What is equity release?

Equity release allows you to release equity from your property. 'Equity' is the value of your home minus anything you still owe on your mortgage or other borrowings secured on your home. And when you release some of this equity, you receive a cash lump sum in the form of a loan often secured against your home.

With equity release, you can stay in your home until you (or the second borrower, if there are two borrowers), have either moved into long term residential care or died.

How equity release works

The amount you can borrow depends on your age and the value of your home. Unlike a standard residential mortgage, with equity release you don't have to make monthly payments, unless you choose to do so.

The mortgage and all accrued interest is usually paid back from the proceeds of selling your home. However, some plans allow you to make payments during the mortgage term.

Why you might take out this mortgage

  • Help with day-to-day living.
  • Make improvements to your home.
  • Buy a new car or go travelling.
  • Help children or grandchildren with house deposits or student fees.
  • Pay off debts.

You could qualify for equity release if:

  • you’re at least 55
  • you own your home, whether or not you have an existing mortgage
  • the property is or will be your main residence.

Is this type of mortgage right for you?

There are two types of equity release products: lifetime mortgages and home reversion plans.

While we offer our own equity release product, known as Nationwide Lifetime Mortgage, this is a complex area that requires consideration of your taxes, benefits, provisions etc. Equity release is available to new and existing customers.

Due to the complexity of this area, equity release is offered through specialist advisers. We have chosen to work with Age Solutions*, who are independent equity release specialists.

Things to think about

Taking out a lifetime mortgage will reduce the amount of inheritance you’re able to leave your loved ones, so you might want to discuss this with them. It may also affect your tax position and whether you’ll be able to receive means tested benefits now or in the future.

Equity release isn’t right for everyone and there might be a better way to achieve what you want to do without taking a lifetime mortgage or home reversion plan. You’ll need to consider your circumstances and whether you’ll have enough money in pensions, savings or investments to meet your needs. Different providers will have different criteria for an application to be considered.

We always try to do the right thing for our members, which is why Age Solutions will discuss what you want to achieve and make a recommendation. They’ll give you advice to help you make an informed choice from the range of products and services available through them.

Check that equity release will meet your needs if you want to move or sell your home, or if you want your family to inherit it. If you are in any doubt, seek independent advice.

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About Age Solutions

Age Solutions are whole-of-market equity release advisers. They’ll discuss your situation with you and recommend the best product or service for you from a range across the market.

They could recommend a Nationwide Lifetime Mortgage or a product or service from another company. Or they could recommend an alternative option. Nationwide isn’t responsible for the advice or recommendation you receive.

Age Solutions will always give you advice on what they think is the best outcome. That way, you can be confident you’ll receive the best solution for you, even if it’s not with Nationwide. Age Solutions are appointed representatives of Age Partnership Limited who are adviser members of the Equity Release Council. The Equity Release Council aims to make sure everybody that takes equity release has a good outcome.

So, if you’re considering equity release, always look for the Equity Release Council’s logo. That way, you can be assured the provider or adviser is working to the Equity Release Council’s guidelines and code of practice. Nationwide are a provider member of the Equity Release Council.

Find out more by calling Age Solutions on

0800 4640 008

*Age Solutions Limited are an appointed representative of Age Partnership Limited. Age Partnership Limited is authorised and regulated by the Financial Conduct Authority (‘FCA’). Age Partnership Limited is a member of the Equity Release Council.

We reserve the right to vary offers and services without notice.

Both Nationwide Building Society and Age Solutions Ltd are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

Home finance advising and arranging is covered for £50,000 per person per firm.

Further information about compensation scheme arrangements is available from the FSCS.

Mortgages are subject to underwriting and criteria. UK residents only.

Equity release council