Letting your property provide for you

Reader's Digest Editors

Equity release with a lifetime mortgage could provide you with the financial security you need to afford the quality care you deserve in retirement

Can't wait to find out how much you could release? Use our handy calculator now.

With the seemingly ever-increasing costs of living, coupled with low rates and under-performing pensions, the financial challenges facing the UK’s elderly population continue to mount. With residential care costs now nearing £1,000 per week, they could also be concerned that the quality care they deserve in their later years is simply too expensive to afford.[1]

Many may be concerned at the implication of these price rises, fretting over whether this means settling for a lesser quality of care, or selling their home to fund the care they require.

However, if you are one of the 75% of the UK retirees who admitted in 2017 to being reluctant to sacrificing their home to pay for care costs in later life, there could be another way to use your property wealth to help you.[2]

Research from the Council of Mortgage Lenders has revealed that the Britain’s elderly homeowners have a collective property wealth worth £2.5 trillion.

If you are an over-55 UK homeowner, then a lifetime mortgage could provide you with regulated and flexible access to your share of this considerable property wealth. The tax-free cash you release from your home could go a long way to alleviating some of the financial burdens you may be facing in retirement, including the costs of health care, without having to consider selling your home.

Choosing the best equity release option

There are a range of lifetime mortgages available, designed to meet your circumstances. Once you have used the tax-free cash you release to clear any pre-existing debt secured against the property – such as your mortgage – the remainder of the money is yours to spend as you see fit.

Lifetime mortgages are not like ordinary mortgages. Featuring no fixed end date, your mortgage simply runs for the duration of your life, or until you enter long-term care. Interest accrued over this period simply “rolls up”: there are no obligatory monthly repayments to be made. Your total balance is paid through the sale of your home. Any remaining equity is distributed according to your wishes. Because you are borrowing against your home, a lifetime mortgage will reduce the value of your estate and may affect your entitlement to means tested state benefits. We can provide you with a personalised illustration of the features and risks to you.

Thanks to customer-focused safeguards, the popularity of lifetime mortgages has soared. At Reader’s Digest Equity Release we will only offer our customers a Lifetime Mortgage from a provider approved by the Equity Release Council, meaning that our customers can enjoy all the in-built safeguards this provides. You can take peace of mind in knowing that you will retain full ownership of your home. What’s more, a no negative equity guarantee ensures that you will never owe more than the value of your home, regardless of changes in the property market. You cannot pass lifetime mortgage debt onto your family.

With a range of options available, there is a Lifetime Mortgage to suit your needs. A drawdown scheme may be most beneficial to those looking to pay for care costs. This option provides you with an initial tax-free cash lump sum, and a further interest-free reserve of equity. This can then be accessed – drawn down – as and when you need it, for regular expenditures such as care costs for example. As you only pay interest on the money released, this can also help mitigate the costs involved with a lifetime mortgage. Life is never straight forward, but a lifetime mortgage can help provide you with flexible and secure access to the value of your most valuable asset.

Whether you're curious as to how much you can release, or you want to take the initial steps towards releasing equity, this handy calculator will give you the information you require.

Or you can contact us on 0800 029 1233 to discuss your needs with a view to arranging a no obligation face-to-face home visit with one of our financial advisers.


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 (http://www.fsa.gov.uk/register/home.do) under reference 610205. In using this website I give express consent to Responsible Life Limited to contact me on the details provided from time to time. Calls may be recorded for training and quality purposes. This is a Lifetime mortgage which may reduce the value of your estate and may affect your entitlement to state benefits. To understand the features and risks ask for a personalised illustration. Any information contained herein is a personal opinion of the author and should not be considered to be advice of any kind. Inheritance Tax planning is not regulated by the FCA. Think carefully before securing other debts against your home. By consolidating your debts into a mortgage you may be required to pay more over the entire term than you would with your existing debt. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,295. Our adviser will talk through the setting up costs of a lifetime mortgage before you make any decision to proceed.