Frequently asked questions

Equity release FAQs

When considering equity release, it’s natural to have questions. To support you in answering any questions you may have, we’ve created a list of the most frequently questions asked and answered them below.

Will I still own my home?

Yes. With all Standard Life Home Finance lifetime mortgages, you’ll still own your home and can remain living in it for as long as you wish.

Can equity release debt be passed onto my loved ones?

No. All Standard Life Home Finance lifetime mortgages come with a no negative equity guarantee, meaning you’ll never owe more than your home is worth or pass on any equity release related debt to your loved ones. However, it’s important to remember that a lifetime mortgage may leave you with limited or no property equity remaining, and it’ll reduce your financial options in the future.

Can I move house in the future?

Yes. All Standard Life Home Finance lifetime mortgages allow you to transfer your plan to a new home, subject to criteria. If your new home doesn’t meet this criteria, our downsizing protection feature allows you to move home and repay your loan in full without incurring early repayment charges from day one.

Who handles the legal process?

You’ll need to appoint an independent solicitor to handle the legal side of the process.

What can I use the money for?

You can spend your tax-free money in several ways, such as repaying an existing mortgage or debts, gifting to a family member, making home improvements or boosting your later life finances. You should always think carefully before securing a loan against your home to repay existing debt.

I still have a mortgage, can I take out equity release?

Yes. However, you’ll need to repay your existing mortgage on or before completion of your lifetime mortgage. You can use some or all of the money you release to do this.

What happens to my loan when I pass away?

Typically, when you pass away or move into long-term care, your home will be sold. The sale proceeds will then be used to repay the amount you owe, and any remaining equity in your home will be left to you or your estate.

How will my home be valued?

Your property will be valued by an independent RICS registered surveyor so you can be confident of an unbiased opinion of your home’s worth for mortgage purposes.

Will I have to make repayments?

No, not unless you choose to. With a Standard Life Home Finance Horizon lifetime mortgage, there are typically no monthly repayments for you to make, as the loan, plus roll-up interest, is repaid when your plan ends. However, you can choose to manage your total cost of borrowing by making ad-hoc or regular repayments without incurring early repayment charges. Subject to criteria.

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

Do I have to seek advice before taking equity release?

Yes. If you are considering a lifetime mortgage, it is a regulatory requirement that you first receive advice from a qualified equity release adviser who will help you understand your options and advise on what is most suitable for you.

You can find an adviser by searching the Equity Release Council's database. 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.

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 your estate’s value and may affect your entitlement to means-tested benefits
A lifetime mortgage may result in limited or no property equity remaining and will reduce your financial options in the future
You should always think carefully before securing a loan against your home to repay existing debt
The loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care
An advice fee may apply. Advice fees vary among independent financial advisers, so we recommend discussing this with your adviser if you are unsure
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

Getting the right advice

If you are considering a lifetime mortgage, it is required that you first receive 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.

Find an adviser