Your property’s worth, minus any outstanding mortgage or loans secured against it, is its equity. This equity is often passed on as an inheritance; however, through equity release, you can access some of your property’s worth at an earlier date, tax-free.

There are two main forms of equity release: lifetime mortgages and home reversion plans. At Standard Life Home Finance, we only provide lifetime mortgages.

Our Horizon lifetime mortgages are available for homeowners aged 55-84 whose property is worth at least £99,000. However, not all equity release plans work the same. This page is here to help make the differences clear so you can make the right decision for your circumstances.

How much can I borrow?

How much you can release is dependent on the value of your property and your age. Usually, the older you are, the more you’re able to release. On joint applications, the age is based on the youngest applicant, rather than the oldest. The amount of equity available to you to release is calculated as a percentage of your property’s worth, otherwise known as the loan-to-value. The more value from your home that you wish to release, the higher your loan’s interest rate will be.

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The benefits of a Standard Life Home Finance lifetime mortgage

The lifetime mortgages available from Standard Life Home Finance provide access to several features. With all Standard Life Home Finance lifetime mortgages, you can:

Make voluntary repayments

With any Horizon lifetime mortgage you can make ad-hoc voluntary payments of up to 10% of the original loan amount each year without any early repayment charges (ERCs). This is in addition to your contractual payments if you choose a Horizon interest reward lifetime mortgage.

Retain ownership of your home

You will not be required to sell or sacrifice ownership of your property during the term of your lifetime mortgage. Subject to T&Cs.

Remain living in your home

You’ll have the right to live in your home during the term of your lifetime mortgage, or until you or the last remaining applicant move into long-term care.

Move home in the future

If you need to move to a different property in the future and it doesn’t meet the lender's criteria, you can repay your loan in full without facing any ERCs.

Avoid negative equity

Our no negative equity guarantee feature means you can never owe more than your property is worth. It’s important to remember that a lifetime mortgage may leave you with limited or no property equity remaining, and it’ll reduce your financial options in the future.

Remain on a fixed interest rate

You’ll be protected against any future interest rate increases with an interest rate fixed for life. With Horizon Interest Reward, your discounted interest rate is fixed for life providing you make all of your agreed monthly interest payments.

Getting the right advice

If you are considering a lifetime mortgage, it is required that you first receive advice from a qualified equity release adviser who will help you understand your options and advise on what is right for you.

All Equity Release Council members agree to abide by Equity Release Council rules, guidance and standards, and have signed up to the Council's Statement of Principles. When finding your equity release adviser, you can search the Equity Release Council's database of registered equity release adviser members.
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