Equity Release Advantages and Disadvantages

Every single financial decision you make throughout your life will have advantages and disadvantages, and Equity Release is no different. So is equity release a good idea? Well, before making a final choice about whether or not an Equity Release plan is right for you, it’s important to be aware of all the pros and cons.

Is Equity Release right for everyone?

Equity Release may not be the perfect option every time. So at Giraffe Equity Release we take the time to ensure that any decision you make is right for you and your individual circumstances.

This is why we always suggest that you involve your family in the entire process (if you want to, of course), that way the impact of equity release can be discussed with those you care about. And if our advisers feel that Equity Release is not the right option for you, they will let you and your family know straight away.

To help you decide whether an Equity Release plan may be a good option for you, we recommend you read all the advantages and disadvantages we’ve listed below.

The Advantages

  • You continue to live in your own home, rent free, for the rest of your life or until you move into permanent residential care.
  • The ‘no-negative equity guarantee’ means that you will never have to repay more than the value of your home and your estate will never owe more than the property is worth when it is sold.
  • The tax-free cash that you release can be used for anything you like from home improvements, clearing a mortgage or debt, to the holiday of a lifetime.
  • With some plans, there are no regular payments to make, the option is yours.
  • The flexibility of modern equity release plans means that you can release the money as a lump sum, or a lump sum with a drawdown facility.

The Disadvantages

  • The value of your estate will reduce and the amount you can pass on in inheritance via your estate will therefore also decrease.
  • Your entitlement to certain state benefits may be affected.
  • If you wish to repay or end the plan early there may be financial penalties in doing so.
  • Some lifetime mortgages are paid back with compounded interest meaning that over the longer term the amount you owe can grow quite quickly.
  • You should always consider the alternatives. Equity release is just one possible option for acquiring tax-free money from your home; downsizing or taking on a lodger are two other options.

Find out more about Equity Release

If, having read all those advantages and disadvantages, you would like to know more about Equity Release, just get in touch with the Giraffe Equity Release team today. We’ll be happy to answer any questions or concerns.

In fact, our expert advisers are always here to help you make an informed decision by giving you open, honest, impartial advice. And discussing all the pros and cons of Equity Release mortgage plans, and how they impact your individual situation.

This is a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.

Giraffe Equity Release is here to provide you with independent, impartial financial advice and comprehensive customer support. Our fees are tailored to your individual requirements and are based on the products you need. You will only be charged once your plan completes and the precise amount will depend on your personal circumstances.

To understand the full features and risks, simply ask us for a personalised illustration.

To find out more about any of the Giraffe Equity Release products and services mentioned here, please call us on freephone 0800 622 6414 or request a call back.

If you are considering equity release we strongly recommend that you read our ‘Advantages and disadvantages of Equity Release’ page carefully.


Call Giraffe equity release on 0800 622 6414 or send an enquiry here