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Can you get equity release in Scotland? Yes!

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Oct 23, 2022

Can you get equity release in Scotland? Yes – here’s how we can help you get approved today

Equity release mortgages and lifetime mortgages were difficult to find for a while.

An equity release scheme was not widely available, and there was a perceived shortage of providers offering an equity release mortgage. However, this is no longer true, and equity release products in Scotland are available.

We examine equity release schemes in Scotland and the eligibility criteria and how much you can release in equity from your home.

We have a Scotland mortgage providers lending equity release mortgages and lump sum lifetime mortgages in Scotland, start your application below now:

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Is it possible to get equity release in Scotland?

You can now release equity in Scotland just like in the UK with an equity release scheme. You can borrow money from equity release providers secured against your home. They also charge interest.

You can repay the loan upon your death or when you move into full-time residential care. The sale of your property is often the way to repay it, and the equity release amount will depend on the property value and your personal circumstances.

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The current offerings of the Scottish equity release programs are:

Mortgage for life

A loan is taken out with a lifetime mortgage, and your property is used as security. The funds are released in either instalments or a tax-free lump sum. In Scotland, you remain the property owner. You may be able to do both. These are the different types of equity release lifetime mortgage options:

  • A lump sum mortgage: The entire loan is received at once.
  • A lifetime drawdown mortgage: You have the opportunity to pay your loan instalments whenever you like.
  • A lifetime income mortgage: You get a regular income payment.

The amount borrowed is subject to interest accrual over the life of the mortgage. You don’t have to repay the mortgage until you die or can care for your family full-time.

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Interest-only equity release

An interest-only equity release works like a lifetime mortgage but requires regular monthly repayments to pay back the interest.

This means you will only need to repay the original amount borrowed from your estate when you die or move into full-time residential care. This allows you to protect the value of your estate when you die.

Home reversion

These plans allow you to sell a part of your home to a provider and receive a lump sum or equivalent monthly instalments.

Mortgage advisors do not often recommend Home Reversion plans because you lose ownership of the amount of your property, though you can still live there rent-free.

Another disadvantage is that you often get a lower price for selling a part of your home than the market. These products are typically only available to people over 60 years old, if at all.

This advantage is that your home’s value will not change, so you can determine how much you want to leave behind in your will.

Is equity release different in Scotland?

They work the same way as in the UK. The eligibility criteria your potential lender will require you to meet are listed below. These criteria can vary from one provider to the next, but they are generally focused on:

  • Your age: To purchase these products, you must be older than 55.
  • Your life expectancy. If you have a short life expectancy, there may be more lenders who can lend you the maximum amount.
  • Your income: The more you earn, the better. It will also take into consideration the source.
  • Credit history: Lenders are likelier to lend to those with a strong credit history. Bad credit may still be eligible but not as much or as advantageous a rate.
  • Lenders require that your property has a value of at least £70,000. Others will insist it be higher.
  • Your location: Some providers offer equity release only for certain areas.
  • The type of property: Most lenders prefer standard construction homes. For example, those who are listed may have fewer loan options.

Although the rules in Scotland are the same, some issues are more prevalent north of the border. Some lenders won’t lend to certain types of property, and some lenders won’t consider equity release requests from the mainland or key cities. This doesn’t mean that finding a lender is more difficult if your home is listed or in the Highlands.

How a broker can assist with equity release

A broker is a great resource if you’re looking to sell equity in your Scottish home. A broker can help you navigate the maze of paperwork that can become overwhelming.

A specialist in equity release products and providers for Scotland can advise you on the best lenders for you. This increases your chances of getting approved. This allows you to maximise the amount you receive at the lowest rate.

Our mortgage brokers will evaluate your financial and personal circumstances to ensure that you apply only for products for which you are eligible. The brokers will help you with every step of the application process. You will save time, stress, and money.

To begin your equity release Scotland journey, click the link below or use this equity release calculator to get indicative rates.

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Which are the top equity release providers in Scotland

There is no single equity release provider in Scotland that is the best. The provider that meets your requirements and addresses your needs the most effectively will be the best for you.

This means that the provider who lends you the most amount at a rate you can afford is the best one for you. A broker might be able to help you with this.

Most of the major providers in the UK offer equity release programs to mainland Scotland. Some will have geographic restrictions as part of their eligibility criteria.

Many household names could be considered, including Legal & General, Canada Life, and Scottish Widows Aviva. This is by no means an exhaustive list.

Talk to an expert about equity release Scotland

A mortgage broker can simplify applying for an equity release scheme in Scotland. Our brokers have extensive market knowledge and access. We will be able to advise you on the best equity release in Scotland product and lender for you.

We offer a free-of-charge service and will match you with a provider who works with situations similar to yours.


Is it possible to refuse equity release?

Your application may be denied if you don’t meet the requirements of equity release providers. A broker can be very useful as they can help you identify the providers that you are eligible for and give advice accordingly.

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What other options are there besides equity release schemes?

You might consider remortgaging or extending the term of your mortgage if equity release is not an option.

Loan Corp can help determine if a retirement-interest-only mortgage is right for you. Start your application online below now.

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