Enjoy the true value of your home

Recent data reveals the staggering potential wealth available to the UK’s elderly homeowners

Property becomes an increasingly important component of your wealth as you age, and this has never been truer with low interest rates affecting savings and pensions underperforming.

Nevertheless, research by the Council of Mortgage Lenders (CML) indicates that over-55 UK homeowners could be sitting on a goldmine with their accumulated property wealth calculated to total £2.5 trillion1. To place this figure in context, the UK’s elderly homeowners could potentially access more wealth than the GDP of France (£2.4 trillion), according to the latest IMF projections2.

However, the CML report also indicates that mortgage debt is rising fastest amongst older households, plus incomes traditionally drop in later life. The question is how can this asset wealth be used to benefit you?

Accessing a portion of the equity stored in your home now could provide you with a timely financial boost in later life. If you’re a UK homeowner over the age of 55, you may be eligible for a lifetime mortgage that could see you access as little as £10,000 of the wealth in your property – a tiny fraction in light of the statistics above – which could help you clear any existing mortgage debts, and provide you with financial security and freedom in retirement.

A lifetime mortgage allows you to convert some of the value of your property into a tax-free cash sum, without having to give up ownership of your home. Lifetime mortgage plans have no fixed-end date and come with no required monthly repayments, so the funds you release are yours to spend as you wish. The mortgage and accrued interest are not due for repayment until both you and your partner either pass away or both enter long-term care.

If you are concerned about the build-up of the loan value over time, plans are available that allow you to pay off up to 10pc of the mortgage balance each year without penalty. This can help offset the interest accrued and help to secure some of the property’s wealth for your future use.

What’s more, with plans from Equity Release Council-approved lenders you will benefit from the safety of the no-negative equity guarantee, ensuring that you and your family will never owe more than the value of your home. Plans from approved lenders also allow you the option of moving to a suitable alternative property, subject to the lender’s criteria.

On top of this, competitive rates of fixed interest are available, which allow you to get an accurate projection, so you know exactly what is happening with your money at all times.

There’s no need to face the golden years of retirement with the clouds of mortgage debt or limited incomes looming on the horizon. After years of responsible saving and hard work, your property could provide you with the financial boost to face the future with confidence, so you can have the retirement you deserve.


Could equity release help you? Call us now and speak to one of our expert team who will give you all the information you need.

0800 652 2955

1 Source: Council of Mortgage Lender, ‘Later life borrowing, New mindsets: old silos’, June 2017, p.23
2 Source: IMF World Economic Outlook, April 2017
A Lifetime Mortgage may reduce the value of your estate and affect your entitlement to means tested state benefits. To understand the features and risks, ask for a personalised illustration. Responsible Equity Release is a trading style of Responsible Life Limited. Only if your case completes will Responsible Life Limited charge an advice fee, currently £1,295.

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    Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (http://www.fsa.gov.uk/register/home.do) under reference 610205.

    This is a Lifetime mortgage which may reduce the value of your estate and may affect your entitlement to state benefits. To understand the features and risks ask for a Personalised illustration.

    Any information contained herein is a personal opinion of the author and should not be considered to be advice of any kind. Inheritance Tax planning is not regulated by the FCA. Think carefully before securing other debts against your home. By consolidating your debts into a mortgage you may be required to pay more over the entire term than you would with your existing debt.

    Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,295. Our adviser will talk through the setting up costs of a lifetime mortgage before you make any decision to proceed.