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Equity Release and Lifetime Mortgages… the Pros and Cons
You’ve probably heard the term equity release—but what does it actually mean? Whether you’re looking to boost your retirement income, help family financially, or simply unlock some of the value tied up in your home, equity release allows you to access tax-free cash without having to sell or move.
It’s often referred to as a Lifetime Mortgage—which happens to be exactly what our friendly equity release advisers specialise in. Unlike a traditional mortgage, there are no mandatory monthly repayments (unless you choose to make them). Instead, interest is added to the loan, and the total amount is repaid when you pass away or move into long-term care.
Think of it as a reverse mortgage—you take out a loan secured against your home, but instead of making repayments each month, it’s settled later. Whether you take a lump sum or draw down funds as needed, equity release gives you flexibility without affecting your day-to-day budget.
But is it the right choice for you? Our equity release advisers are here to provide clear, honest guidance—no jargon, no pressure, just straightforward advice tailored to you. Keep reading for a full breakdown of how it works, the pros and cons, and whether it could fit your financial goals.
And if you’d rather chat things through, our equity release advisers are only a call or click away—always happy to help with friendly, no-obligation advice.
What Is Equity Release and How Does It Work?
If you’re wondering what equity release actually means, you’re not alone. In simple terms, it allows homeowners aged 55+ to unlock some of the tax-free cash tied up in their property—without having to sell up or move.
Over time, you’ve likely paid off (or significantly reduced) your mortgage, and property prices may have risen—creating equity in your home. Equity release lets you access some of that value, either as a lump sum or in smaller withdrawals when needed.
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Let’s say you bought your home for £90,000 many years ago.
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Today, it’s worth £400,000, and you’ve fully paid off your mortgage.
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That means you have £400,000 in equity—but it’s all tied up in your home.
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With equity release, you can unlock a portion of that wealth, without having to sell or downsize. The loan is then repaid later—when you move into long-term care or pass away—with no required monthly repayments (unless you choose to make them).
It’s a simple concept, but finding the right plan depends on your individual circumstances. That’s where our equity release advisers come in—to help you understand your options, answer your questions, and make sure this is the right financial decision for you.
And even better, we have equity release and lifetime mortgage advisers covering Dorset, Hampshire, and the surrounding areas, we offer face-to-face and remote guidance—wherever you are, we’re here to help.
Hear from happy people
Three Simple Steps to Securing Your Equity Release
Unlocking the value in your home shouldn’t feel complicated. Whether you’re looking to boost your retirement income, help family financially, or simply enjoy a more comfortable lifestyle, equity release can provide a tax-free lump sum or flexible withdrawals, without having to move.
At Delta Mortgages, we make the process clear, simple, and stress-free. We’ll guide you through your options, compare the best lifetime mortgage plans, and ensure you have all the information you need to make an informed decision.
Here’s how it works:
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Apply & Secure Your Equity Release
Once we’ve found the right plan, we’ll handle the paperwork and work with solicitors and lenders to get everything moving. Most applications complete within 4-8 weeks, so you can access your funds quickly and with confidence.
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We’ll Compare the Best Equity Release Plans
With access to the UK’s top equity release lenders, we’ll search the market for a plan that fits your needs—whether you want a lump sum, a flexible drawdown facility, or an option to pay interest and protect your inheritance.
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Speak to an Equity Release Adviser (they’re all lovely by the way)
Start with a free, no-obligation chat with one of our equity release brokers (they’re all lovely by the way). We’ll take the time to understand your goals, answer any questions, and explain the pros and cons—all in plain English (no confusing jargon here).
At Delta Mortgages, we believe equity release should be straightforward and stress-free. Our advisers are here to provide experienced guidance—so you can make the right decision with complete peace of mind.
How Common Is Equity Release?
Equity release has been growing in popularity for years, and the numbers don’t lie. More homeowners than ever are unlocking property wealth to boost their retirement income, support family, or fund home improvements.
The Equity Release Council (ERC), the industry body that sets the standards for equity release, has been tracking this growth closely. According to their figures:
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In 2019, the market saw an 8% increase in activity in just one quarter, with almost £1 billion released between July and September.
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More recently, equity release continues to grow, with homeowners tapping into their property wealth as a flexible alternative to traditional borrowing.
A perfect storm of factors has made equity release more attractive than ever:
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An ageing population – More people are reaching 55+ and looking for ways to supplement their pension, support their lifestyle, or fund care costs.
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Rising house prices – Property values have soared over the years, giving homeowners more equity to access.
