Can you do equity release more than once?

How to access your property wealth after arranging a plan.

It is possible to do equity release more than once on the same property. It may also be possible to arrange more than one plan at the same time if you have more than one property, such as a second home or a buy-to-let property.

We’ll be discussing the following to help you understand how you can do equity release more than once:

• What is equity release?
• Can you do equity release more than once?
• Borrowing additional funds from a drawdown plan.
• Taking further advances on your equity release plan.
• Switching your equity release plan.
• Can I have two equity release plans at once?
• Talk to an equity release adviser.

Once you have read the following guide, why not speak to a specialist adviser about unlocking tax-free cash from your home? Call 0800 096 2215, or request a call back to arrange an appointment.

What is equity release?

Equity release enables UK homeowners aged 55 or over access to some of the tax-free money built up in the value of your home.  There are typically no monthly repayments to make and you can spend your money in almost any way you wish.

When you pass away or move into long-term care, your home is put up for sale and the money used to settle your equity release loan plus interest.

Whilst there are many flexible options and features to choose from, there are two main types of equity release plan. These are lifetime mortgages and home reversion plans. 

See our blog featuring examples of equity release for further information and case studies on how equity release is helping homeowners across the UK.

Want to know how much you could unlock from your home? Check your eligibility and get your free quote now!

Can you do equity release more than once?

Yes it is certainly possible to access some of your home’s property wealth through equity release more than once on your current property. 

These are the three scenarios that could enable you to unlock further funds from your home: 

• Borrowing additional funds from a drawdown plan
• Taking further advances on your equity release plan
• Switching your equity release plan

Read on to explore each of these options to see if any of them might be right for you.

Speak to our selected advisers for all the equity release information and guidance you need. Call us on 0800 096 2215 or request a call back here.

Borrowing additional funds from a drawdown plan.

The most common way to access your home’s equity on multiple occasions is through a drawdown plan. According to the Equity Release Council’s Q2 2023 market report, more than half (52%) of equity release customers choose to have a drawdown facility on their plan.

A drawdown lifetime mortgage enables you to ringfence a cash reserve from your home’s value. You take a first instalment when you arrange your plan – the average amount for this was £59,294 in Q2 2023 – then take further amounts as and when you need them.

Taking further advances on your equity release plan.

If you already have an equity release plan set up but do not have a drawdown facility in place, you may still be able to access additional funds by requesting a ‘further advance’.

After arranging your single cash lump sum plan, you may find that you need a further cash boost a few years later. There are some instances where you may be able to do equity release more than once with your current provider. For example:

• You might not have released the maximum amount available.
• Your home may have increased in value since you arranged your plan.
• You may be eligible for a higher ‘loan to value’ now due to being older.

Remember, to arrange a further advance you will need to receive equity release advice again and have your property re-valued. Your provider will inform you of any costs involved.

Switching your equity release plan.

Whichever lifetime mortgage you have in place, another way that you can do equity release more than once is by switching plans. This is also known as rebroking or re-equity release. 

Similar to a remortgage, switching equity release plans involves speaking to an adviser to compare plans from different providers who could offer you a better rate, more tax-free cash or both. 

Your adviser will search for a new plan which will pay off your original equity release plan plus any interest and early repayment charges (if applicable). 

You might find that you are able to achieve a better deal based on you being older now. Your home may also be worth more than it was, or you might have developed a health or lifestyle condition that qualifies you for medically enhanced terms. 

By searching around for a new deal, you may also find that you can access new features that your current plan does not offer, such as:

• A drawdown facility: Ringfence a cash reserve facility to unlock your additional funds in smaller, regular amounts when needed.
• Repayment options: Make voluntary repayments up to a certain amount each year to minimise the interest or your overall loan, penalty-free.
• Downsizing protection: Gives you the freedom to downsize and repay your loan without any early repayment charges after a certain number of years. 
• Significant Life Event exemption: The freedom to repay your loan without penalty should the other homeowner pass away or move into long-term care.
• Inheritance protection: Guarantee a percentage of your home’s value for your family to inherit one day. This will naturally reduce the amount of money you can borrow.

Read more about switching your equity release plan here.

Can I have two equity release plans at once?

It is not possible to have more than one equity release plan at the same time on the same property. This is because a strict requirement of equity release is that it is the only debt secured against the property. 

In the same way, you cannot have a standard mortgage on your home with equity release. When you arrange a plan, you must agree that any existing mortgage that you have in place will be paid off by the money you unlock.

However, if you have more than one property then you may well be able to have two equity release plans at the same time. You could do this by arranging equity release on a second home or buy-to-let property.

Talk to an equity release adviser.

We hope the above information has answered the question “can you do equity release more than once”. If you are interested in switching your plan or arranging one that allows you to access your money as and when you need it – a drawdown plan – then your best course of action is to speak to an equity release specialist like our selected advisers. 

They will use their years of experience in the equity release industry to search and compare plans on your behalf. They’ll also help you understand the benefits of a plan and the pitfalls of equity release, too. For instance, how a plan will reduce the value of your estate and the amount of inheritance you leave.

Please call 0800 096 2215, or request a call back for a time that suits you to arrange an appointment. Alternatively, check your eligibility and get an initial indication of how much tax-free cash you could release.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn