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What is Equity Release?

If you’re a homeowner aged over 55*, equity release could help you to free - or ‘release’ - equity from your home, so that you’ve got extra cash to spend on the things you want or need. 'Under 55? We may still be able to help you, click here'

Equity’ simply refers to the difference between what your property is worth and any outstanding loans, such as a mortgage loan secured on the property. For example:

  • Your house is worth £150,000. You have retired and paid off all your debts, including the mortgage. Your equity is £150,000.
  • You bought your house for £100,000 with the help of a mortgage of £80,000. The value of the house is now £200,000 and the outstanding mortgage is £10,000. Your equity is £190,000.
It’s entirely up to you what you spend your equity on and how you receive it - you might want a one-off lump-sum or you might choose regular monthly instalments.

We’ll discuss both of these equity release options in more detail later in this website.

Take your time, have a browse through this online equity release guide with your family or friends, and if you have any questions please don’t hesitate to contact us. No matter what your query, ERIC’s friendly team of equity release advisors is always on hand to offer free, no-obligation, impartial advice on equity release.

What is Equity Release?

Freephone ERIC’s advisors on 0800 077 6885
Lines are open Monday - Friday, 9.00am - 5.30pm

(*For some equity release schemes, this may be older.)