Using Equity Release for Home Improvements
Whether you’re looking to renovate or carry out repairs, a common option is to use equity release for your home improvements. By releasing equity through the value of your home, you could get access to cash without having to move out. At Warwickshire Mortgages, we regularly advise our customers on lifetime mortgages, which is a form of equity release. In this guide, we explain how you can use this loan to improve your home.
Lifetime mortgage: how it works
If you’re over 55, a ‘lifetime mortgage’ is a type of equity release allowing you to borrow against your home without the usual repayments. The loan is usually repaid at the end of the term when you either pass away or move into a long-term care setting.
You can choose to pay the mortgage interest each month or leave it to compound. Eligibility for a lifetime mortgage depends on age, ownership, medical history, and your property’s location, value and condition.
What can you use a lifetime mortgage for?
A lifetime mortgage can give you a tax-free lump sum to pay for various home improvements. Also, there’s usually no restriction on how the released funds are used.
We’ve shared a few common scenarios below:
- General renovations – you may want to replace a kitchen or bathroom, build an extension, or convert a garage into a home office. Released funds could also be used to pay for improved security systems, door and window locks.
- Sustainability upgrades – you might need to upgrade insulation in your loft or cavity walls or to replace windows with double or triple-glazing. The extra money could be used to install energy efficient technologies such as air source heat pumps or solar panels.
- Urgent repairs – mending a leaking or failing roof, fixing structural cracks, damp, rot or subsidence. Equity release funds can also be used for electrical rewiring, plumbing, or replacing boilers and heating systems.
- Mobility adaptations – including bedroom and bathroom renovations with walk-in showers. You might be looking to add a ramp, stairlift, or widen a doorway or space within your home for a wheelchair or mobility scooter user.
Releasing equity can have an impact on your eligibility for certain means-tested benefits, inheritance, as well as others living in your home. For more information, see our guide How does equity release work?
How to get a lifetime mortgage
If you’re looking for a lifetime mortgage to fund home improvements, always get advice from a qualified mortgage adviser. Releasing equity from the value of your home can be complicated, so you need to understand any associated risks. We also recommend speaking to an independent financial adviser, so you can check the potential impact on your estate.
At Warwickshire Mortgages, we can help you navigate the complexities of equity release and we can help you arrange a lifetime mortgage. We’ll liaise with lenders on your behalf and explain all your options, so you can make an informed decision. Please be aware that we don’t advise on home reversion plans.
Thinking about using equity release for home improvements? Book a free, no-obligation chat with our expert team.