How Much Money Can I Release in 2025?
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- The maximum amount you can access often depends on the plan's terms, your age, and the value of your home, with some providers offering up to 60% of the home's value.
- The amount accessible is calculated based on your property's value, your age, and your health status.
- An increase in your home's value may potentially allow you to access more funds.
- Certain limits for accessing funds exist, such as your age, health status, and your property's value, which are set by the provider.
- Factors that influence how much you can access include your age, your property's value, health status, and the specific terms of the scheme.
Loans are not easy to come by in later life, which is why you may be wondering how much money you could borrow with equity release?
With a total lending value of £6.2bln in 2022 and the average lump sum amount reaching over £128,000 in the 4th quarter,1 equity release certainly has it's place in the later lending realm.
But what does that mean when it comes to your personal retirement finances?
In This Article, You Will Discover:
SovereignBoss has delved into all the details regarding how much you can borrow with equity release.
Therefore...
How Much Can I Borrow Through Equity Release?
The amount you can borrow through equity release will differ for everyone as it is based on your age, property value, and several provider and plan-specific factors.
With a lifetime mortgage, you could generally release between 20% and 60% of your home’s value.2
What Factors Determine How Much I Can Borrow Through Equity Release?
Factors that determine how much you could borrow through equity release are mainly your age and property value.
But as with most things, there is more to it than that.
Other factors that could influence the amount you can borrow are:
- The type of property you own
- The location of your property
- Future zoning plans in your area
- Your health
- Any mortgage or loan existing against your home
- Whether you are taking out a single or joint plan
These factors and your financial goals will be considered during a consultation with a professional equity release mortgage broker or advisor.
It is their objective to find a plan that suits your current circumstances and future plans.
What Is the Minimum Amount I Can Release?
The minimum amount you can release with a lifetime mortgage is often determined by the provider.
Some providers require a minimum lump sum release of £10,000,3 whilst others may mandate an initial release of at least £15,000.4
What Is the Maximum Amount of Equity I Can Release from My Home?
The maximum amount of equity you can release from your home will depend on how much your home is worth and what your provider’s terms are.
Additionally:
Your age will be a factor in determining the maximum you may be able to access.
As already mentioned, the range for a lifetime mortgage falls between 20% and 60% of your home’s value, but lenders may also impose a specific upper limit in terms of the amount you may be able to access.
Some providers will cap the maximum loan amount at £1mln.5
Although it could be tempting to release as much as you qualify for, you must consider the impact doing so could have on your estate upon your passing.
If you want an idea of how much you can release in equity, you can use our free equity release calculator to obtain an approximation.
Discuss the best plan of action with your equity release mortgage broker or advisor.
Example of How Much Equity You Could Release Based on Your Age and Home Value
As an example of how much equity you could release based on your age and home value, look at the below figures provided by the Daily Telegraph.6
If you are 55, and your home is valued at £500,000, you could potentially release up to £107,000.
If we increase the homeowner’s age to 65, the same home could potentially qualify for a loan of up to £201,000.
Please note that these figures are purely for indicative purposes and do not necessarily reflect the LTV you may actually achieve.
An array of factors influence your final qualifying amount and will need to be discussed in detail with your advisor, broker, and provider.
Common Questions
What is the Maximum Amount I Can Borrow with Equity Release?
How Is the Amount I Can Borrow with Equity Release Calculated?
Can I Borrow More Money If My Home's Value Increases?
Are There Any Limits on How Much Money I Can Borrow with Equity Release?
What Factors Influence How Much I Can Borrow with Equity Release?
In Conclusion
Equity release is not an exact science, and each loan is analysed individually.
Two people of the same age with homes of the same value will not necessarily be able to borrow the same amount through equity release.
There are too many variables to consider, such as your age, your health, the value and location of your property, and the features available on different plans.
How much money you could borrow with equity release can only properly be determined by a professional, so speak to an equity release mortgage broker or advisor before going any further.