You’ve released equity but you want to access more of the money in your home… can you take out another plan? Mark Gregory explains
The Question
I’m 78 and recently lost my wife. Around 10 years ago my wife and I took out an equity release plan on our bungalow. It was quite basic, and we took out a lump sum for £70k of our home which was then valued at £325,000.
The cost of the funeral and caring for my wife has drained all my resources and I’d now like to release equity again. My question is can I do this for a second time? If so, do I need to use the same lender? And, finally, my friend who works in finance told me the market has evolved, and I may be able to find some better rates and more flexible plans – is this true?
My home was worth £325,000 in 2015 and is now likely to be valued at around £500,000 so I am hopeful this will make a difference. Thank you for your help and advice.
Mark’s Answer
Firstly, I’m truly sorry to hear about the loss of your wife. It’s completely understandable that, during such a difficult time, financial matters can feel overwhelming. Thank you for sharing your situation – let’s look at how equity release could help you now.
From what you’ve described, it sounds like you took out a Lifetime Mortgage – the most common form of equity release – where you retained full ownership of your home, and the lender provided a lump sum secured against the property.
If so, you may well have two potential options today. These are as follows:
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Borrow more from your existing lender
Many lifetime mortgage providers offer what’s known as ‘further advance’ borrowing, which allows you to release additional funds from your existing plan subject to your age, property value (which has risen significantly), and current lending criteria. This route can sometimes be quicker and involve lower setup costs.
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Remortgage to a new equity release plan
Given the rise in your property’s value (from £325,000 to around £500,000), and the fact the market has evolved significantly in recent years, your friend is absolutely right – today’s plans are more competitive and flexible than ever before.
A remortgage could potentially give you:
- Access to a higher lump sum
- A lower interest rate
- Additional benefits like drawdown facilities, interest payment options, or inheritance protection
What’s the best option?
That depends on your current plan’s terms and your future goals. The best first step is to have an expert adviser do the following…
- Review your existing plan – there may be early repayment charges that make this move prohibitive – so best to discuss with an adviser.
- Compare the benefits of staying put versus switching – our advisers can provide a full switch analysis to see which is the most viable option
At Equity Release Supermarket, our equity release advisers do exactly this, all without any obligation or upfront cost. You’ll only pay an advice fee if you decide to proceed with a new plan and everything completes to your satisfaction.
So yes, not only can you release equity again, but you might also unlock better value from your property than ever before. We’d be happy to guide you through your options and help you make an informed decision for this next chapter of life.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
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