Content Writer
Senior Equity Release Advisor
If you’re over the age of 55 and a homeowner in Scotland, an equity release scheme could be a viable way of boosting your retirement funds.
In this guide, we’ll clarify whether this is possible, what changes, if any, to the standard criteria, and which providers are available.
Are equity release mortgages available in Scotland?
Yes, equity release schemes are available throughout the UK - including Scotland. The same applies to Retirement Interest-Only mortgages, which share many key characteristics with equity release (see below).
The only main difference may be the number of providers available compared to other parts of the UK (England and Wales, in particular). However, as you’ll see in the section below, plenty of familiar, respected names offer this type of lending.
Do they work any differently?
No, not at all. As with the rest of the UK, the main criteria for accessing equity release in Scotland are as follows:
- Age. You must be at least 55 years old to access this type of borrowing.
- Property value and location. Your home must be located in the UK (in this case, Scotland), and the amount of equity you can release will be based on a percentage of its value.
- Health and lifestyle. Enhanced terms can apply if you suffer from a severe illness or condition and if the provider deems certain lifestyle choices risky.
- Existing mortgage. Most providers prefer that there be no mortgage owed when you apply. However, some will still allow for a small balance remaining.
The two types of equity release available - lifetime mortgages and Home Reversion Plans - also apply to Scotland, as they do for the rest of the UK.
The only difference would come during the valuation stage of the application process, which, in Scotland, would need to be conducted by an independent, chartered surveyor and is considered authoritative in accurately assessing the true market value of your property to establish how much equity can be released.
Is professional advice still a legal requirement?
Yes, this applies regardless of where you reside in the UK. The legal requirement is in place to ensure you’ve received the correct advice and can make an informed decision that equity release is the right choice for your specific circumstances.
This is where we can help. As members of the Equity Release Council (ERC) our team of specialist advisors all have the appropriate knowledge and experience to help you make the right decision.
Connect with an equity release specialist today
How much equity can you release?
The factors mentioned above will all play a part in determining how much equity you can release.
Use our calculator below to get an idea of how much equity you could receive based on your own personal situation.
Which equity release providers are available in Scotland?
The following equity release providers offer their full suite of products in Scotland:
- Scottish Widows
- Legal & General
- Aviva
- Standard Life
- Canada Life (UK)
- OneFamily
- Pure Retirement
- More2life
- Just Retirement
- LV
- Responsible Lending
Knowing which providers are available and choosing the right one for your specific needs can take time and effort. This is why seeking professional advice is so important (and, of course, a legal requirement for this type of borrowing).
Our advisors will be able to highlight the crucial differences between the key features of each equity release product so you can select the one that best suits your requirements.
What viable alternatives are there to equity release?
If you’re either under the age of 55 and therefore ineligible, or you want to look at all your options before making a final decision on equity release, the following alternatives should also be considered:
- Retirement Interest-Only Mortgage (RIO). Very similar to equity release, with the key difference being RIO’s have mandatory regular interest repayments. Royal Bank of Scotland offers RIO’s as part of their mortgage suite of products.
- Remortgaging to release equity. Likely to be a more suitable option if you’re under 55 and still have a mortgage on your property
- Downsizing to a cheaper property
- Using existing savings and investments, if available
- Going back to work part-time or taking on freelance assignments
You can read more about your other options in our guide to equity release alternatives.
Why choose Teito for your equity release needs?
Wherever you’re based in the UK - Scotland, England, Wales, or Northern Ireland - we can help you find the right equity release solution for your needs.
As members of the Equity Release Council, our advisors can deliver the professional advice you need for this complex form of borrowing.
Here are some of the reasons people choose Teito for their equity release needs:
- Your initial consultation is FREE, with no obligation to proceed
- Our advisors have relationships with the best equity release providers in Scotland
- We can guide you through the application process from start to finish
- We are rated 5-star on leading review websites
Ready to take advantage of a free, no-obligation chat with an equity release advisor who specialises in the Scottish market? Get started here.
FAQs
No, you don’t. Home Reports have been a legal requirement in Scotland since 2008 but are only required if you sell your property. That wouldn’t be the case with equity release, but your valuation will need to be done by a surveyor registered with the Royal Institution of Chartered Surveyors.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.