Equity Release Northern Ireland - Lifetime Mortgage Near Me

Lifetime Mortgage & General Equity Release Advice in Northern Ireland
Reviewed by Tom Philips

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Equity Release Northern Ireland & Near Northern Ireland

Have you heard of the term ‘equity release’ but simply don’t know what it means, or how it works?

Well, if this is you then you are not alone.

In fact, studies have shown that the majority of people across the UK and Northern Ireland do not understand how equity release works and believe a number of myths about equity release.

Equity release is actually a really straightforward process.

It works by allowing homeowners the opportunity to release some equity in their home, whilst allowing them to remain living in their property.

They do not need to sell their property in exchange for equity and their lender will never ask them to sell or move out at any point [1].

Most people release equity from their home in Northern Ireland to pay for home renovations, their loved ones’ University fees or house deposits.

Others pay off the remaining few thousand pounds on their mortgage, or to enjoy a nice holiday.

The best thing about equity release is that it isn’t like traditional mortgages. With traditional mortgages, you have to make monthly mortgage repayments.

However, with equity release plans there are no monthly mortgage repayments. Instead, you repay the loan in full once you pass away or alternatively move into a care home [1].

Once you pass away, your next of kin will then put your house on the market. They have six-to-twelve months to sell the property and once it is sold, the money from the sale will go to paying off the loan.

What are equity release plans?

An equity release plan in Northern Ireland is an agreement drawn up by your lender and solicitor which outlines the terms and conditions of your equity release loan.

There are lots of different types of equity release plans used throughout the UK, with the two main types of plans known as lifetime mortgages and home reversion plans.

You can also opt for a lump sum plan, which gives you access to the entire sum of money all at once. Alternatively, you can opt for a drawdown plan, which means that you will receive smaller amounts of money each month or each year.

What is an equity release lifetime mortgage?

There are two main equity release plans used throughout the UK and Northern Ireland. The most popular form of equity release is a lifetime mortgage.

This type of equity release plan allows you to take out anywhere between 20% and 80% of the value of your home, without asking you to sell up or move out.

You do not need to pay off your equity release lifetime mortgage until you pass away or move out of the property for health reasons. You can opt to do this, in an attempt to reduce the amount of compound interest charged on your loan.

What is an equity release home reversion plan?

Home reversion plans in Northern Ireland are another popular option, which involves selling part of your property to a lender in exchange for money.

This could be as little as 10% or as much as 90%, depending on how much equity you want to receive.

You will sell your property to your equity release lender for less than the market value, meaning that you won’t make as much money as if you were to sell it on the normal housing market.

When you opt for a home reversion plan, you will only receive the percentage of your property that you still own when you come to sell. Therefore, your loved ones will receive less inheritance.

How does equity release Northern Ireland differ from the rest of the UK?

You are able to opt for an equity release plan in Northern Ireland, just like the rest of the UK. The two main equity release advisers are Just and Aviva and there are significantly less options in Northern Ireland than there are throughout the rest of the UK [2].

Other than that, there are no real differences between equity release Northern Ireland and the rest of the UK.

You will need to ask an adviser for advice and support and will also have to engage a solicitor to work on your behalf. You can still decide between a lump sum plan and a drawdown plan and you are also able to make early repayments if you choose to do so.

Equity release Vs remortgaging in Northern Ireland

Lots of people across Northern Ireland get equity release and remortgaging confused.

So, let’s be clear; equity release is when you take out a new loan and plan, whereas remortgaging is when you change the terms and conditions of your current, existing mortgage [3].

The main difference when it comes to taking out an equity release plan and remortgaging is that there are no age restrictions to remortgaging, whereas there are with equity release.

With most equity release plans, you have to be aged 55 years or over.

Likewise, with equity release plans there are no mandatory monthly payments involved. However, when you remortgage a property you will have to continue paying a monthly mortgage fee, which will more than likely increase [3].

With equity release plans, you will remain the owner of your property until you pass away or move into a care home, this is guaranteed as long as you continue to meet the terms and conditions of your equity release loan.

