Can I take out equity release if I have a poor credit history?

It is possible to apply for equity release if you have a poor credit file, but acceptance will be dependent on the terms and conditions of the lender and the nature of your credit issues. It isn’t only about what has happened, they will also consider why the history but also about the reasons things have gone wrong.

If there are late and missed payments, the cause of the problem is more important than the payment history. A cautious adviser will not want to help you release of funds unless they are comfortable you can handle the money prudently. This is true of all of potential credit issues. They will want to work with you to ensure any money released is employed responsibly.

If there are County Judgements (CCJs), the lender might only release money on the proviso that they are cleared from the mortgage. They might ask your solicitor to pay the related debts directly from the money released. Historic CCJs and defaults need to be disclosed but will be less of a problem.

Lending will only be available in respect of bankruptcy or Individual Voluntary Arrangements when they have been fully discharged and any historic debt written off. Any charging orders against the property will also have to be lifted but this could be done simultaneously with the release of funds from a Lifetime mortgage.