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First-time buyer struggles – Younger generations are finding it harder to get on the property ladder, making it more common for parents and grandparents to gift deposits using equity release.
With more financial flexibility and regulated safeguards in place, equity release is no longer seen as a last resort—it’s becoming a mainstream financial option for those looking to make the most of their property wealth.
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An Ageing Population and the Rise of Equity Release
We’re living longer, and homeownership remains a cornerstone of financial security for many older generations. According to the Office for National Statistics (ONS), almost 12 million people in the UK are aged 65 or over, and by 2041, that figure is set to rise to 25% of the population. While longer mortgage terms are becoming more common, many people still own their homes outright—or have significant equity built up.
At the same time, younger generations are finding it harder to get onto the property ladder. As a result, more retirees are looking at ways to provide financial help to their families while securing their own financial future. Equity release is one such option, allowing homeowners to unlock some of the cash tied up in their property without having to sell or move. In some cases, it can even be used to clear an existing mortgage, reducing outgoings in later life.
The need for flexible financial solutions in retirement is growing, and equity release is playing a key role in supporting homeowners who want to access their wealth in a practical, manageable way.
The Future of Equity Release
Property wealth is becoming an increasingly important financial resource for retirees. Statistics from the Equity Release Council show that 2024 saw a 16% increase in equity release lending than the previous year—a clear sign of growing demand.
With house prices continuing to rise and pension income not always stretching as far as expected, more homeowners are looking at equity release as a way to supplement retirement income, fund home improvements, or support loved ones financially.
Equity release isn’t just a short-term trend—it’s set to play a bigger role in financial planning for retirees across Dorset, Hampshire, and beyond.
As the market evolves, options are becoming more flexible, interest rates are more competitive, and lenders are introducing features like inheritance protection and repayment options to give homeowners greater control.
Is Equity Release Right for You?
Equity release isn’t just about unlocking cash from your home—it’s about financial freedom, flexibility, and making the most of your retirement (and focussing on some of those exciting adventures you’re going to have!). Whether you’re looking to boost your income, pay off a mortgage, or help family members onto the property ladder, it could be a great solution.
But is it the right choice for you? Ask yourself the following:
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Do you want a tax-free lump sum without monthly repayments?
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Would you prefer a flexible drawdown option, accessing funds as needed?
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Do you want to stay in your home while benefiting from its value?
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Are you considering equity release on a second property?
Equity release is often used for:
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Funding home improvements—because retirement is no time for dodgy DIY (this guy is the master at it!).
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Helping family financially—gift an early inheritance to children or grandchildren.
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Clearing debts—reduce financial stress and free up disposable income.
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Enjoying retirement—from dream holidays to ticking things off your bucket list.
If any of these resonate, equity release could be worth exploring. But it’s not a one-size-fits-all solution, and it may not be appropriate for everyone, which is why speaking to an experienced equity release adviser is so important.
Equity release has come a long way since the early days, and today’s plans come with built-in protections:
You will never owe more than your home’s value—thanks to the no-negative-equity guarantee.
You have the right to live in your home for life—or until you move into long-term care.
Inheritance protection options are available—so you can safeguard a portion of your estate.
The Equity Release Council (ERC) was formed in 1991 to protect homeowners, and any lender or adviser who is a member must adhere to strict industry standards. Choosing an ERC-approved provider ensures you’re dealing with a reputable lender with fair terms and transparent advice.
Of course, equity release isn’t for everyone. If preserving your full inheritance is a priority, or if alternative financial solutions could better meet your needs, it’s essential to weigh up all options first. That’s where expert advice (from real humans, not just comparison sites!) makes all the difference.
At Delta Mortgages, our equity release advisers provide clear, honest guidance to help you make an informed decision—no jargon, no pressure. Whether you’re just starting to explore equity release or you’re ready to take the next step, we’re here to help.
Find out if Equity Release is right for you
Whether you’re upsizing, downsizing, or relocating, securing the right mortgage should be simple, stress-free, and tailored to you. At Delta Mortgages, our experienced mortgage brokers in Dorset and Hampshire search the whole market to find the best mortgage deal for your move.
Let’s take the hassle out of your home move. Request a Call Back today!
Equity Release FAQs – Get Clarity, Not Confusion
Equity release is a big decision, and naturally, you’ll have plenty of questions. We get it—unlocking cash from your home isn’t something you do every day!