However, when you remortgage a property, you have to keep up with your monthly mortgage repayments, otherwise, your house will be repossessed.

Whilst both types of loans will reduce the overall value of your estate and equity, you are able to spend the money on whatever you want.

With equity release plans, you are able to choose between a lump sum plan and a drawdown plan, whereas with remortgaging you will receive the money in one large, lump sum.

Typically, people are able to release more money when they take out an equity release plan than if they were to remortgage their property, although this does depend on a number of factors including the value of the estate, the homeowner’s age, the condition of the property and the homeowner’s health.

How much can I borrow with equity release Northern Ireland?

The exact amount of equity you are able to release from your property depends on a number of different factors and criteria, including your age, your health as well as the condition and the value of your property and estate.

However, most people across Northern Ireland are able to release anything between 20% and 60% of the value of their home.

Most equity release advisers will use an equity release calculator to determine exactly how much money you are able to release from your home.

Remember, you will be charged interest on the amount that you release. This means that you should only really ever release as much money as you need.

Releasing too much equity might mean that you end up paying interest on money that you didn’t invest or put to use.

Can I use equity release to pay off my mortgage?

Yes, you are able to use your equity release money to pay off your existing mortgage.

However, some lenders across Northern Ireland won’t accept you if you still have a pre-existing, traditional mortgage with over a certain amount left to pay.

Therefore, if you do meet the lending criteria with a pre-existing traditional mortgage, then you must pay off this mortgage once you receive your equity release funds.

By doing so, you will no longer have to make any monthly payments and won’t have to stress about rising interest rates.

How much does equity release cost in Northern Ireland?

Like with traditional mortgages, you will have to pay a number of set-up fees during your equity release application.

For example, you will have to pay for the cost of a solicitor, as well as a home valuation.

In Northern Ireland, this could cost between £1,000 and £2,000 depending on how expensive your solicitor is.

Remember, you will be charged interest on your loan. This will be charged on a monthly or yearly basis, depending on the terms and conditions of your contract.

This interest will continue to grow year on year.

This interest will quickly compound, meaning that over time, you will start to pay interest on your interest.

This means that the amount of money you owe will end up snowballing each year, until you pass away or move into a care home.

Whilst you will need to hire an equity release adviser, they don’t always charge you directly. If they do, then they will usually ask for their fee after you have received your equity release money.

Usually, your equity release lender will charge your lender a percentage of your equity release take-home money, instead of charging you.

What are the best equity release interest rates?

The below table is valid as of February 2024:

Provider	MER	Type	Product
Aviva	7.68%	Fixed	Drawdown
Aviva	7.68%	Fixed	Lump sum
Pure Retirement	6.03%	Fixed	Drawdown
Pure Retirement	6.03%	Fixed	Lump sum
Just Retirement	6.66%	Fixed	Drawdown
Just Retirement	6.66%	Fixed	Lump sum
Canada Life	6.73%	Fixed	Lump sum
Canada Life	6.73%	Fixed	Drawdown

As you can see, Pure Retirement is offering the best rate of interest on equity release at 6.03%. Interest rates will also vary depending on your circumstances, as well as whether you opt for either an income or a lump sum of cash.

How long does equity release take to process in Northern Ireland?

If you’ve ever applied for a traditional mortgage, then you will know that applying for any type of mortgage takes a number of weeks to process.

Usually, it takes approximately 8 weeks to process an equity release application in Northern Ireland, but it can sometimes take up to twelve weeks to process a particularly complex equity release application.

Firstly, you will need to engage an equity release solicitor. You will need to have a few calls with them and potentially a few meetings in person.

They will then work on your application over a number of weeks, keeping you in the loop at every stage.

Remember, when it comes to deciding if equity release is for you or not, there is no time pressure or rush.

No qualified equity release adviser will ever put any pressure on you to make a decision, as you need to be sure and confident in your decision.

What is a loan-to-value ratio and how does it impact equity release?

A loan-to-value ratio (LTVR) is a term used throughout the financial, mortgage and loan industry in Northern Ireland and the rest of the UK to explain the percentage that you can borrow as a mortgage against how much you pay as a deposit or what your house is worth.

