Why choose equity release?

If you’re thinking about using some of the value from your home to support your later life finances, you’ll likely already have things in mind you want to spend the money on. Here are some of the most common reasons that people choose equity release.

Paying off an existing mortgage

Take away the stresses of paying off your existing mortgage in later life and retain full ownership of your home through a lifetime mortgage.

Gifting to your loved ones

Whether you wish to help with a house deposit, new car, or simply to reduce your loved ones’ financial worries, you can gift a living inheritance using some of your home’s value.

Clearing existing debts

Clearing your existing debts and repayments could help to free up more disposable income and transform your later life for the retirement you deserve.

Home and garden improvements

Make sure your home meets all your wants and needs; whether that’s bringing it up to date or making changes in preparation for the future. Subject to criteria.

Going on holiday or buying a new car

By releasing some of the value tied up in your property, you could finally go on that holiday of a lifetime or get the car you’ve always dreamed of, and have more time to enjoy it.

Why choose a Standard Life Home Finance lifetime mortgage?

All our lifetime mortgages are rated 5 stars by Defaqto and include the following protections.

The option to make partial repayments

You can help manage the size of your lifetime mortgage loan and your total cost of borrowing by servicing the interest or repaying capital with ad-hoc or regular repayments, choosing how much you wish to repay and when, without incurring early repayment charges. Subject to criteria.

However, if making repayments doesn’t suit your circumstances, there’s no obligation for you to do so, and instead, the loan plus rolled up interest will be repaid when your lifetime mortgage comes to an end, which is typically when the last surviving applicant passes away or moves into long-term care.

If you choose to opt for a Horizon Interest Reward lifetime mortgage and commit to making set monthly payments for an agreed term of 5, 10 or 15 years, you are able to access a discounted interest rate and significantly reduce your total cost of borrowing over the duration of your lifetime mortgage.

Avoid passing on equity release debt with a no negative equity guarantee

Our lifetime mortgages come with a no negative equity guarantee, meaning you can never owe more than your home’s future value or pass on any equity release related debt to your beneficiaries

No need to downsize

With a lifetime mortgage, you can unlock some of the value from your home without having to move or downsize. You’ll retain full ownership of your property and can remain living there for as long as you wish.

Flexibility to move home in the future

Should you wish to move home after taking out your lifetime mortgage, you may be able to take your lifetime mortgage loan with you to your new home, subject to criteria. This is called porting. We may ask you to repay part of the amount outstanding on the lifetime mortgage if the maximum loan available on your new property is lower than the outstanding balance of your existing lifetime mortgage.

If your new property fails to meet our lending criteria, you then have the option to repay your loan early and in full, with our downsizing protection feature, without incurring any early repayment charges.

Interest rates fixed for life

The interest rate on your lifetime mortgage is fixed for life, protecting you against any future interest rate rises. That said, if interest rates reduce, you may have the opportunity to remortgage your plan and secure a lower rate, subject to early repayment charges.

With a Horizon Interest Reward lifetime mortgage only, to retain a discounted interest rate for the duration of your lifetime mortgage, you must keep up with making the set monthly payments for the specified term that was agreed when taking out the lifetime mortgage.

All our plans meet Equity Release Council standards

As the UK trade body for equity release, the Equity Release Council works to set the standards for consumers within the equity release market, and all our lifetime mortgages have been developed to meet these standards.

What to consider before taking out a lifetime mortgage

When considering equity release, we want you to be aware of the benefits and drawbacks before making a decision.

You can unlock cash from your home, tax-free, to help meet your needs in later life
You’ll always retain full ownership of your home and can stay in it for as long as you wish with a Horizon lifetime mortgage
You can choose to make reduced or no monthly repayments to suit your circumstances with a Horizon lifetime mortgage, subject to criteria. Or with a Horizon interest reward lifetime mortgage you'll be rewarded with a discounted interest rate by paying off some or all of the interest each month over an agreed term of 5, 10 or 15 years
You’ll never owe more than your home’s worth with a Horizon lifetime mortgage
You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges

A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
Equity release may leave you with limited or no property equity remaining
Equity release will reduce your financial options in the future
A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply
You should always think carefully before securing a loan against your home to repay existing debt

Getting the right advice

If you are considering a lifetime mortgage, it is a Financial Conduct Authority regulation that you first seek advice from a qualified equity release adviser, who will help you understand your options and advise on what is right for you.

All Equity Release Council members agree to abide by Equity Release Council rules, guidance and standards, and have signed up to the Council's Statement of Principles. When finding your equity release adviser, you can search the Equity Release Council's database of registered equity release adviser members.