78 53%
64 37% 79 54%
65 38% 80 55%
66 39%
67 40% 85 58%
68 41% 90 58%
69 42% 95 58%