A financial strategy called equity release in Deal enables homeowners to access their home’s value while residing there. Those needing additional funds but not wanting to sell their homes may find this an appealing option.
The funds may be accessed as a lump sum or a regular income, depending on the type of equity release selected.
A financial product called equity release enables homeowners to release the equity locked up in their properties. Home reversion plans and lifetime mortgages are the two main categories of equity release products.
In an equity release plan known as a lifetime mortgage, the value of your home is used as collateral for the loan. The homeowner has the option of receiving a one-time payment or ongoing payments.
When the homeowner passes away or enters long-term care, the loan and rolled-up interest are paid back. A home reversion plan entails selling all or a portion of your house to a home reversion business in exchange for a one-time payment or ongoing income.
You still have the right to live there for the rest of your days without paying rent. Lifetime mortgage interest rates are typically higher than those for regular mortgages. ‘No negative equity guarantee’ is a feature of most lifetime mortgages.
This guarantees that the repayment will never exceed the property’s market value.
Home reversion plans and lifetime mortgages are the two main equity release strategies, as was already mentioned. The most popular equity release plan is a lifetime mortgage. They let you maintain ownership of your home while borrowing money against its value.
You can either make monthly payments or let the interest accumulate. The loan balance and any accrued interest are returned when you pass away or enter long-term care.
A home is sold to a provider as part of a home reversion plan in exchange for a lump sum paid tax-free or ongoing payments. Rent-free tenancy in your home is guaranteed to you until the day of your death, but you must keep it up and insure it.
Try Age Partnership’s equity release calculator and estimate how much money you could release from your property
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You must be at least 55 years old, own a home in the UK, and use the home as your primary residence to qualify for equity release. The property has to be over a particular value and in good condition. The equity release provider will determine the precise amount.
Your financial situation will also be taken into account. If you choose a plan that demands it, you must prove you can afford the monthly payments. When you take out an equity release plan, any existing mortgage or loan secured against your home must be paid off.
The table below shows you some of the best equity release rates, as at December 2023, for lifetime mortgages, from some of the leading equity release providers in the UK.
These rates may have changed since this table was updated and should be taken as indicative only. There may also be other providers not listed on this table that could offer better deals. In addition, the providers and products noted below may not be right for your particular circumstances. Therefore, we strongly recommend that you speak to an equity release adviser, who will be able to provide you with information on the latest rates, that are applicable to you.
|Product Name||Interest Rate||Type of product||Offers|
|Just For You – J2.5||6.22%||Fixed||Free ValuationNo application fee|
|Just For You – J1||6.30%||Fixed||Free ValuationNo application fee|
|Premier Flexible Pearl||6.43%||Fixed||Free Valuation|
|Premier Optional Payment Pearl||6.43%||Fixed||Free Valuation|
|Horizon 240 Drawdown||6.43%||Fixed||Free Valuation|
|Classic Drawdown Super Lite 2||6.47%||Fixed||Free Valuation|
|Horizon 260 Drawdown||6.47%||Fixed||Free Valuation|
|Classic Elite Drawdown Super Lite 2||6.47%||Fixed||Free Valuation|
|Premier Flexible Pearl||6.48%||Fixed||Free Valuation|
|Premier Optional Payment Pearl||6.48%||Fixed||Free Valuation|
|Horizon 240 Drawdown Fee Free||6.49%||Fixed||Free ValuationNo application fee|
|Classic Drawdown Super Lite 1||6.52%||Fixed||Free ValuationNo application fee|
|Premier Flexible Pearl||6.52%||Fixed||Free Valuation|
|Premier Optional Payment Pearl||6.52%||Fixed||Free Valuation|
|Classic Elite Drawdown Super Lite 1||6.52%||Fixed||Free ValuationNo application fee|
|Flexible Pearl||6.53%||Fixed||Free Valuation|
|Optional Payment Pearl||6.53%||Fixed||Free Valuation|
|Enhanced Lifestyle Flexible Option||6.53%||Fixed||Free ValuationNo application fee|
|Horizon 260 Drawdown Fee Free||6.55%||Fixed||Free ValuationNo application fee|
The equity release rates have been sourced from Equity Release Supermarket. These indicative rates and incentives may have changed since this article was last updated. Therefore, they should only be taken as a guide and we cannot guarantee their current accuracy. Please also note that we do not provide advice on or endorse any particular product listed here. The rate you are offered will depend on your individual circumstances and subject to lender approval. We recommend that you speak to an equity release advisor to see what the best options are for you.
If you take out a product with Age Partnership, we will receive a fee for introducing you to them. By contacting Age Partnership through us, the cost of any equity release product would be the same as if you had contacted them directly. The fee we received is used to help keep our site operational and to produce new content.
Seeking professional equity release advice from a financial adviser is the first step in releasing equity. They will discuss your requirements and situation while outlining the advantages and dangers of equity release.
Other options, like downsizing to a smaller property, will also be addressed. Once you’ve decided to move forward, an equity release adviser will assist you in filling out an application. Then, an impartial surveyor will visit your house to conduct a valuation.
The equity release provider will use this valuation to determine the maximum loan amount. Once the arrangement is made, you can withdraw tax-free funds from your house as an initial lump sum or as regular payments.
