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Equity Release For Over 70s Your 2025 Guide

equity release for over 70s

Equity release is an increasingly popular option for people aged 70 and over looking to access cash from the value of their home. It can provide a much-needed financial boost in retirement, allowing you to enjoy your later years with greater freedom and independence.

With equity release for over 70s, you can unlock the cash tied up in your property without having to move out or sell it. This means that you can get access to a lump sum of money while still living in your own home.

Equity release has many benefits, including spending the cash to achieve your goals, protecting your family’s inheritance, and accessing smaller lump sums as needed.

Example Of Equity Release For A UK Homeowner:

  • Property Valuation: £183,000
  • Release Amount: £118,600
  • Loan To Value: 60%
  • Rate: 4.84% MER
  • Redemption Penalty: None
  • Portable: Yes – you can move house subject to a new valuation

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We Can Help You Release Equity From Your Home As A Cash Sum Or Regular Payments

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    Please enter a value between £10,000 and £25,000,000
  • Please enter a number from 50000 to 25000000.
    Please enter a value between £50,000 and £25,000,000
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If you are aged 55 and above, now is the ideal time to bring more stability and security to both your finances and those of your loved ones.

Many people use equity release schemes to access money locked in their property each year. Because of this, they can capitalise on any hidden value their house may have.

Despite any current economic issues in the UK, there are approximately 300 equity release plans worth assessing. Within this selection, you will find competitive interest rates, loan-to-value ratios, and a range of long-term safeguards that ensure your plan caters to your needs later in life.

You don’t need to worry about leaving behind a reduced inheritance either – if you’re concerned about how equity release could affect your estate, you can set aside a portion of the future value of your property to be inherited by whoever you choose. Even if the loan amount increases over time, the part of your property’s value preserved will still be obtainable by any beneficiaries upon inheritance.

So why not fill out the short form above today and get a free, no-obligation quotation? It only takes a few moments, and it is easy and secure, guaranteeing peace of mind.

equity release at 70

Do any of the following questions apply to you?

  • Do you have a mortgage you would like to pay off soon?
  • Do you require money for repairs or home improvements? Like a new extension or bathroom.
  • Would you like to help a family member secure their own property?
  • Would you like to pay off all your credit cards and loans and have zero monthly payments?
  • Would you like a better lifestyle, change your car or have a well-deserved holiday?
  • Drawdown money as often as you need and flexible age requirements

Equity Release For People Over 70 Explained

Retired homeowners who need financial assistance can access some of the equity they’ve built in their homes. The older you are at the time of borrowing, the more favourable the interest rates are. This makes equity release for over 70s an attractive option. It’s not always the best option, though.

Regardless of your age, you will need professional advice from someone impartial and with an active membership to the Equity Release Council, which is the industry watchdog overseeing fair practice and transparency across the equity release market.

Reputable firms are members of the Equity Release Council, but others may be reputable but aren’t members. There are fewer safeguards in place, so it’s advised to work with an independent equity release advisor who works with a panel of authorised partners that are members of the Council, as the No Negative Equity guarantee then protects you.

Whether a provider is a member of the Equity Release Council or not, they must make sure you have received financial advice before you can join a plan.

To apply for a policy, you and your advisor will first agree that it is suitable for your circumstances. When the plan provider is a member of the Equity Release Council, you’ll be required to have at least one face-to-face consultation with a solicitor.

This can be the plan provider’s solicitors or your own, but they must act independently, ensuring they act in your best interests regardless of who pays their fees.

Equity release for over 75s can be less accessible depending on your property type. There are conditions on property types accepted by lenders, with most requiring your property to be freehold. Leasehold retirement housing won’t be acceptable for most providers.

Interest rates tend to be more attractive when you take out an equity release plan when you are older. Our guide to equity release and leaseholds will give you far greater insight into this topic.

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The Different Types of Equity Release

There are two main types of plans available, both of which are lifetime mortgages. Equity release plans involve releasing some of the equity you own in your home. Home reversion plans sell part or all of your home equity to an equity release provider; however, home reversion plans are less common.

The most common type of equity release for over 75s is a lifetime mortgage with an interest roll-up. With this plan, you can release a cash lump sum, usually a minimum of £10,000, and then make no repayments.

Instead, your loan continues to accrue interest until the last surviving partner on a joint loan dies. The home has been sold, and the loan has been repaid with interest.

The estate executor will be responsible for selling your home and then repaying the loan (capital plus interest accrued) to the equity release provider after the property sells.

The majority of equity release plans have a no negative equity guarantee, ensuring there’s never more owed than your home’s value. Still, these only apply when you work with an approved lender who is registered with the Equity Release Council.

To be members, they need to be regulated by the Financial Conduct Authority. There are many safeguards in place to protect consumers; however, there are still nuances you should be aware of before considering equity release seriously.

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The Impact Of Equity Release For Over 70s On Pension Credits

Using equity release for over 70s will impact means-tested benefits, including financial support for council tax and your pension credits. Equity release for over 75s can be complicated when pension credits are in place as there can be assessed income periods (AIPs) involved. If there are, you must speak to a specialist financial advisor.

Income from equity release for over 70s with an open-ended assessed income period does not need changes reported, but that only applies to income. Not to capital.

