Can I Get Equity Release if I am Under 55 Years?

equity release under 55

Typically no, you cannot get equity release under the age of 55, because this product is designed to provide extra money for retirement and therefore you usually need to be at least 55 or 60 depending on the equity release provider.

With the UK life expectancy currently at 81 years, if you take out your equity release under 55, this could be way too early and you could potentially be paying interest for another 30, 40 or 50 years and this will just eat away at your savings and retirement – so equity release companies should not be helping you release money if you are under 55.

However, there are options available if you have money tied up in your home and you are looking for equity release under the age of 55. With Lending Expert, there are a number of options available, whether it is remortgaging or a secured loan and you could borrow £50,000, £100,000 or £250,000 if you check your eligibility here >>




Why Would I Consider Equity Release if I am Under 55?

Equity release can provide an important injection of cash if you are looking to release money that is tied up in your home. Perhaps you have been paying off your mortgage for years or have paid off your mortgage in full and now it means that you you will now have a lot of equity in your property. But this is not that helpful since you are not looking to sell your property and ideally, you need money for day-to-day purposes and living expenses.

With equity release, you can release 20% to 60% of the value of your home and receive in one large cash sum, which is tax-free too, and use this to top up your retirement or pension or pay for things such as home improvements, consolidate debts, weddings or gift money to children and grandchildren.


How Does Age Affect Equity Release?

When it comes to equity release, the rule of thumb is that the older you are, the more you can borrow or release.

This is because the lender is providing you with a large lump sum upfront and like any company, is looking to get a return on their investment. When you die or go into long-term care, that is when the lender steps in to claim a stake in your property or recover the full interest and outstanding debts.

So the older you are, the closer the lender is to recovering their full amount and that is why being 55 or under is unlikely to offer a valuable amount of money to release (maximum 28%), but being 70 or 80 could help you release closer to the 60% overall value of the property.



What Options Are Available for People Looking for Equity Release Under 55?


Secured Loans – A secured loan is very simply a loan that is secured against your home. The amount you can borrow is based on factors such as your income, credit status and the value of your home and how much equity you have in it, with amounts ranging from £1,000 to £250,000 and affordable rates from 3.34% APRC, repaid over 1 to 35 years.

Secured loans come under many forms including second charge mortgages, debt consolidation loans, home improvement, homeowner loans and more. Importantly, the loan is secured against your property so if you cannot keep up with repayments, your property could be at risk of repossession by the lender.


Remortgage to Release Equity – If you are looking for equity release under 55, getting a remortgage is most likely to be the closest alternative. If you have paid off your mortgage for some time, a remortgage allows you to apply for a new mortgage with more favourable rates and terms, rather than being put on a higher standard variable rate (SVR) automatically.

With a remortgage to release equity, you can also drawdown a large lump sum, like with equity release, and continue to pay off your mortgage on hopefully better rates than before. This can be better than equity release in many respects, since you are not giving up equity in your home and can continue to live in it and retain ownership forever.

You may just want to double check the terms of your existing mortgage agreement because changing or leaving too early could incur a penalty.


equity release
Equity release can be effective to release cash tied up in your home, but apply too early and the interest will add up and potentially eat away at your savings


What if My Partner is Over 55?

Yes, if you partner that you live with or are married with is over the age of 55, they can be eligible for equity release in their name and release the money they are looking for.

If the mortgage is in both of your names, you may just need to transfer your equity in the property to your partner in order to proceed and maximise the amount you can release.

What Should I Consider When Applying for Equity Release Under 55?

Equity release can be incredibly effective for homeowners who are looking for a cash injection or to maintain their standard of living after retirement.

However, as a product that targets seniors, you will probably want to avoid applying for it too early, since doing so would incur interest and eat away at your saving and the overall ownership of your home – since you may want to leave this to your children as inheritance rather than the home having to be sold to pay off the loan when you die.

There are over a 100 types of equity release products and there are lots of different variations available. So if you want to retain ownership of your home, put money aside for inheritance or perhaps downsize in a couple of years, you want to find the right product and terms to suit your requirements.

For more information and to get a no-obligation quote, you can check your eligibility with Lending Expert today >>