For example, if you apply for a mortgage worth £180,000 on a house that you bought for £200,000 then your loan-to-value ratio would be 90%.

It is important to understand what your loan-to-value ratio is and how it will affect you, as the bigger your LTVR is, the more you will owe. For example, if you are able to put a larger deposit down, your LTVR will reduce as you will owe less [4].

When it comes to equity release Northern Ireland, the lower your LTVR is, the higher your equity is in a property.

Most equity release clients who opt for lifetime mortgages are able to release anything between 20% – 80% of the value of your home.

If you opt for a home reversion plan, then you can release anything between 10% – 90% of the value of your home, but you will need to sell a percentage of your property in order to do so [4].

What can I use equity release Northern Ireland for?

The reason why equity release loans are so popular across Northern Ireland is because you are able to release a significant amount of money and there are very few restrictions on how you spend this money.

In fact, most people end up spending their money on home renovations and home improvements.

This could be an extension or a new kitchen, or some changes around the home which make the property more comfortable to live in.

This could mean installing handrails or ramps around the house. After all, you’re more than likely about to spend the rest of your life living at the property.

Alternatively, you can spend your equity release money on treating others, such as children to grandchildren. You can put some money towards someone else’s house deposit, or pay for their University fees outright.

Whilst these are all great ways of spending your equity release money, others choose to simply treat themselves to a few fancy holidays or a nice new car!

Realistically, there is no right or wrong way to spend your equity release money. However, equity release advisers do prefer it if you invest your money in some way, such as paying for home improvements.

Whatever you want to spend your money on, you must be open and honest with your equity release adviser, as how you plan on spending your money will impact what type of equity release plan you apply for.

Can I use equity release to pay off an interest-only mortgage?

Yes, you are able to repay an interest-only mortgage with the money you receive from your equity release plan in Northern Ireland. Lots of homeowners have interest only mortgages, which need to be repaid in full by the end of their mortgage term [5].

Interest-only mortgages are when you only have to pay the interest on your loan each month, instead of paying off your actual loan amount. You have to pay this back once your mortgage has ended.

This is a great option for anyone who expects to have a significant amount in savings by the time your mortgage ends, in 25 or 35 years time. Lots of people opt for this as it keeps their monthly payments down [5].

However, some people get to the end of their mortgage and simply do not have enough in savings in order to pay off their interest-only mortgage. This is where equity release steps in.

You can release equity from your home and use this money to pay your final payment. You will then be mortgage free and won’t have to worry about any monthly mortgage payments.

Can I use equity release for a divorce settlement?

Unfortunately, lots of people across Northern Ireland get divorced in later life. This often throws up lots of issues and complications, especially when it comes to your finances.

This is why lots of people who are going through a divorce opt for equity release.

Releasing equity from your home to help to settle a divorce settlement is a really popular way of coming to an agreement.

Releasing equity from the marital home can be confusing, but it can also be a great way of ensuring that one member of the party can continue to live at the property, whilst the other has enough money to buy a new property outright, from the release.

This means that both parties are able to gain some security, as long as they both enter this agreement amicably.

If you are looking to release equity to help to settle a divorce, then make sure you talk to a qualified advisor and solicitor.

Can I use equity release for home improvements in Northern Ireland?

Using equity release to pay for home improvements is always a good idea. Whilst you might be reducing the amount of equity inside your home, you will be increasing the value of your home by making improvements around the house.

You could invest in a new kitchen, an extension or an improved garden. Investing money in these things will most likely increase the saleability and value of your home, which means that you might be able to leave some inheritance to your next of kin and loved ones once you pass away and the property is sold.

Remember, that once you take out an equity release loan in Northern Ireland, you will most likely remain living at the property until you pass away to move into a care home.

This means that if you are going to make home improvements, then make sure you’re being mindful when it comes to your future needs and accessibility.

Can I use equity release to purchase a buy to let property in Northern Ireland?

