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Equity release

Equity release allows you to unlock some cash from the value of your home.

The amount you can release depends on your age, how much your property is worth and how much you choose to borrow.
 

 

What is equity release?

If you’re over 55, you may be able to release some of the equity in your home.

Equity release is a type of loan which is secured against the equity you have in your home.

There are two options for how you can borrow the money.

Conditions apply.

Ways to release equity

Here are a couple of ways you could release equity in your home. 

Lifetime mortgage

This lets you release some of the equity from your home, allowing you to spend the money for things you need today.

You can decide whether to pay monthly interest on what you have borrowed or to make no repayments. If you make no payments, the interest will be added when you, or the last borrower, passes away, permanently moves out or sells the home.

Home reversion

With home reversion, you sell a share of your property in return for a lump sum. Allowing you to continue to live in your home, with part of it now belonging to a lender.

Important to remember

When your property is sold, the proceeds of the sale will be shared with the owner and the lender. It will be split by the percentage that you sold.

Mortgage lending

You could borrow more on your current Halifax mortgage to put your plans into action.

See what other borrowing options you might have.

Conditions apply.
 

Borrow more on your mortgage

Costs and timings

Releasing equity from your home is a big decision to make. Make sure you consider all the risks and get independent advice before you start.

How much does equity release cost?

There are fees involved with equity release, which will differ between lenders.

These may include an arrangement fee, valuation fee, solicitor fee and an advice fee.

MoneySavingExpert advises that generally, these costs can be between £1,000 and £3,000.

How long does equity release take?

Releasing equity from your home can take around eight weeks. After you apply, the lender will value your home and make you an offer.

Always make sure you get independent advice so that you are confident that your decision meets your current and future needs.

Let’s take a closer look

  • You'll owe more money

    Consider how this will affect you long term. If you haven’t paid off your mortgage, you may have to borrow the equity at a higher interest rate than your current mortgage rate. The lender will add interest to the loan. Not making repayments will increase the amount you owe as interest will be added at the end.

    Less inheritance

    Releasing equity in your home can significantly reduce the amount of inheritance you could otherwise pass on.

    Lifetime mortgages are repaid when the last remaining borrower dies or moves out of the property permanently. This means that the interest will still be added until the property is sold.

  • Rules for equity release will depend on your lender, but usually you’ll need to be over 55. They may also have other criteria.

    • Property value - Your home will need to meet a minimum value.
    • Applicants - Maximum number of applicants is usually two.
    • Ownership - You own the property and it is your main residence.
    • Location - Homes located in England, Scotland or Wales are most commonly accepted. But only a small number of lenders will lend in Northern Ireland and other isles.
    • Property construction - Your home is of ‘standard construction’, bricks or stones and a pitched tile roof. Other construction types may be acceptable by some lenders.
    • Property condition - Your home must be in good condition. Your lender may do a valuation.

  • Downsizing could free up some money and may be a better option. If you’ve paid off your mortgage, selling your home and buying a smaller, cheaper property outright could mean you free up money from the sale.

    There will be moving house costs but this may be a cheaper option.

Help with saving

Saving some money could be another option for you. Learn about the tools that can help you.

Spending insights

Have a look at your current spending habits and see where you can reduce some of your spending.

Where you can, cut back on some of the things you buy. Set up a standing order into your savings account for the money you save.

Budget calculator

The budget calculator is designed to help you work out how much you can put aside each month.

If you can save £100 a month, you’ll have saved £6,000 in five years.

Set up a standing order into a savings account and earn interest as you save.

Save the Change®

Activate the Save the Change® feature in the app or online banking.

When you use your Halifax debit card, we'll round what you spend to the nearest pound. We’ll then transfer the change into your nominated savings account.

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Can we help?

Speak to one of our mortgage and protection advisers.
 

Speak to an adviser

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