Freephone 0800 411 8668


Equity release to fund home improvements

Key Takeaways

  • Equity Release Is a Flexible Way to Fund a Range of Home Improvements
    Equity release can help fund everything from urgent repairs to dream renovations using tax-free cash from your home.
  • You Can Choose a Plan That Fits Your Lifestyle and Goals
    Whether you choose a home reversion plan or lifetime mortgage, there are a range of flexible options to suit your lifestyle and goals.
  • Ideal for Later-Life Renovations Like Accessibility Upgrades
    As mobility needs change, equity release can fund accessibility upgrades like stair lifts or walk-in showers so you can stay in your home longer and safer.
  • Energy-Saving Improvements Can Pay Off Long Term
    Equity release can help cover the upfront cost of making your home more energy efficient including insulation, solar panels, and new windows.
  • A Specialist Adviser Makes All the Difference
    Our specialist advisers at Bower Home Finance makes the process easy. Try our free equity release calculator or book a no-obligation chat today.

If you’re looking to make some changes to your home, you might have considered using equity release to fund home improvements. Equity release can provide extra cash, giving you the flexibility to pay for home improvements such as renovations, repairs, or upgrades.  

From essential repairs and maintenance to making your home more accessible, equity release can help you pay for home improvements by allowing you to release equity tied up in your property in the form of tax-free cash. 

Can you use equity release for home improvements?  

Yes, you can use equity release to fund your home improvements, including essential home repairs, energy saving improvements, and home adaptations to allow you to remain in your property for as long as possible. Planning your home improvement project is important, and equity release can provide the funds needed to carry out renovations or upgrades to your home. 

New windows being fitted to improve home efficiency, being funded with equity release

The most common ways people use the funds released from equity release for home improvements include: 

  • Essential maintenance & home repairs 
  • Energy saving improvements 
  • Aspirational projects 
  • Accessibility improvements 

By working with a specialist equity release adviser, you can learn more about the options available across the market and receive tailored advice to match your specific needs and circumstances. 

How can I use equity release to fund home improvements? 

If you’re looking to release equity for home improvements, you’ll need to work with a specialist equity release adviser. Different lenders offer a range of equity release products, so your adviser can help you find the most suitable option for your needs. 

At Bower Home Finance, our specialist equity release advisers will work with you throughout the equity release process, explaining everything you need to know and answering any questions you, or your family, might have. Equity release is only available on your main residence, meaning the property you live in as your primary home. 

The amount of equity you can release will be determined by a few factors including your age, health, lifestyle, and the value of your home. To find out how much equity you could release from your home, why not try our free equity release calculator

Understanding the types of equity release plans 

When considering equity release, it’s important to understand the two main types of plans available: lifetime mortgages and home reversion plans.  

Lifetime Mortgage 

A lifetime mortgage is a type of long-term loan secured against your home that allows you to borrow money against the value of your property, with the loan and any interest typically repaid when the property is sold, usually after the last borrower passes away or moves into long-term care. This option enables you to retain full ownership of your home while accessing a lump sum or regular payments.  

Home Reversion Plans 

Alternatively, a home reversion plan involves selling a portion, or all, of your property to a home reversion provider in exchange for a lump sum or ongoing payments, while retaining the right to live in your home rent-free for life. Each of these equity release plans has its own advantages and considerations, so it’s essential to seek professional guidance to ensure you choose the right solution for your needs and circumstances. 

The equity release process 

Couple receiving advice from a qualified equity release adviser at Bower Home Finance

Once our advisers have determined how much equity you could be eligible to release, they will work with you to find out if you would like to make repayments, and if you wish to retain ownership of your home, this will allow them to match you to a product that might suit your circumstances. When it comes to lifetime mortgages, you’ll have the option to make monthly repayments or let the interest roll up until the end of the plan. 

You will then go through an application process, once this has been approved and the funds have been released, you will be able to use your tax-free cash to start your home improvements. 

Using the funds released for home improvements 

Using equity release to fund home improvements is quite common, with homeowners across the UK turning to lifetime mortgages and home reversion plans for tax-free cash. Some of the most common home improvements include: 

Essential work and repairs  

As your home ages, it’s more likely some essential maintenance and home improvements are needed to improve the safety and integrity of your property, often coming with some unexpected costs. These can include repairing or replacing roofs, updating plumbing systems, and addressing any structural issues. Equity release can help provide the necessary funds to undertake these vital repairs without dipping into your savings or taking out loans that require immediate repayment.  

