Equity Release Quotes
Getting an equity release quote? You’ll need to know what details to provide, why comparing providers is essential, and be aware of potential risks to avoid nasty surprises.
Key points to consider
- Importance of comparison. Comparing equity release quotes allows you to explore a range of interest rates, features, and providers. Thousands of UK homeowners aged 55 and older use equity release each year to access the wealth tied up in their homes.
- Market trends. According to the Equity Release Council, new customer numbers dipped 11% in Q4 2023, which, coupled with the shift towards drawdown, resulted in total lending of £504m for Q1, down 6% from £535m in Q4 2023.
- Simplifying the information. At Equity Release Right, we aim to educate you on the equity release process and its role in retirement financial planning. Requesting quotes helps you explore options for unlocking your home’s value. As we do not offer equity release or generate leads, we can remain unbiased and impartial.
- Expert analysis. We spend hundreds of hours analysing the latest equity release news. Our content is reviewed, fact-checked, and updated to ensure accuracy and relevance. Remember, this information is educational and not financial advice. Always consult a professional adviser before making decisions.
Getting an equity release quote
To get started, use the free calculators most lenders, brokers, and comparison sites offer (including our free equity release calculator). Remember, these provide basic estimates based on minimal information, such as your age and house value. Speak with a qualified equity release broker or adviser for a more tailored quote.
Sources for equity release quotes
- Online calculators. Many providers offer essential quotes through online calculators. Use these for comparison, but remember they don’t account for personal circumstances.
- Advisers. Equity release advisers have access to a wide range of providers and can offer personalised advice.
- Comparison websites. Sites like Equity Release Supermarket and Equity Release Wise allow you to compare different offers in one place.
Factors influencing your quote
- Age and Health. Older individuals can typically borrow more. Some providers offer enhanced plans for those with specific health conditions or lifestyles.
- Property Value and Location. Higher property values usually mean higher potential loans. The location also affects the equity you can access.
- Outstanding Mortgage or Debt. Any existing mortgage or debt must be paid off with the equity release proceeds, reducing the net cash you receive.
- Interest Rates. Providers’ interest rates impact the overall cost of the loan. Lower rates mean less to repay over time.
What you need for a quote
To get an accurate equity release quote, provide your broker or adviser.
- Personal details (name, contact information, address)
- Age
- Property value
- Outstanding mortgage or loan details
- Property location
- Health details
Comparing providers
Comparing equity release providers can help you find competitive rates and understand the different plans and features available.
Consider interest rates, loan-to-value ratios, early repayment charges, product features, and provider reputation.
What to consider
- Interest Rates. Lower rates mean less to repay.
- Loan-to-Value Ratio. Determines the maximum amount you can borrow.
- Early Repayment Charges. Fees for repaying the loan early.
- Product Features. Look for repayment options, flexibility, and guarantees.
- Reputation. Check independent reviews.
- Flexibility. Consider if you need a plan with flexible fund access.
- Regulation. Ensure the provider is authorised and regulated by the FCA and a member of the Equity Release Council.
Things you need to know about Equity Release
Equity release can offer a way to access extra funds without leaving your home, but it’s not without drawbacks. Here are some reasons why it might not be the best choice for everyone.
- Cost. Equity release can be more expensive than a regular mortgage. With a lifetime mortgage, you’ll typically face higher interest rates, and the interest can compound over time, increasing your debt.
- No fixed term. Lifetime mortgages usually don’t have a fixed repayment term. The interest rate remains constant throughout the contract, and any additional borrowing may have varying interest rates, potentially affecting your overall debt.
- Home valuation. Home reversion plans may not offer the total market value of your property since you’re allowed to remain in your home for life. This means you might receive less than if you sell your property on the open market.
- Future financial needs. Releasing equity from your home could limit your ability to use the property’s value for future financial needs, such as long-term care expenses.
- Downsizing challenges. While you can move home and transfer your lifetime mortgage, downsizing may not be feasible if you don’t have enough equity to cover the mortgage repayment.
- Impact on benefits. Receiving money from equity release could affect your eligibility for state benefits, potentially reducing your overall income.
- Arrangement fees. Equity release often involves arrangement fees ranging from £1,500 to £3,000 depending on the plan, adding to the overall cost.
- Inheritance. If you opt for an interest roll-up lifetime mortgage, there may be less to pass on to your family as inheritance, as the debt accumulates over time.
- Complexity. Equity release schemes can be intricate to unwind if you change your mind, requiring careful consideration and professional advice.
- Early repayment charges. Changing your mind about equity release may incur early repayment charges, although these are typically waived in the event of death or moving into long-term care.
- Impact on inheritance. Equity release can impact the inheritance you leave to your family members, potentially leading to conflicts or complications. Open communication with your family is crucial to address any concerns or expectations.
Considering these factors alongside your circumstances and financial goals is essential when evaluating whether equity release is the right option for you.
Remember, there are alternatives to equity release.
Looking for a quote?
While we do not provide a quote or call-back service as our website is purely informational. We understand that some people do want an equity release quote.
Get Started
To get an equity release quote we recommend Equity Release Wise