Whether you’re wondering about eligibility, interest rates, or what happens when you move, we’ve got the answers. Our equity release advisers have helped countless homeowners across Dorset, Hampshire, and beyond make informed choices—with clear, honest guidance and zero jargon.
Here are some of the most common questions we’re asked about equity release. If you don’t see yours, don’t worry—we’re just a call or a click away.
Equity release isn’t available to everyone—there are a few key eligibility boxes to tick before you can apply.
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You must be at least 55 years old (based on the youngest homeowner if applying as a couple).
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Your property must be worth at least £70,000—some lenders may have higher minimum values.
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The home must be your main residence, in reasonable condition, and located in the UK.
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If you still have a mortgage, you’ll need to use part of the equity release to clear it first.
The older you are, the more equity you can typically unlock. Some lenders have no upper age limit, so whether you’re 55 or 85, options are available.
As with any financial product, finding the right lender matters. We recommend choosing a provider that’s a member of the Equity Release Council (ERC), ensuring you benefit from industry safeguards, fair terms, and protections such as the no negative equity guarantee.
If equity release isn’t the best fit for you, our advisers won’t just tell you—they’ll help you explore other options, ensuring you make the right financial decision for your future.-
Ahhhh we can bring out our favourite two words. It depends! But is all seriousness percentage depends on a few factors, including:
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Your age – The older you are, the higher the percentage you can unlock.
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Your property value – The more your home is worth, the more equity you can potentially access.
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Lender criteria – Different providers offer different loan-to-value (LTV) ratios.
Most equity release providers offer between 20% and 60% of your home’s value, though exact amounts vary. Ask our equity release advisers to calculate how much you could release based on your age and property, so you can plan with real figures in mind.-
Equity release interest rates vary by lender and product, but they tend to be higher than standard mortgages due to their long-term nature.
Here’s what to expect:
Lifetime mortgages – The most common form of equity release, with fixed or variable interest rates that roll up over time. Some plans allow optional interest payments to reduce the overall cost.
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Home reversion plans – No interest is charged, as you’re selling a share of your property in exchange for a lump sum. The provider recoups its share when the home is sold.
While compounding interest means the amount owed can grow over time, modern plans allow for partial repayments, keeping the total debt under control.
If you want a real-world example, speak to one of our equity release advisers, and we’ll calculate the numbers for you—transparently and without obligation. Cos we’re lovely like that.-
Yes, it’s possible—but there are a few important things to consider.
Equity release is designed to let you stay in your home for life, but that doesn’t mean you’re locked in if you decide to move. Most lifetime mortgage providers offer a ‘porting’ option, meaning you can transfer the loan to a new property—as long as it meets the lender’s criteria.
So, what does that mean in practice?-
If the new home is of similar or higher value, moving your equity release plan should be straightforward.
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If you’re downsizing, you may need to repay part of the loan if the new property doesn’t provide enough security for the lender.
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Some properties, like retirement flats or certain leasehold properties, may not be eligible.
Before making any big decisions, speak to an equity release adviser (like us!) who can check your lender’s policies and help you plan ahead if a future move is likely.-
Yes—but your existing mortgage must be repaid first.
Here’s how it works:-
You apply for equity release, and a lender assesses how much you can borrow.
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If approved, the first chunk of funds goes towards paying off your existing mortgage (this is a non-negotiable rule).
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Any remaining equity release funds are then yours to use as you wish.
Let’s look at an example:
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Your home is worth £250,000, and you have £40,000 left on your mortgage.
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You qualify for £80,000 equity release.
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£40,000 goes towards clearing your mortgage.
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You receive the remaining £40,000 to spend however you like.
This can be a great option if you want to free up cash but don’t want monthly repayments—but it’s crucial to understand the long-term impact. Our equity release advisers can run the numbers, explain the pros and cons, and help you decide if it’s the right route for you.
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No—there’s no strict upper age limit, and in some cases, being older is actually an advantage!
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Equity release is available from age 55 onwards, but unlike standard mortgages, older applicants can often unlock a higher percentage of their home’s value. Here’s why:
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Lenders base the amount available on life expectancy—the older you are, the more equity they’ll release.
Most providers have no maximum age limit, so whether you’re 60, 80, or 95, you may still be eligible.
That said, if you’re well into your golden years, some lenders may restrict borrowing—or suggest alternatives like downsizing or inheritance planning.
As always, shopping around is key. Some lenders specialise in later-life lending, so even if one says no, another may say yes.
