Can I release equity if I still have a mortgage?

The beauty of a mortgage is in how it enables so many people to claim ownership to bricks and mortar. You can build up some equity in your own name as property prices typically increase over time, and place your stamp on your home. But more and more homeowners are struggling. Reader's Digest's Equity Release experts say struggle no more!

For some home owners either in or approaching retirement a mortgage has turned from an opportunity to own a home into a financial burden which they are unable to bear on a reduced retirement income. This is the case for 260,000 home owners.

Surprisingly, the solution to this problem actually lies in the equity that has built up in the value of your property. The answer takes the form of a Lifetime Mortgage, a type of equity release, which enables home owners aged 55 and over to release money from their property to spend as needed, even to clear a mortgage.

How does it work?

The Lifetime Mortgage allows home owners to access tax-free cash with no need to make monthly payments unless you want to. You retain 100% ownership of your property and can even guarantee an inheritance for your loved ones.

The amount you release will depend on your age and property value; the older you are and the more valuable your home the more you can release.

Releasing Equity if you still have a Mortgage

The typical outstanding mortgage at retirement averages around £50,000 although it’s not uncommon for this figure to be much higher.

Using a Lifetime Mortgage this way could mean you even have some funds left over to achieve other plans such as home renovations, a holiday, new car or to fulfil other needs you may have.

Could an early inheritance help your children to purchase their first home?

The main factor here is that the amount you release has to clear the existing mortgage or debt on the property, after that the money can be spent as you want.

The Benefits of Paying off an Existing Mortgage

The benefits of paying off an existing mortgage are clear, from the removal of stress and worry regarding monthly payments, to knowing that your home is secure and fully paid for.

A Lifetime Mortgage is incredibly flexible and unrestrictive as it can be transferred to another property should you decide to move, and the plan can be repaid early if you choose.

Another benefit is that the mortgage debt is not passed on to your heirs as the plan plus any interest is recovered from the sale of your property either when you pass away or go into full time care.

To find out if you could pay off your existing mortgage and debts and even have some funds left over, simply use our interactive calculator to receive a live estimate of how much you can release.

Alternatively you can free phone 0808 231 1968 to speak to a specialist who can provide free initial advice based on your unique details and answer any questions you may have.


A Lifetime Mortgage may impact the value of your estate and could affect your entitlement to means-tested benefits. Think carefully before securing other debts against your home. To understand the features and risks ask for a personalised illustration. Reader's Digest Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register ( under reference 610205. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,490. Our adviser will talk through the setting up costs of a Lifetime Mortgage before you make any decision to proceed.

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