Equity release allows you to release the tied-up equity in your house, that is, the balance on your property that is the actual monetary worth of your assets minus liabilities. Apart from the requirement that you need to be a legal homeowner in the UK, age is the primary eligibility criterion for equity release mortgage scheme.

You can avail to this mortgage to supplement a part of your retirement income.
Research shows that more people intend to avail to this scheme as much as to unlock the potential of their homes. In all instances, age is the primary factor in determining the percentage of the equity value of your home that can be released. A senior house owner can release equity of higher percentage since they are likely to predecease those younger to them, which means lesser period for the provider in which to pay the equity release mortgage. Also as of now, applications are not usually granted to anyone under the age of sixty.

Most schemes allow you to borrow a cash amount that amounts to between 20% and 50% of the value of your property. The exact amount depends on your age (or your partner’s age-whichever is the lowest). In general, the younger you are, the lower the amount you can borrow.

As time passes by and awareness rises, senior homeowners and pensioners are more likely to use the equity release for planning their finances, going into the old age with minimal worries. Of the two main and popular types of equity release mortgage, lifetime mortgages and home reversions, each has its own benefits and depends rather on which suits you more as per your individual condition and requirements.