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Equity Release

  • We've teamed up with MCB Financial Services to offer you personalised impartial advice in your search for a Lifetime Mortgage
  • Compare Lifetime Mortgages below and click ‘Get Quote’ for a free no obligation consultation with one of MCB’s expert advisers
  • New to equity release? Read our full list of FAQ’s.
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MCB Financial Services Ltd are only able to advise on Lifetime Mortgage and not Home Reversion Schemes. A lifetime mortgage will be secured against your home.
  • Lifestyle Lite
  • Plan Type
    Roll up mortgage scheme
  • Interest Rate
    3.92% / Fixed
  • Maximum LTV
    35%
  • Minimum Property Value
    £70,000
  • Get Quote
  • Lifestyle Lite
  • Plan Type
    Roll up mortgage scheme
  • Interest Rate
    4.12% / Fixed
  • Maximum LTV
    36%
  • Minimum Property Value
    £70,000
  • Get Quote
  • Lifestyle Gold
  • Plan Type
    Roll up mortgage scheme
  • Interest Rate
    4.29% / Fixed
  • Maximum LTV
    41%
  • Minimum Property Value
    £70,000
  • Get Quote
  • Lifestyle Gold
  • Plan Type
    Roll up mortgage scheme
  • Interest Rate
    4.49% / Fixed
  • Maximum LTV
    41%
  • Minimum Property Value
    £70,000
  • Get Quote

MCB Financial Services Ltd are only able to advise on Lifetime Mortgage and not Home Reversion Schemes.

A lifetime mortgage will be secured against your home.

The information contained on this page has been approved for the purposes of Section 21 of the Financial Services and Markets Act 2000 by MCB Financial Financial Services Ltd, Unit 13, Beech Avenue Business Park, Taverham, Norfolk, NR8 6HW who are authorised and regulated by The Financial Conduct Authority (FCA) 608405.

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Equity Release FAQs

The term ‘Equity Release’ is used to refer to a range of financial products that allow older individuals access the cash (or equity) that is tied up in their property. This option gives those over the age of 55 the ability to borrow an amount of money against the value of their home either as a lump sum, or regular monthly income.

 

Both of the two main forms of equity release come with their own pros and cons, but they are designed to provide homeowners a way to access equity, and remain in their home longer into retirement. Both types of plans are regulated by The Financial Conduct Authority (FCA).

Equity Release is a complex product and must be considered carefully alongside your personal circumstances and future aspirations, with the help of a qualified equity release specialist. 

Q: What are the main types of Equity Release?

A: The two types of equity release product are Lifetime Mortgages, and Home Reversion Plans.

The main difference between the two, with Lifetime Mortgages, a loan is taken out and secured against your property. You can then choose a scheme that either the interest can be repaid or rolled up. 

With Home Reversion Schemes the provider will purchase all or a part percentage of your property while you retain the right to remain in the property rent free. The percentage of ownership that you retain of that property will remain the same and at the end, the proceeds of the house sale are shared according to the proportions of ownership.  

Both schemes allow you to live in your own property until death or long term permanent care is required.

Roll up Lifetime Mortgage scheme

A Roll-Up Lifetime Mortgage requires no monthly repayments to be made. Instead, the interest charged is added to the mortgage balance on a monthly or annual basis, and rolled up to be repaid when you either die or move into permanent long term care.  

Therefore, the Lifetime Mortgage balance will increase over time, potentially reducing the beneficiary’s inheritance.

Interest Only Lifetime Mortgages

An Interest Only Lifetime Mortgage allows you to make monthly repayments of the interest element of the loan in part, or in full, so that you are able to maintain the debt to, or closer to, the original amount. The interest rate is usually fixed, so the repayments remain the same. You still have the option to move to a roll up arrangement at a later date should you need to.

Home Reversion Plans

With a Home Reversion Plan, you sell either part, or all of your home in return for an amount of money, and a guaranteed lifetime lease that has no monthly repayments. The percentage you retain in your property will always remain the same, regardless of the change in property values the lender regains their percentage share when the property is sold.

Our comparison table above is only for Lifetime Mortgages. Our equity release partner MCB Financial Services Ltd are only able to advise on Lifetime Mortgage and not Home Reversion Schemes.

Q: Am I Eligible for Equity Release Programs?

A: In order to be eligible for an equity release program, you'll need to be a UK homeowner between the ages of 55 and 95.

Q: What are the Pros and Cons of Equity Release?

A: Perhaps the most positive factor in an equity release program is the fact that you gain access to a sum of money. The money that you release through the program can be spent any way you like, potentially without the stress of monthly repayments, and you can remain in your home.

However, if you release equity from your home, then you may not be able to rely on your property for money that you might need later into your retirement. In some cases, the cash accessed from equity release may also affect your benefit entitlements.

Equity Release is a complex product and must be considered carefully alongside your personal circumstances and future aspirations, with the help of a qualified equity release specialist. 

Q: How Much Can I Get with a Lifetime Mortgage?

A: The maximum percentage that you can borrow with a lifetime mortgage is usually 60% of the value of your property, but the amount that can be released will be dependent on factors such as your age and the value of your home.

Q: Can I Stay in my Home After Equity Release?

A: Following an equity release, you have the right to remain in your property until you die or go into long term care and with joint plans, your partner will be able to continue living in the property under the same terms.

Q: What is the ‘No Negative Equity Guarantee?’

A: The ‘No Negative Equity Guarantee’ in equity release programs ensures that your estate will never owe more than the property is worth when it's sold. This protection is in place to cover in the unlikely event that if the value of your house has decreased significantly and may not be worth enough to cover the amount which you owe under your equity release plan. The No Negative Equity Guarantee means that in those circumstances, the remainder of the loan is written off.

Q: Should I Look for ERC Approved Plans?

A: When looking for an equity release solution, it is best to look for providers that are members of the Equity Release Council (ERC), as these individuals follow a strict Code of Conduct designed to ensure your financial safety.