Equity release is the process of releasing equity in your home. It is usually only available to people over 55.

There are two main types of equity release these are

Lifetime mortgages

& home reversion plans

Can you get an equity release if you are under 55 ?

If you are under 55 then it is unlikely you will be able to get an equity release product but you will be able to get a second charge product or a remortgage which can still help you release the equity in your property.

There may still be some mortgage lenders who consider you for an equity release when you are under 55 but you will have to speak to an equity release broker who has a good overview of the equity release market.

You should be cautious when considering brokers or equity release providers who claim that they can offer you an equity release plan even though you are under 55. You should check that any equity release lender you deal with is appropriately regulated.

Most equity release lenders are members of the equity release council.

It may be the case that some equity release providers will be more willing to lend to you if you are under 55 and have a terminal disease.

One of the main reasons why you typically cannot get an equity release product if you are under 55 is that the lender may not make much profit from this. This is because 1) they have advanced you a sum of money and you continue to live in the property for a prolonged period of time. 2) The interest charged on your equity release account could reach the value of your home much faster and most equity release lenders will not be able to charge you any more interest due to the negative equity guarantee.

This means that the equity release product for under 55s will be non-profitable for most equity release providers.

You may not be able to get an equity release product if you are under 55 but you may be able to use the alternatives to equity release.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.