When you take a cash lump sum through a plan, the money is treated as capital. For those taking equity release at 70 without an indefinite AIP, capital over £10,000 needs to be reported. The income aspect of equity release concerns the drawdown facilities when they are used for regular payments.

The only time the Pension Service may waive the means-test on capital from equity release is when you’ve needed to use the money to pay for urgent home repairs, but even then, it will only be for 12 months. Your income and capital will be reassessed the following year.

Care needs to be taken when pension credits or any means-tested benefit is involved, as the money from a lifetime mortgage is yours to do as you like, but the benefits are not always an entitlement. For example, any savings over the £10,000 limit will lower the amount you get from pension credits. Savings above £16,000 stop council tax benefits.

Suppose you plan to use some of the cash for yourself and give some away to family members, such as bringing forward part of their inheritance. In that case, you need advice from your financial advisor, as the pension service and local authority may treat it as a deprivation of assets.

The term describes gifting assets – money, property, or income – to a third party so that they won’t be included in a financial services assessment for support through the social care fund to help with healthcare inthe senior years.

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When considering equity release for over 75s and pension credits, you need to be aware of the exemptions that the capital released can be used for.

Those include some home repairs essential to your well-being, debt consolidation, and buying a new car, provided it is for mobility purposes, such as replacing a Land Rover that’s difficult to get in and out of with a people carrier that’s been adapted for wheelchair access.

There are several exemptions on equity release for over 70s with pension credits in place. A financial advisor experienced in the over-70s market and dealing with complex pension issues and means-tested benefits will be able to advise you better on what’s available for your unique situation.

Using Equity Release for Care Planning

Financing home care in your senior years can be expensive. Equity release for over 75s is only suitable when it’s used to help finance home support in the long term. Equity release is unlikely to be ideal for anyone who may require assisted living, such as retirement accommodation or moving into a nursing home.

The reason is that as a lifetime mortgage is secured on your home, the loan is repaid when you move into long-term care. If that’s something you expect to happen within the next five years, it’s unlikely to be suitable.

Funding care at home can be done, but only after your local authority has carried out a means test of your circumstances. Your home is excluded from being assessed for financial support for home care with your local authority.

Savings, benefits, and available capital are assessed, so when you release equity from your home before a financial assessment, the money released can impact your affordability assessment.

Suppose you’re already receiving financial support for care services at home. In that case, equity release can trigger a re-evaluation, after which you may be asked to contribute towards your care package or pay the entire amount, depending on the increase in your savings.

About Interest Serviced Lifetime Mortgages

Most equity release plans open to those aged 55 are based on interest roll-up, or you can pay up to 10% (on select plans) interest each year without penalties because of early repayment charges.

Equity release for over the 70s tends to have more flexibility to suit different needs. One of these is considering joint applications, as the financial situation may change when one partner passes away or moves into long-term care.

Based on a joint application, both incomes are included, meaning you can contribute up to 100% of the interest, but only when the two pension incomes are available.

When the income reduces to a single pension, it can mean the surviving partner isn’t able to contribute as much to the interest repayments.

While both people are living in the home, an interest-serviced lifetime mortgage can be set up similar to a retirement interest-only mortgage where you pay the interest, preventing it from reducing inheritance as much, then later, should the interest repayments become unaffordable, it can then be converted (sometimes automatically) onto interest roll-up.

An equity release plan like this can mean preventing compound interest from reducing your estate value. At the same time, you’re able to afford to make the repayments, then start making no repayments and let the interest accrue when your financial situation requires it.

Lifetime mortgages affect your current financial situation and your family’s future inheritance, so it is imperative to get the best advice from an experienced equity release adviser before proceeding.

They will discuss all the various alternative options available, including the financial support from means-tested benefits you may be entitled to but aren’t claiming.

The Direct Costs for Equity Release

There may be upfront fees to arrange equity release, which should be discussed as your first point with any advisor. Financial advisors can be paid their fees directly or by commission from equity release providers. Some, though, take both—a fee from you directly and a commission on the plans.

Ask any advisor you’re considering working with about their fees and who pays them. If it’s a one-off fee, you will need to pay it directly to the solicitor, as the plan provider pays commission-only fees if you choose to proceed with the policy.

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Application and arrangement fees are other costs that plan providers may require. They generally range from £700 and upwards.

The arrangement fee on some plans can also cover a property valuation report; however, this will only be used by the lender to decide how much they can approve a lifetime mortgage. Verify whether the property valuation is included in the arrangement fee or if a separate fee is payable.

There will also be legal fees involved. Contribution-based schemes can be available depending on the plan provider, providing some financial support to cover legal and arrangement fees. These vary by provider.

Equity Release Over 70 For 2025

One of the best options for older people to release equity is equity release. The advantages of such a move are manifold. Not only can it help provide additional financial security in retirement and later life, but it can also provide access to funds that would otherwise remain tied up in a property or other asset.

Equity release is an attractive option for many older individuals due to its flexible nature and the absence of restrictions on spending. Moreover, the process and fees associated with Santander equity release products are much lower than those associated with traditional loans, making them incredibly cost-effective for seniors on a tight budget.

The benefits of equity release make it an excellent choice for individuals over 70 who want to maximise their financial resources and maintain their independence in retirement.

With proper advice from independent financial advisors and information provided by specialists like 1st UK Money, getting started with equity release could be one of the best decisions a senior can make for their financial future.

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