Not sure where to start? That’s where we come in! Our equity release advisers compare options to find the right plan for your circumstances. Go on, give us a call.-
Equity release can be a brilliant solution for many people, but it’s not without its drawbacks—it’s important to go in with your eyes open.
Here’s the biggest consideration. Compound interest. Unlike a regular mortgage, where you make monthly repayments, interest on a lifetime mortgage rolls up over time. The longer you live, the more the debt grows, which means your loved ones could inherit less when your property is eventually sold.
But there is some good news (phew). You’ll never owe more than the value of your home. Thanks to Equity Release Council safeguards, you and your family are protected from negative equity, meaning your estate won’t be left with a debt bigger than your home’s value.
Other potential downsides include:
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Early repayment penalties – Most lifetime mortgages are designed to last for life, so paying them off early could come with hefty fees. If flexibility is important to you, we’ll help find a plan with lower penalties.
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Impact on benefits – If you receive means-tested benefits (such as Pension Credit or Council Tax Reduction), releasing equity could affect your entitlement, as the funds you unlock may push you above eligibility thresholds. It’s always good to check.
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Commitment – Once you’ve taken out a plan, undoing it isn’t always straightforward. That’s why talking it through with a specialist equity release adviser is crucial. At Delta Mortgages, we’ll make sure you fully understand the pros, cons, and any possible alternatives before you commit.
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Yes! Equity release isn’t the only way to free up cash in later life, and depending on your financial situation, there may be better options. Here are some alternatives worth considering:
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Using savings or investments – If you have ISAs, pensions, or other savings, it might be more cost-effective to draw from these rather than borrowing against your home.
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Downsizing – Selling your home and moving home to a smaller or more affordable property can release a lump sum of cash, without taking out a loan. Downsizing locally could be an option—or if you’re open to a change, moving to a cheaper area could stretch your money even further.
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Taking in a lodger – If you have spare rooms gathering dust, renting one out could provide a regular income stream while allowing you to stay in your home. (Just make sure to check tax implications first.)
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A retirement interest-only mortgage (RIO) – Similar to equity release, an RIO mortgage lets you borrow against your home, but you make monthly interest payments to stop the loan from growing over time. It’s worth considering if you want to leave more inheritance.
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Government schemes or benefits – Depending on your circumstances, you may be entitled to financial support that reduces your need to borrow. A quick benefits check could highlight untapped sources of income.
The right option for you depends on your needs, future plans, and financial circumstances. If you’re not sure what’s best, our experienced (and friendly) equity release advisers walk you through the pros and cons of each, so you can make the decision that’s right for you.-
In a nutshell, it depends on the type of plan you choose.
If you opt for a lifetime mortgage, interest is typically rolled up and added to the loan over time—meaning you don’t have to make monthly payments (unless you choose to). However, interest compounds, meaning the amount owed grows over the years.
If you’d prefer to keep costs down, there are two options:
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Interest-Only Plans – These allow you to pay off the interest as you go, preventing it from building up over time.
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Voluntary Payments – Most equity release plans allow you to repay up to 10% of the borrowed amount each year, meaning you can reduce the overall debt on your own terms.
Choosing the right plan is key—whether you want to keep repayments flexible or minimise the total cost of borrowing. Our equity release advisers can help you explore your options.-
Not sure whether to take a lump sum or withdraw cash gradually? A drawdown lifetime mortgage could offer the flexibility you need.
Here’s how it works:
Let’s say a lender approves you for £70,000 of equity release. Instead of taking the full amount upfront, you choose to withdraw £20,000 now and leave the rest in reserve. This means:-
You only pay interest on the amount you’ve withdrawn, not the full £70,000.
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You have access to additional funds when you need them, without having to reapply.
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It can be a more cost-effective way to manage equity release, as you’re not accumulating unnecessary interest.
If you're concerned about how interest builds up over time, drawdown could be a smarter alternative to taking a lump sum. But is it the best fit for you? Our experienced equity release advisers will talk you through the pros and cons.
And yes, they’ll patiently explain it all—even if you need to ask twice over a cuppa and a biscuit (Jammie Dodgers are the current flavour of the month – other biscuits are available.)-
Not as long as you might think!
If everything runs smoothly, you could have the funds in your account within four to eight weeks—though it depends on the type of equity release plan you choose:
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Lifetime Mortgages – Typically take four to six weeks from application to completion.
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Home Reversion Plans – These involve selling part of your property, so they tend to take slightly longer (around six to eight weeks).
The process includes:
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A meeting with an equity release adviser to discuss your options (come say hello our lovely lot👋🏼)
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A property valuation to determine how much equity you can release.
