Equity release is becoming an increasingly popular option for homeowners aged 55 and over looking to unlock tax-free cash from their home. But how exactly does it work and what will it cost?

At HFA Later Life, we provide clear, honest advice so you can make an informed decision. Here’s a simple guide to how equity release works, what to expect, and how we help you find the right plan for your needs.

How Does Equity Release Work?

Equity release typically refers to a lifetime mortgage – a loan secured against your home that allows you to access a portion of its value without selling or moving.

The loan, plus interest, is repaid when you pass away or move into long-term care, usually from the sale of the property.

You can choose to take the money as a lump sum, set up a drawdown facility, or a combination of both.

Key Features

• No monthly repayments required (though voluntary payments are often allowed)

• Tax-free funds

• Inheritance protection options available

• Fixed interest rates for life

All plans we recommend meet the standards set by the Equity Release Council, offering you legal protection and peace of mind.

What Are the Costs?

The overall cost of a lifetime mortgage includes several elements:

1. Interest:

Lifetime mortgages charge compound interest. This means interest is added to the loan each year. If you don’t make repayments, the total amount owed can grow significantly over time.

Interest rates are typically fixed for life, and rates vary by provider and product.

2. Advice Fee:

We charge a transparent, fixed advice fee – which will be discussed and agreed upon before any application is made.

3. Set-Up Fees:

These may include:

• Lender arrangement fee

• Valuation fee (though many are free)

• Solicitor’s fees

We’ll always give you a clear breakdown of all fees upfront.

How Much Can I Borrow?

This depends on your age, property value, and sometimes your health. Generally, the older you are, the more you can release – often between 20% to 50% of your home’s value.

We’ll help you understand your maximum release amount and how to structure it wisely.

Is It Worth It?

Equity release can be a powerful tool, but it isn’t right for everyone. It’s essential to weigh the benefits against the long-term impact on your estate and inheritance.

At HFA Later Life, we don’t push products – we offer guidance based on your goals, lifestyle, and needs.

Let’s Talk About Your Options

Want to know how equity release could work for you and what it might cost?

Start with a free consultation. Visit www.HFALaterLife.uk to learn more and speak with a qualified equity release adviser.

Important Notice:

Equity release includes Lifetime Mortgages and Home Reversion Schemes. We can advise and arrange Lifetime Mortgages and will refer to an approved specialist for Home Reversion schemes.

This is a Lifetime Mortgage. These are only applicable to those 55 and over, and it could affect eligibility to state means-tested benefits and the inheritance you may leave. To understand the features and risks, ask for a personalised illustration

There may be a fee for advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £1500.