Depending on which lender you opt for, you might be able to purchase a property with your equity release money. This is a great way of making your money work for you, as there are no monthly payments with an equity release loan, but you will be receiving money from your rental income.

If this is how you plan on spending your equity release money, then make sure that you inform your solicitor and adviser of your plans beforehand.

You are also allowed to release equity from a buy-to-let property in Northern Ireland, but you might find that you are only eligible to do so using a limited number of lenders.

Can I use equity release to pay for care home costs?

Yes, you are able to pay for care costs with your equity release money. Some people who release equity from their home in Northern Ireland find that once they release equity from their home, their eligibility for care costs changes.

This is why lots of people pay for their at-home care costs with their equity release money. However, you must ensure that you are able to care for yourself or your loved ones properly at home, otherwise, you will have to move into a care home. If you do move into a care home, then you will have to repay your loan in full.

Whilst you are technically allowed to pay for your care costs, this isn’t always advisable. This is because at home care costs can be incredibly expensive and once your equity release money is gone, it is gone.

Likewise, care costs can be subsidised by your local Council, depending on your financial situation and care needs.

Is equity release in Northern Ireland safe?

Equity release products across Northern Ireland are now regulated by the Financial Conduct Authority (FCA) and the Equity Release Council.

This means that all lenders, products, advisors and solicitors must uphold their standards, be transparent and act in the best interests of their client(s).

Likewise, when you opt for equity release, you will never be asked or forced to sell your property until you pass away or move into a care home.

So, you will get to remain living in your home for as long as you want, without the worry or fear of having to leave.

Whilst most equity release plans are safe, it is important that you do your research before applying for an equity release loan. If you live with other people, you must ensure that they are onboard with your equity release plans.

The main downside to equity release is that you won’t leave your loved ones as much inheritance as you might want to. As you will be charged interest on your loan, this quickly compounds over the years and increases your loan amount significantly.

Equity release and negative equity

According to the Equity Release Council, all equity release plans across Northern Ireland benefit from the No Negative Equity Guarantee.

Remember, once you pass away or move into a care home, your next of kin(s) will have to sell your house and pay off the loan in full.

Most people’s property sells for more than they bought it for, which means that the sale of the property covers the cost of the loan.

However, some people’s properties might decrease in value, meaning that it no longer covers the loan amount.

The No Negative Equity Guarantee ensures that even if your house decreases in value over years, your loved ones won’t find themselves responsible for paying off the rest of your loan.

What is the Equity Release Council?

The Equity Release Council has operated since 2001 and acts as the industry body across Northern Ireland the UK for the equity release industry. Lenders, advisors and solicitors can all become members of the Equity Release Council.

The Equity Release Council maintains high standards within the industry and safeguards its members and the public. Thanks to the Equity Release Council, more and more people are opting for equity release as they feel confident in lenders, advisers and products.

They ensure that all interest rates are fixed, all contracts include a no negative equity guarantee and that you will never be asked to move house or sell up.

Can Equity Release Affect State Benefits across Northern Ireland?

Yes, taking out an equity release loan in Northern Ireland might have an effect on your eligibility to state and means-tested benefits. This includes things such as income support, job seekers allowance and pension credit.

This is because when you apply for means-tested, state benefits, the Government measures your capital, income and savings to determine what you do and do not qualify for.

Once you release equity from your home, this might put you over the savings threshold, meaning that you no longer qualify for some means-tested benefits.

However, there are some benefits which are not affected by equity release. For example, disability benefits are not affected by equity release, nor is personal independence payment (PIP).

Can I Still Sell My House in Northern Ireland?

Yes, you are still able to sell your house if you take out an equity release plan in Northern Ireland. Lots of people avoid taking out an equity release plan due to the aspect of having to live in the same house for the rest of their lives.

Whilst the idea behind equity release is that you will remain living in your house until you pass away or move into a care home, this does not mean that you aren’t able to move home in the future should you need or want to.

However, there are a number of terms and conditions when it comes to selling your house and buying a new one.

For example, your lender must accept your new property under their terms and conditions. If you downsize your property, you might have to repay a portion or percentage of your loan early.