Before moving forward, it is advised to seek unbiased financial advice because equity release can be a complicated process. Additionally, it is wise to consult your family about your plans and consider independent legal counsel.
In later life, equity release can offer homeowners a crucial source of income. It may allow you to make home improvements, support your family financially, or generate a retirement income.
Equity release does come with some risks, though. The debt may quickly balloon due to compound interest, and the interest rates may be higher than those of a typical mortgage.
You will still own your home if you choose a lifetime mortgage, which means you are in charge of keeping it up.
Your tax situation and eligibility for means-tested benefits may be impacted by equity release. It’s critical to realise that taking equity out of your house will lower the value of your estate and may move the inheritance you leave to your loved ones.
The Financial Conduct Authority (FCA) oversees equity release, and most providers are members of the Equity Release Council. This trade organisation supports best practices and conduct when offering equity release advice.
Before putting an equity release plan into action, it is imperative to obtain independent legal advice. A lawyer will make sure you comprehend the contract’s terms and conditions.
They can also discuss how equity release might affect your estate and inheritance tax planning.
The amount of inheritance you leave to your family may be impacted by equity release. When you pass away or enter long-term care, the remaining loan balance, plus any interest, will be repaid from the sale of your property.
Your estate’s value and the inheritance you can leave will decline. Your ability to receive means-tested benefits may also be impacted by equity release.
Your eligibility for government benefits like Council Tax Benefits and Pension Credits may be affected if you have a large amount of money.
Equity release is a significant financial commitment, so carefully weigh your options before deciding. An equity release advisor can offer unbiased guidance and assist you in determining whether equity release is the best option.
Additionally, they can help you with the application process and explain the costs, such as early repayment penalties.
Always remember that if you are considering equity release, talking to your family about your plans and getting independent financial and legal advice is crucial.
You can get information and guidance from the Financial Conduct Authority and the Equity Release Council to help you make an educated choice.
Research and provider comparison is crucial when thinking about equity release. Each provider has distinct equity release products with various features and interest rates.
You can make sure you choose the equity release plan that best fits your financial situation and goals by comparing alternative options. Equity release interest rates may significantly impact the total cost of the project.
A lower interest rate will result in less interest accruing over time, increasing the method’s long-term cost-effectiveness.
The provider’s reputation and membership in the Equity Release Council, which guarantees they follow strict guidelines to protect homeowners, are also essential factors to consider.
Some providers offer flexible equity release products that let you remove money as needed or make optional monthly repayments. This can give you more control over your loan balance and flexibility in handling your money.
The equity release process can be significantly aided by hiring an equity release solicitor. Before committing, an attorney can review the equity release agreement to ensure you know all the terms and conditions.
They can also guide the potential effects of equity release on your estate and inheritance planning. The Solicitors Regulation Authority regulates equity release solicitors, ensuring that they uphold strict professional standards.
They can offer impartial legal counsel, ensuring that your interests are safeguarded. Equity release may also be impacted by family law.
For instance, both owners of a jointly owned property must consent to the equity release. A lawyer can guide you through these legal complexities and ensure everything goes according to plan.
Although equity release plans are typically associated with residential properties, it is possible to release equity from a commercial property. This may be a viable option for business owners looking to free up capital in their buildings.
A commercial equity release operates like a residential equity release. The amount you can borrow will be based on the property’s value, which will serve as security for the loan.
However, there may be unique factors to consider when releasing equity from a commercial property.
To fully comprehend the potential risks and benefits, seeking professional advice on equity release and speaking with a financial adviser specialising in commercial properties is crucial.
Deal is a charming town on the English Channel in Kent in South East England. The deal, which has a long history in the maritime industry, is home to the Time Ball Tower Museum, a former semaphore tower.
The town has a laid-back atmosphere and a vibrant cultural scene. It is known for its picturesque beach lined with colourful fishing boats. Deal’s primary postcode areas are CT14, and the area code for phone calls is 01304.
The deal was given The Daily Telegraph’s ‘High Street of the Year award in 2014 in recognition of its thriving neighbourhood businesses and sense of community.
The two castles in the town, Deal Castle and Walmer Castle, constructed during King Henry VIII’s reign, are also well-known.
The Deal Maritime and Local History Museum exhibits showcase ship models and shipwreck artefacts, reflecting the town’s close ties to the sea. The city is renowned for hosting the annual Deal Music & Arts Festival, attracting tourists nationwide.
Here is a list of local areas and boroughs where equity release services can be provided:
4) Great Mongeham
11) East Langdon
19) St Margaret’s at Cliffe
23) Denton with Wootton
38) Herne Bay
51) St Nicholas at Wade.
Try Age Partnership’s equity release calculator and estimate how much money you could release from your property
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Unlike most equity release advisors, Boon Brokers do not charge any fees! Have a free consultation to see how they can help.
You can speak to Boon Brokers on the number below and discuss your options.
0333 567 1812
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All equity release advice is provided by Boon Brokers Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.
If you take out a product with Boon Brokers, we will receive a fee for introducing you to them. Boon Brokers provides advice for free and without obligation. By contacting Boon Brokers through us, the cost of any equity release product would be the same as if you had contacted them directly.
The fee we receive is used to help keep this site operational and to produce new content.
Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
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