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A solicitor to ensure you fully understand the legal aspects.
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A final offer from the lender and completion of the loan.
If you need the funds quicker, speak to our team, and we’ll guide you through the fastest route to approval for your circumstances.-
Equity release is designed to be repaid when you pass away or move into long-term care. For simplicity, here’s how it works:
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If you have a lifetime mortgage, the loan (plus accrued interest) is repaid from the sale of your home.
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If you took out a home reversion plan, the equity release company will receive their agreed percentage of the property value upon sale.
For example:
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You released £50,000 in exchange for a 30% stake in your property when it was worth £300,000.
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If your property is worth £350,000 when you pass away, the lender will receive 30% of the final value—so £105,000.
A key safeguard: Negative equity protection guarantees that you’ll never owe more than your property’s final sale value. So, no matter what happens, your loved ones won’t inherit a financial burden.
If you’d like to discuss your options in detail, our friendly equity release advisers are here to help—no pressure, just clear guidance.-
Yes you can pay back equity release early, but it’s not always straightforward—so it’s crucial to check the details before signing up.
Most lifetime mortgages allow for early repayment, but many come with early repayment charges (ERCs) if you try to pay back the loan in full ahead of schedule. The key is understanding how these charges work:-
Some lenders fix their ERCs at the start, so you know exactly what you’ll be charged if you repay early—often within the first 8-10 years.
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Others have variable charges, meaning fees depend on market conditions at the time you repay.
That said, some plans offer flexible repayment options, allowing you to repay a percentage of the loan each year without penalty.
💡 If you think you might want to repay early, speak to our equity release adviser first—we’ll help you compare plans that offer the flexibility you need, without unnecessary charges.-
The best equity release provider depends entirely on your circumstances—because no two people have identical financial situations, property values, or borrowing needs.
Some lenders specialise in:-
Higher loan-to-value (LTV) options for those looking to unlock the most cash.
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Flexible repayment plans, ideal if you might want to pay back some of the loan.
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Drawdown lifetime mortgages, allowing you to withdraw funds gradually to minimise interest.
That’s why it’s so important to compare providers and work with an equity release adviser who can match you to the right lender.
At Delta Mortgages, we do just that—searching across the whole market to find a plan that fits your needs (not just the one with the best headline rate).-
Yes—any money you release from your home through equity release is completely tax-free.
However, what you do with the money could impact tax in other ways:
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If you invest the money (e.g., in stocks or savings accounts), any returns may be subject to income tax or capital gains tax.
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If you gift the money to family, it could be subject to inheritance tax (IHT) if you pass away within seven years.
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How Delta Mortgages Can Help You Secure the Best Equity Release
You’ve worked hard for your home—it’s more than just bricks and mortar; it’s your security, your memories, and a valuable financial asset. So, if you’re considering equity release, you want to be sure it’s the right choice, with the right plan and the best possible terms. That’s where we come in (hello 👋🏼).
At Delta Mortgages, we specialise in lifetime mortgages, helping homeowners across Dorset, Hampshire, and beyond unlock tax-free cash while keeping full ownership of their property. We know equity release can feel like a big decision, so we’re here to simplify the process, cut through the jargon, and provide clear, no-pressure advice.
Here’s how we make it easy:
Access market-leading equity release rates
We compare plans from the UK’s top equity release lenders, ensuring you secure a deal that’s competitive, flexible, and tailored to your needs.
Honest, expert guidance
No sales pitch, no pressure. Just clear, practical advice from friendly equity release advisers who will explain everything in plain English.
All the options, none of the stress
Whether you’re looking for a lump sum, drawdown facility, or an interest-paying plan, we’ll break down your choices and help you decide what’s right for you.
Protecting your future
Not sure whether to take your existing mortgage with you or switch to a new deal? We’ll crunch the numbers and find the most cost-effective option.
We handle everything
From the initial chat to liaising with lenders and solicitors, we’ll take care of the paperwork and keep things moving smoothly—so you can focus on enjoying your retirement, not drowning in admin.
Equity release isn’t right for everyone—but if it’s right for you, we’ll make sure you get the best possible deal.
Meet the Team That’s Got Your Back
At Delta Mortgages, we combine decades of experience with down-to-earth support that actually helps. No scripts. No waffle. Just lovely mortgage brokers who bring clarity, calm—and a bit of personality—to every step of your journey.
Get to know the people who’ll guide you from start to keys.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.