Can Equity Release Be Repaid Early?

Yes, if you opt for a lifetime mortgage then you might be able to repay some of your loan early, depending on the terms and conditions of your contract. However, most equity release products simply aren’t designed to do this.

Instead, most equity release plans are supposed to last for as long as you live or are able to live in your home. This is why repaying your equity release loan early isn’t always the best option, as you might be charged early repayment fees.

This can be avoided in some circumstances. For example, if you want to repay your loan early because you want to move house, then it might be easier to port your equity release loan to your new property, as long as your lender accepts the new property.

How Does Equity Release Work When You Die?

Lots of people avoid taking out an enquiry release plan in Northern Ireland because they are worried about what will happen to their money and inheritance once they pass away. However, the process is actually incredibly easy.

When you pass away, your next of kin will sell your house. The proceeds from the sale of your house has to be put towards paying off the equity release loan.

Usually, houses increase in value significantly over time. This means that the proceeds from the sale of your house will almost always cover the cost of your equity release loan and then some more.

This means that your loved ones might receive a small amount of inheritance, although the focus will be on paying off the loan before anything else.

If your house does not cover the cost of your loan for whatever reason, then your lender will have to pay off whatever the difference is.

Once you pass away, your loved ones will have anything between six to twelve months to sell your house and pay off the loan.

Can Equity Release Be Taken Out For Tenants In Common?

Yes, you are still eligible for equity release even if you are tenants in common with someone else or a joint owner.

Tenants in common is a term which explains when a couple or partnership each own a set percentage of the property, which could be split 50/50 or however the owners of the property see fit.

You can also write a will, which will state exactly who your share of the property goes to should you pass away.

This could be the other owner or a child, friend or grandchild. If you or your partner are confused about whether you are tenants in common or joint owners, then you can always check your title deeds on the property.

Can Equity Release Be Taken Out For Leasehold Property?

According to the Equity Release Council, it is possible to take out an equity release plan on a leasehold property if you live in Northern Ireland. Not all lenders will allow this, although it is always worth checking with your equity release adviser.

If you do own a leasehold property and want to consider equity release as an option, then you will need to check to see how long is left on your lease.

Some lenders will only accept leasehold properties for equity release if the property has at least 60 – 80 years left on the lease.

If your property has less than this left on your lease, then you might need to renew your lease in order to qualify for equity release.

You will also need to get your house surveyed, in order to determine whether or not the property is in a saleable condition. Afterall, their main objective is to make their money back.

If you are unable to extend the leasehold for whatever reason, you may be able to purchase the freehold of your property as an alternative option.

However, this will cost you money which you will need to take into account considering all the other costs associated with taking out an equity release plan [2].

Can I Take Out Equity Release Under A Power Of Attorney?

Put simply, yes you are able to release equity on a property in Northern Ireland if you are the power of attorney.

To be a power of attorney means that you are given the legal authority to deal with another individual’s finances and legal decisions.

There are many different types of power of attorney, which all give different rights over an individual and the decisions that you are able to make for them.

Whether you are able to take out equity release as a power of attorney or not depends on a number of different factors, including what type of power of attorney you are, when the power of attorney was signed and whether court protection was involved and in place [6].

Most equity release lenders will only accept you as a power of attorney if you meet their lending criteria and come with a court protection.

You have to be aged at least 18 years old in order to qualify to be someone’s power of attorney and must display complete mental capability.

Which Equity Release Company in Northern Ireland Is Best?

Finding the right equity release company for you isn’t always easy or straightforward. Each lender has different qualification criteria and offers different plans with different terms and conditions. In fact, it can all get a bit overwhelming at times.

Below is a list of different equity release companies, offered to over 55’s across the UK. It is also important to understand that you might not be able to apply for all of the below lenders if you live in Northern Ireland.

1. Equity Release With Aviva in Northern Ireland

Aviva has been offering equity release for a number of years and offer lifetime mortgages to anyone aged 55 or over who qualifies. They also offer expert advice, from FCA-regulated advisers.

