Using Equity Release to Pay Off Your Mortgage: What You Need to Know

If you’re a homeowner aged 55 or over, you may be struggling with the burden of monthly mortgage repayments. One increasingly popular option is equity release, which allows you to free up tax-free cash from your home to clear your outstanding mortgage balance – giving you peace of mind and financial freedom.

What is Equity Release?

Equity release lets you access the wealth tied up in your property without having to sell or move out. The most common form is a lifetime mortgage, where you borrow against the value of your home. You remain the legal owner, and the loan is usually repaid when you pass away or move into long-term care.

Can You Use Equity Release to Pay Off a Mortgage?

Yes – many homeowners use equity release specifically to clear their existing mortgage. By doing so, you:

• Remove the stress of monthly repayments.
• Simplify your finances in later life.
• Stay in your home without downsizing.

The equity release provider will typically require your mortgage to be cleared in full, either with the released funds or a combination of equity release and personal savings.

Benefits of Paying Off a Mortgage with Equity Release

• No More Monthly Payments – You can stop worrying about repayment schedules and interest charges from your lender.
• Boost Your Retirement Income – Freeing yourself from mortgage obligations leaves more money for day-to-day living.
• Stay in Your Home – There’s no need to downsize to clear your mortgage.
• Flexible Options – Some equity release plans let you make voluntary payments to control the growth of interest.

Things to Consider

• Interest Roll-Up – Unlike a traditional mortgage, interest is added to the loan over time.
• Impact on Inheritance – Equity release reduces the value of your estate.
• Eligibility – You usually need to be 55+ and own a property in the UK worth a minimum amount.
• Specialised Advice – Always speak with an equity release adviser to ensure it’s the right decision for you.

Alternatives to Equity Release

• Downsizing to a smaller property.
• Using pension savings.
• Negotiating with your current mortgage provider.

Is It Right for You?

Equity release can be a lifeline if you’re looking to enjoy retirement without the stress of mortgage repayments. However, it’s not suitable for everyone. A qualified adviser can help you compare options and decide whether equity release is the best way to clear your mortgage.

Key Takeaway

Using equity release to pay off your mortgage could offer you financial freedom, security, and peace of mind in retirement. By eliminating monthly payments, you can focus on enjoying life in the home you love.

If you’re considering equity release in Exeter, Plymouth, Torbay, Saltash or anywhere across Devon & Cornwall, contact a local broker today and take the first step toward unlocking the value of your home.

Alternatively follow the link below to the Equity Release web page at Stuart Ash Mortgage Services

Equity Release Advice – Stuart Ash – Mortgage Services

‘Your home may be repossessed if you do not keep up repayments on your mortgage’

A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate