How old do I need to be to take out Equity Release?

The minimum eligible age for equity release is typically 55. For a joint application this is the age of the youngest applicant although there sometimes options that allow the second borrower to be younger. Your adviser can carry out some research on the current options.

Although a Lifetime Mortgage might be available at age 55, if you have earned income, it might not be the best option. The overall amount you can borrow, and the interest rate, depends on your age and the property value. If you are able to defer borrowing until you are a little older, the lifetime interest rate could be much better. In the meantime, if you can afford a more conventional mortgage, the interest rate is likely to be much less than a Lifetime Mortgage.

Of course, it isn’t possible to predict what might happen to Lifetime Mortgage rates in future and you might end up with a mortgage that costs more. The risk should be considered alongside the money that would be saved by applying for the Lifetime Mortgage later.

If you do borrow money while you are still working, some of the impact of rolled-up interest could be offset by making payments towards the interest while you can afford it.