This advice from Aviva will be able to draw up your illustration, where you will be able to see exactly how much you will owe over the years. This is because all interest rates are fixed with Aviva.

They claim to be the UK’s number one provider for equity release and have now won many awards for their offering.

They now have over 162,000 customers who have all taken out a lifetime mortgage. They’re also long-standing members of the Equity Release Council and are fully regulated by the Financial Conduct Authority.

2. Equity Release With Canada Life in Northern Ireland

Canada life is another equity release lender with a great reputation. They offer both lifetime mortgages and buy-to-let mortgages.

Their interest rates are both competitive and fixed. You are also able to make voluntary repayments each year with Canada Life, which you will not be charged for.

This is a huge advantage, as early repayment charges can cost a significant amount of money.

Like Aviva, they are also members of the Equity Release Council and offer financial advice to everyone who is considering equity release with Canada Life [8].

3. Equity Release With Lloyds Bank in Northern Ireland

Lloyds Bank offers equity release loans through Scottish Widows. This means that they are able to offer their clients lifetime mortgages to anyone aged between 55 and 85 years old who owns a freehold property worth at least £70,000.

If you want to release equity with Lloyds Bank, then call their helpline which will put you through to Scottish Widows.

An equity release adviser from Scottish Widows will then get in touch with you to discuss the pros and cons of taking out an equity release loan [9].

4. Equity Release with Age Partnership in Northern Ireland

Age Partnership claims to have helped over 60,000 people release equity from their home across the UK. Age Partnership places a huge emphasis on understanding your financial circumstances and ensuring that equity release is the right option for you.

Age Partnership also works with a range of lenders to find you the very best deal and plan going forward.

They will consider at least one plan from each lender and assess all features and qualification criteria against your application and circumstances.

Age Partnership offers free, initial advice from qualified advisers. They will only charge you if you go ahead with the plan.

This fee comes to £1,895 which becomes payable once you are sent your equity release money.

5. Equity Release with Just Retirement in Northern Ireland

Just are a less well-known equity release and financial advice provider. They offer two main types of equity release, lifetime mortgages and home reversion plans.

They provide themselves on being a specialist financial services group that focus on retirement income products for over 55’s.

Just Retirement is a fast-growing company that already now has at least 65,000 customers up and down the country and has helped pensioners across the UK release a total of £6.5 billion from their houses [10].

6. Equity Release with Key Group in Northern Ireland

Key Group is a well-established company which offers a range of financial products through More2Life.

The Key Group pride itself on being later life lending experts who specialise in equity release products. They offer their own equity release advisers,

They work with More2Life which acts as their leading lender. They offer a range of financial products, including lifetime mortgages.

They have now helped thousands of customers release over £167 million in equity.

7. Equity Release with Legal with General in Northern Ireland

Legal and General partner with Key Partnerships and their own financial advice service to offer equity release loans in the form of lifetime mortgages to offer 55’s. They do not charge for their advice and have won numerous awards for their offerings.

Legal and General offer a Flexible Lifetime Mortgage, which allows you to release a tax-free amount from your home with no mandatory repayments until after you pass away or move into a care home.

They also offer an Optional Payment Lifetime Mortgage, which allows you to repay a percentage of your loan over time. This will reduce the overall loan amount and the amount of interest on your loan.

Legal and General charge approximately £599 as their arrangement fee, which is relatively low compared to other advisers and lenders.

8. Equity Release with Nationwide in Northern Ireland

Nationwide is the world’s biggest building society and prides itself on having over 15 million customers.

Whilst Nationwide have been offering equity release products for a number of years, they have now put a hold on taking on new equity release customers due to demand. They do, however, still offer equity release plans to existing customers.

They have previously offered lifetime mortgages and interest-only mortgages and offer a no negative equity guarantee, downsize protection and a fixed interest rate.

They also allow early repayments up to 10%, meaning that you won’t be charged any early repayment fees up to this threshold.

9. Equity Release with Saga in Northern Ireland

Saga is a member of the Equity Release Council and has offered equity release and other financial products to over 2.7 million people up and down the UK.

