If you’re over 55 and want to access the value built up in your home, equity release might be just the thing you need to turn your retirement plans into reality. Each year thousands of homeowners access tax-free cash that's tied up in their property, and one of the best parts - you don’t need to sell your home to get it!

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But what were the top reasons for releasing equity in 2024? The latest numbers from Age Partnership reveal why their customers released cash from their homes last year.

  1. Home Makeover – Time for a Glow-Up!

Want to give your home a little (or big!) facelift? You’re not alone! In 2024, 28% of homeowners decided to unlock equity to fund home improvements. Whether it’s a fresh coat of paint or turning your attic into a dreamy loft, equity release may be able to help you get the cash you need. You can choose to take it all in one go if you have an upcoming project or release it bit by bit through a drawdown facility as you work your way through your list of home upgrades. The choice is yours! With a drawdown you only pay interest on the funds when they are released, however, they will be at the prevailing interest rate at the time which could be higher than the initial lump sum.

Got some home projects in mind? Use Age Partnership+’s free calculator to find out how much you could unlock.

  1. Repay an Existing Mortgage

Looking to reduce your committed monthly expenses? Repaying an existing mortgage was the second most popular reason people unlocked their equity. By repaying your mortgage with the funds you release, you have the flexibility to lower your fixed monthly expenses. Any money released, plus accrued interest, is repaid when you pass away or move into long-term care.

Calculate how much you may be able to unlock >

  1. Give a Gift – Make Your Loved Ones Smile

Almost 11% of customers unlocked equity to give a financial gift to loved ones. Some folks even helped their kids get onto the property ladder by gifting a house deposit! In 2024, it took 11 years and 3 months for the average couple to save enough for a house deposit. So, if you want to help and see them enjoy it now, equity release could be a way to make it happen.

Plus, if you’re worried about inheritance, there are options to ringfence some of your property’s value so you can pass it down to loved ones in the future.

Equity release may involve a home reversion plan or a lifetime mortgage. With a lifetime mortgage you can choose to include an inheritance protection to guarantee that a percentage of the house price when its sold will go to your estate.

With a home reversion plan you can choose to only sell a portion of your property to the provider. When the property is sold your portion of the sale price will go to your estate.

It’s worth noting that with both types of plans, protecting an inheritance for loved ones will reduce the amount you can release.

  1. Time to Tidy Up Those Debts

If you’ve got some outstanding credit card bills or car loans, equity release could help you consolidate them into a single loan. But a word of warning: if the interest isn’t repaid, it will continue to roll up over the lifetime of your plan and could cost you significantly more in the long run than the initial loan.

That’s why it’s essential to talk to the experts at Age Partnership+, who can help you consider your options.

  1. Upgrade Your Car

Almost 7% of customers unlocked their home’s equity to buy a shiny new car. Whether you’re looking for something more reliable or want to go green with an electric model, equity release can help you get behind the wheel of your dream car. Because once your existing mortgage is paid off, the money is all yours to enjoy spending!

Find out more with your free equity release guide >

Is Equity Release Right for You?

If you’re a homeowner aged 55 or over and your property’s worth at least £70,000, equity release might be an option. But remember – it’s a big decision and it’s not one-size-fits-all. Talk to an advisor to find out if it’s the right move for you.

Equity release is secured against your property and will reduce the value of your estate and impact funding long-term care. It also incurs various costs including arrangement fees, valuation fees, and legal fees. Through the Radio Times equity release service, Age Partnership Plus provide initial advice for free and without obligation. Only if your case completes would an advice fee of £1,995 be payable. Other lender and solicitor fees may apply.

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The Radio Times equity release service is provided by Age Partnership Limited. Radio Times is a trading name of Immediate Media Company London Limited which is an Introducer Appointed Representative of Age Partnership Limited, 2200 Century Way, Thorpe Park, Leeds LS15 8ZB. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Age Partnership Limited is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432 and is trading as Age Partnership Plus.

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