Equity release enables you to unlock funds tied up in your property. This money can be used for almost any purpose, whether you want to help your children buy a home, top up your monthly retirement income, carry out home improvements or even enjoy the holiday of a lifetime.

Before considering equity release, you will need to make sure you meet the eligibility requirements. In most cases, these include:

  • Your property must be worth at least £70,000.
  • You must own a property in the United Kingdom.
  • You must be at least 55 years old.

In addition, any existing mortgage secured against your property will need to be repaid in full. This can either be done using your own funds or by using some of the money released through your equity release plan.

Your age

As mentioned above, you will generally need to be at least 55 years old to qualify for equity release. However, it is worth noting that many equity release plans are only available to applicants aged 60 and over.

If you jointly own your property with someone who is under the age of 55, they will usually need to come off the property deeds before you can take out an equity release plan.

The value of your property

Your property’s value also plays an important role. In most cases, it must be worth at least £70,000 to be eligible for an equity release mortgage.

If your property is valued at more than £1 million, additional underwriting checks may be required.

Rather than setting a maximum property value, most equity release providers instead apply a maximum loan amount. However, for higher-value properties, you may be required to pay the valuation fee upfront.

Does your credit score matter?

In most cases, your credit score is not a deciding factor when applying for equity release. This is because you are not usually required to make monthly repayments during the lifetime of the plan, so affordability assessments are different from those used for traditional mortgages.

However, if you have any outstanding County Court Judgments (CCJs) or an Individual Voluntary Arrangement (IVA), these will usually need to be settled before your application can proceed.

Understanding the eligibility requirements is an important first step when deciding whether equity release is the right option for you.

You can use our Equity Release Calculator to estimate how much you could release and assess whether equity release is likely to be a suitable financial solution for your circumstances.