They’re a member of the Just Group, which is discussed above.

They offer a very unique feature, called their money-back guarantee. This money-back guarantee ensures that even if you change your mind after taking out your equity release loan, you get all your money back [11].

Saga will also give you £100 cashback if your equity release funds are not transferred over to you and your solicitor within just 40 working days.

10. Equity Release with Sun Life in Northern Ireland

Most of us have seen the Sun Life TV adverts featuring Carol Vorderman. Sun Life has been helping over 55’s across the UK release equity from their home for years and have a great reputation.

They do not offer plans directly. They do however work with Standard Life (a member of Key Retirement Systems) who will offer you advice and will check what plans you are eligible for.

Using An Equity Release Loan Calculator

Using an equity release calculator is a great way of working out how much equity you might be able to release from your home. At Equity Release Warehouse, we have our own equity release calculator our clients can use during the initial stages of their application.

In order to determine how much equity you might be able to release, you will need to determine how much your property is worth. This can either be an estimate, or you can get your home valued.

You will also need to state your age, and the age of anyone else living in your property. You will also be asked what type of property you own, as only traditional properties made out of traditional materials are considered for equity release.

Equity release calculators are a great way of gaining a better understanding of how much money is tied up in your home and how much equity you might be able to release.

Even after speaking to an adviser and completing an equity release calculator, you are under no obligation to take out an equity release loan.

Do I need an equity release solicitor in Northern Ireland?

Yes, if you want to release equity from your home in Northern Ireland then you will need to hire an equity release solicitor in order to proceed and progress with your application.

It usually takes approximately 8 – 12 weeks to process and your solicitor will work throughout these two weeks to ensure that your application is moving in the right direction.

Your solicitor will draw up your contract, look and advise on any potential issues and will also be responsible for sending the money into your account.

Essentially, they work as the middleman between you, your adviser and the lender.

Equity release solicitors will set you back approximately £1,000 – £2,000, which can either be due before you receive your equity release funds or afterwards.

It is always best to hire a specialist solicitor, who specialises in equity release. You should also always choose a firm that has at least a handful of employees.

What are the Equity Release Alternatives in Northern Ireland

There are a number of alternative options available to those living in Northern Ireland if you think that equity release is not for you.

Although the idea of equity release might seem attractive to most, some people might not qualify for an equity release loan. For others, this simply might not be the best solution to their financial troubles.

Below is a list of alternatives that might be worth considering if equity release simply is not the best option for you.

1. Downsizing

Downsizing is a great option if you’re willing to up sticks and move houses. You will sell your property and move to a smaller house, banking the excess money from the sale of your property.

By doing so, you will get your hands on one large lump sum which you will be able to spend however you want.

This is also great for anyone aged 55 or over who lives in a large house, which might not be realistic or suitable for you as you enter your retirement years.

By downsizing, you will likely move to a smaller property with no stairs and a smaller garden to tend to.

2. Extending your mortgage term

Extending your mortgage term might be the best option for anyone who is not old enough to release equity from their home.

Extending your mortgage term means that your monthly repayments will be less, but you will be tied into your mortgage for a longer period of time.

This means that you will pay more interest, too. There are age limits when it comes to extending your mortgage term, as the lender wants to be assured that they will get their money back. You will have to apply to your lender to do so, either directly or through your mortgage adviser.

3. Remortgage your property

Remortgaging your property is when you apply for a new mortgage agreement, but get to remain living in your current property.

This is a great option for those who think that their property is worth more now than when they bought it. This means that you might now be eligible for more deals with more competitive mortgage and interest rates.

4. Getting a part-time job

Getting a part time job is another option for those looking to retire but who need some extra cash to see them through. Lots of retirees get part-time jobs during their retirement! They’re a great way of earning some extra cash whilst socialising and keeping fit and active.

5. A personal loan

Others opt for a personal loan instead of opting for equity release. Whilst personal loans typically have higher interest rates, they’re typically less risky.

For example, by taking out a personal loan and repaying it on a regular basis, you will not be putting your property or your family’s inheritance at risk.