Equity Release Mortgages

Q: Who can utilise equity release?

For a lifetime mortgage, you or both applicants if borrowing jointly usually need to be at least 55 years old. For a home reversion plan, you or both applicants usually need to be at least 65 years old. You must own a property in the UK which is your main residence, and any existing mortgage or secured loan would normally need to be repaid as part of the arrangement.

Q: What are the advantages of equity release?

Potential advantages can include accessing a tax-free lump sum or smaller regular payments, continuing to live in your home, benefiting from any rise in your property value and, with some plans, being able to move to a suitable alternative property in the future. Equity release advice should always consider your personal circumstances and possible alternatives first.

Q: What are the disadvantages of equity release?

Equity release reduces the value of your estate and may reduce the amount left to beneficiaries. It can also affect entitlement to means-tested benefits, and if care is funded by the local council it may affect what you need to contribute. With a home reversion plan, the provider owns all or part of your home.

Q: Do Blueberry Mortgages only recommend Equity Release Council lenders?

Yes. The page states that Blueberry Mortgages only recommends lenders that are members of the Equity Release Council, and it explains the council’s role in promoting standards and consumer safeguards within the equity release sector.

Q: Why use Blueberry Mortgages for equity release advice?

Blueberry Mortgages offers independent advice, a carefully selected panel of leading lifetime mortgage lenders and the ability to access the wider market if needed. The firm also states that it is a member of the Equity Release Council and helps clients across the UK by phone, video call and in person where appropriate.

Later life lending and equity release advice

Equity release can be a viable option for homeowners aged 55 and over who want to unlock tax-free cash from their home in retirement. It may be considered for home improvements, helping family, paying for care costs, repaying existing borrowing or supplementing retirement income, depending on your circumstances and goals.

At Blueberry Mortgages, our qualified advisers take the time to explain how later life lending works, the main options available and the advantages and drawbacks to consider. If equity release is not the right fit, we can also help you think through whether there may be alternatives worth considering first.

How we can help you

No Negative Equity Guarantee

No monthly payments, or optional payments

No need to move home

Choose from a lump sum, or supplement your income

Available from the age of 55 years and upwards

Protect some equity for inheritance

We only recommend lenders that are members of the
Equity Release Council

Home Reversion and Lifetime Mortgage schemes available

About the Equity Release Council

We are members of the Equity Release Council, a consumer-focused trade body that promotes high standards of conduct and practice in the provision of and advice on equity release, with consumer safeguards at its heart.

The council exists to help improve standards, build confidence in equity release products and raise awareness of how housing wealth can help address a range of financial challenges later in life.

Its standards and safeguards have helped the sector grow by giving advisers and customers confidence in the products, dispelling myths about equity release and improving public understanding of how property wealth may be accessed for different purposes.

The council brings together providers of equity release plans, solicitors, intermediaries, financial advisers, consultants, surveyors and other industry professionals, all committed to the principles of membership.

Common questions answered

Who can utilise equity release?

There are certain conditions you must meet before being able to consider equity release.

For a lifetime mortgage, you or both of you if you are borrowing jointly need to be at least 55 years old.
For a home reversion plan, you or both of you if you are taking out a plan jointly need to be at least 65 years old.
You must own property in the UK which must be your main residence.
Your property must be in reasonable condition and over a certain value, and there may also be restrictions on the type of property accepted.
If you have a mortgage or secured loan on your property you may still qualify for equity release, but it will depend on the value of your home and the amount outstanding on the existing mortgage or loan.
You will have to pay off any outstanding mortgages or loans secured against your home at the same time as taking equity release.
Equity release may not be suitable if you have dependants living with you.
Any dependants should take separate legal advice.
If they wish to remain living with you in the property, they may need to sign a waiver confirming that they understand they do not have the right to reside there if you die or move into permanent residential care.

What are the advantages of equity release?

Understanding the features and risks of equity release is complicated, so personal advice is important. Some of the potential advantages are outlined below.

Our equity release advisers are qualified to give advice. They will review your personal circumstances and see if there are any possible alternatives that you should consider before applying for equity release.

If equity release is the right option, your adviser will provide a recommendation on the type that best suits your requirements.

Advantages

You can receive a tax-free lump sum and or smaller regular payments to supplement your income, while continuing to live in your home until you die or move into permanent residential care.
You may continue to benefit from any rise in the value of your property.
You may still be able to move to a suitable alternative property in the future, as equity release can be transferable.
Any transfer will be subject to your new home meeting the property suitability criteria applicable at the time.
With a lifetime mortgage, you continue to live in and keep ownership of your home.

What are the disadvantages of equity release?

Below are some of the potential disadvantages of equity release, but you should seek further personalised advice before making a decision.

Disadvantages

Equity release reduces the value of your estate and the amount that may go to the people named as beneficiaries in your will.
Your estate is everything you own, including money, property, possessions and investments.
With a home reversion plan, the reversion company owns all or a part-share of your home.
Getting a lump sum or taking extra cash to supplement your income may reduce your entitlement to means-tested benefits, now or in the future.
If you get care at home funded fully or partially by the local council, they may start charging you or ask you to pay more.

Do I have to make monthly payments on equity release?

Not always. Some equity release plans do not require monthly payments, while others may allow optional payments. The right choice depends on your circumstances, the type of plan and how you want it to affect the amount repaid in the future.

Do Blueberry Mortgages only recommend Equity Release Council lenders?

Yes. We only recommend lenders that are members of the Equity Release Council. This reflects our focus on consumer safeguards, standards and responsible advice in the later life lending market.

Why use Blueberry Mortgages for equity release advice?

Blueberry Mortgages offers independent advice, access to a carefully selected panel of leading lifetime mortgage lenders and the ability to search the wider market if needed. We help clients across the UK and take time to explain both the opportunities and the risks before making a recommendation.