Ditching the DIY and fixing the mistakes 

Couple choosing colours to re-decorate, funded by equity release

The UK has a strong DIY culture, with homeowners often undertaking home improvements regardless of expertise. However, correcting DIY errors is estimated to cost UK homeowners hundreds of millions of pounds each year. 

While home improvements are beneficial, the time, effort, and expense involved, especially when fixing mistakes, can make professional help the wiser choice. For homeowners living on a pension, though, funding such improvements may require exploring alternative financial solutions including equity release to fund these improvements and repairs.  

Energy saving improvements  

With utility bills on the rise, more homeowners are looking to invest into energy-saving improvements to increase their home’s energy efficiency. Making these upgrades can also make your home eco-friendlier by reducing energy consumption and environmental impact.  

From installing insulation, to fitting solar panels, and upgrading to windows and doors, these improvements can not only improve your homes efficiency but can also increase its market value. Equity release can be an excellent way to fund these upgrades, allowing you to enjoy long-term savings on energy costs. 

Aspirational projects  

For many homeowners, aspirational projects like building an extension, installing a new kitchen, creating a loft conversion, or creating a luxury bathroom are high on the wish list. Many homeowners are interested in these types of home improvements as they consider ways to enhance their living space.  

Transforming your living space with these aspirational projects can enhance your quality of life whilst increasing the space in your home. Releasing equity can provide substantial funds needed for these larger projects, enabling you to create the home of your dreams without making any monthly payments. 

Accessibility improvements  

As our mobility and needs change, it becomes more important to make our homes more accessible for a comfortable lifestyle. Improvements such as installing walk in showers, stair lifts and ramps can make a home safer whilst assisting homeowners in remaining in their home for as long as possible.  

Releasing equity can help cover the costs of these modifications, ensuring that your home remains a safe and welcoming environment for years to come.  

Can you release equity without remortgaging?  

Remortgaging isn’t the only way to release equity from your home to finance home improvements. While lifetime mortgages and interest-only lifetime mortgages involve remortgaging, there are other options, like downsizing or using a home reversion plan, that don’t require it. 

Using equity release to help family

You might choose to remortgage to access better rates or free up funds or take out a new mortgage if your home is already paid off. Some people also consider a second mortgage, which is a type of secured loan using your home as collateral. These loans tend to have lower interest rates and longer terms compared to unsecured loans, which usually come with higher rates and shorter repayment periods. 

It’s important to consider all the options and how they might work for your situation, especially with factors like interest rates or house prices potentially affecting your equity. 

To explore what might be right for you, we recommend a free, no-obligation chat with one of our experienced advisers. 

When will I pay back my equity release?  

Equity release plans are required to be repaid when the last surviving applicant passes away or moves into long-term care. This is often done through the sale of your home, and any remaining funds left over will be passed to your estate which will distributed as listed in your will. 

If you choose to proceed with equity release, your equity release adviser will discuss in detail the implications of equity release and what this will look like over your lifetime. It’s important to know you and your estate will never owe more than the value of your property’s value, also known as a ‘No Negative Equity Guarantee.’ 

Find out how much equity you could release from your home with our equity release calculator:

equity-release-logo

Award Winning
Equity Release Advice


Feefo rating badge

 

At Bower Home Finance, we will understand your unique circumstances and advise you to ensure you are receiving the best plan to meet your objectives. There are plans that allow you to make voluntary repayments and move home, subject to lender criteria. However, early repayment charges may apply in certain circumstances.

Bower Home Finance provides independent, impartial whole of market equity release advice with an award-winning customer service experience. Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed and your plan completes, would a typical advice and administration fee of £1,695 be payable.

Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care. Equity release will reduce the value of your estate and your entitlement to means-tested benefits now or in the future, and impact long-term care funding. If you are considering equity release, we strongly recommend that you read our Equity Release page carefully and talk to one of our specialists before deciding if you wish to proceed.

To find out more about any of the products and the service we provide, please call us on freephone 0800 411 8668, request a call back, email us, or use our live chat on our website.

Please be aware that equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. All features and risks are thoroughly explained in your free personalised illustration.