If you’re considering buying a new home later in life, downsizing to release cash from your existing property, or using the equity in your home to help fund a future purchase, an equity release to purchase strategy could be a valuable option.

At J Finance, we help homeowners understand how equity release can support a purchase plan in retirement or later life, including the options available, the implications and whether it fits your financial goals.

Equity release when purchasing describes the process where you use a form of equity release — typically a lifetime mortgage — to help fund a property purchase. Instead of releasing cash from a property you already own, this approach enables you to use equity you would otherwise build up over time to assist with buying a new home.

This can be helpful if you:

• Are downsizing and want to retain cash for lifestyle, travel or care costs

• Are moving to a new home in retirement or later life

• Want to use equity to reduce the amount you need to borrow under a conventional mortgage

• Have limited liquid funds but significant property wealth

Lifetime mortgages for purchase can make it easier to buy a home later in life without sacrificing your lifestyle or financial security.

To qualify for a lifetime mortgage, you usually need to:

✅ Be 55 or older
✅ Purchase a main residence in the UK
✅ Meet lender criteria on the type and value of the property
✅ Have enough deposit or equity to cover any shortfall

Unlike standard mortgages, your income and credit history are usually less important, as the loan is secured against the property rather than based on affordability checks.

✔️ No Monthly Repayments – Unlike a traditional mortgage, you don’t need to make regular payments unless you choose to, which may reduce the interest rate on offer.

✔️ Stay in Control of Your Home – You remain the legal owner and can live in your new home for life.

✔️ Flexible Lending Criteria – Ideal for retirees and older homeowners who may struggle to get a standard mortgage.

✔️ Unlock Property Wealth – Use the value of your home to fund your next move, whether it's downsizing or relocating.

✔️ Optional Interest Payments – Some plans let you pay off interest to manage the overall cost of borrowing.

Equity release is not the same as a standard residential mortgage:

• Age and Eligibility: Whereas regular mortgages may have age or income limits, lifetime mortgages consider age and property value to determine eligibility.

• Repayment Structure: Instead of making monthly capital and interest payments, most equity release plans defer repayment until later in life.

• Security: The loan is secured against your new home.

• Purpose: This option is specifically designed to help older homeowners access equity to facilitate a property purchase.

Because of these differences, specialist advice is crucial to ensure you’re choosing the most appropriate route for your goals.

⚠️ Interest Rolls Up – If you don’t make voluntary payments, the loan balance will grow over time.

⚠️ Affect on Inheritance – Your estate may be reduced, though some plans allow you to ring-fence a portion for inheritance.

⚠️ Moving Home – Most plans are portable, but you’ll need lender approval if you want to move again later.

⚠️ Impact on Benefits – Receiving a lump sum could affect means-tested benefits.

It’s essential to get expert advice before deciding whether a lifetime mortgage is right for you.

At J Finance, we provide expert equity release advice tailored to your needs. Whether you're looking to move home, unlock property wealth, or explore your options, we’re here to help.

📞 Call us today for a free, no-obligation chat.
📩 Book a consultation to discuss your options.

Move home with confidence – explore how a lifetime mortgage can work for you.

How much can I borrow with a lifetime mortgage?
The amount depends on your age, property value, and lender criteria. Generally, the older you are, the more you can borrow.

What happens if I want to move again later?
Many lifetime mortgages are portable, meaning you can transfer them to a new property if it meets the lender’s requirements.

Will I still own my home?
Yes! Unlike home reversion schemes, a lifetime mortgage lets you retain full ownership of your property.