What’s the Maximum Amount of Equity Release?
There are many different types of equity release products on the market. They all have their own maximum equity release amounts, meaning that there are caps to how much you can borrow against your house for these purposes. Enter details find out the maximum amount of equity you can release.
If you are considering getting an equity release for any reason, then the most important consideration is your personal financial situation. The maximum amount of money that can be unlocked from your home in return for paying off some or all of your mortgage is not going to change this; it will simply make things easier if you know where the limits lie when choosing a product. You need to consider how much money you want and whether it would be worth taking on more debt than necessary over knowing exactly what level of borrowing power you have available right now.
Also, bear in mind that the equity release market is constantly changing, so the products and their associated maximum equity release amounts can also change over time.
Another thing to keep in mind is that the total amount you can borrow will be based on the value of your home. The more equity you have in your property, the more money you can potentially release.
To give you a better understanding of what is available on the market, here are some examples of maximum equity release amounts for different products:
Lifetime mortgages: these allow homeowners to borrow a set percentage of their home’s value, which is then repaid either as a one-off lump sum or through regular payments over time. The typical maximum equity release amount with this product is around 55% of your home’s value.
Home reversions schemes: with this type of scheme, you sell all or part of your home to the provider in return for a lump sum of money. The maximum equity release amount is typically around 70%
Residual or home-owning schemes: these are similar to lifetime mortgages in that you take out a loan, but the provider also takes an interest in your property (typically up to 50%) and will sell it once all loans have been repaid. You can usually borrow between 60%
And finally, shared ownership products: this type of product allows homeowners who cannot afford their own homes on the open market to buy part of them instead. With most providers, they will not lend more than 25%. This means that you could potentially get access to up to 75%, depending on how much initial deposit you put down for the purchase price.