Equity Release: Unlock the Value of Your Home with The Mortgage Store Cheltenham & Gloucestershire

If you’re 55 or older, equity release lets you tap into the value of your home without having to sell or move out. It’s becoming a popular choice for those wanting to boost their finances in later life or enjoy a more comfortable retirement. At The Mortgage Store Cheltenham & Gloucestershire, we provide expert advice to help you decide if equity release is right for you.

How Does Equity Release Work?

Equity release allows you to access cash from your property without selling it. It can be particularly appealing since you can still live in your home, and approval may be possible even if you haven’t fully paid off your mortgage.

With equity release, you generally don’t have to make monthly repayments. Instead, the loan and any interest are repaid when your home is sold, typically after your death or if you move into long-term care. There are different options available, and each has unique features that could affect how much you can borrow and how your financial legacy is impacted.

Lifetime Mortgages

A lifetime mortgage is the most common form of equity release. It lets you borrow against your home’s value while retaining ownership.

Key features include:

• You can take the cash as a lump sum, in smaller amounts, or a combination of both.
• No monthly repayments; the interest rolls up and is paid off when the house is sold.
• Some plans allow partial payments to reduce the balance or pay off interest over time.
• No Negative Equity Guarantee: Most lifetime mortgages ensure your beneficiaries won’t owe more than your home’s value, even if property prices fall.

Home Reversion Plans

For those aged 65 and older, home reversion plans offer another option. These plans provide a tax-free lump sum in exchange for selling a part of your home.

How it works:

• You sell a portion of your home but can still live there rent-free for the rest of your life.
• When the home is sold, the provider receives their share based on the percentage they own.

It’s important to note:

• The provider may value your home below market value to reduce their risk.
• If property values increase, the provider’s share also increases.

Alternatives to Equity Release

Equity release isn’t the only way to unlock cash from your home. Downsizing—selling your home and moving to a smaller, less expensive property—can achieve similar financial benefits without the need for debt. However, many people prefer to stay in their current home, especially if it holds sentimental value or offers comfort and familiarity.

Get Expert Equity Release Advice

Equity release can offer financial freedom in later life, but it’s important to explore all your options. Our qualified advisers at The Mortgage Store Cheltenham & Gloucestershire will guide you through the process, ensuring you understand the potential benefits, risks, and impacts on your future and family.

Contact us today for a no-obligation consultation and learn how equity release can help you meet your retirement goals.