Equity Release in Scotland

If you are a homeowner in Scotland aged 55 or over, equity release could be a viable way of boosting your retirement income.

In this guide, we explain how equity release works in Scotland, whether there are any differences compared with the rest of the UK, and which providers currently offer plans north of the border.

Are equity release mortgages available in Scotland?

Yes – equity release schemes are available across the UK, including Scotland. The same also applies to Retirement Interest-Only (RIO) mortgages, which share many of the key features of equity release.

The main difference is that the number of providers operating in Scotland may be smaller than in other parts of the UK, particularly England and Wales. However, as outlined below, there are still plenty of well-known and reputable lenders offering these products to Scottish homeowners.

Do they work any differently?

The eligibility rules for equity release in Scotland are the same as elsewhere in the UK. The main criteria include:

• Age – You must be at least 55 years old to qualify.

• Property value and location – Your home must be in the UK (in this case, Scotland). The amount you can release will depend on a percentage of its value.

• Health and lifestyle – Some providers offer enhanced terms if you have a serious health condition or certain lifestyle factors.

• Existing mortgage – Most providers prefer that your mortgage is fully repaid, although some may allow a small outstanding balance.

Both types of equity release –lifetime mortgages and home reversion plans – are available in Scotland, just as they are in the rest of the UK.

The main difference comes at the valuation stage. In Scotland, this must be carried out by an independent chartered surveyor. Their report is considered authoritative in determining your property’s true market value and will be used to calculate how much equity you can release.

Is professional advice still a legal requirement?

Yes – professional advice is a legal requirement across the UK, including Scotland. This safeguard ensures you receive the correct guidance and make an informed decision about whether equity release is suitable for your circumstances.

This is where an adviser can help. As members of the Equity Release Council (ERC), we have the knowledge and experience to guide you through the process and help you choose the right solution for your needs.

Which equity release providers are available in Scotland?

A wide range of well-known providers offer their full suite of equity release products in Scotland, including:

• Scottish Widows

• Legal & General

• Aviva

• Standard Life

• Canada Life (UK)

• OneFamily

• Pure Retirement

• More2Life

• Just Retirement

• LV=

• Responsible Lending

Choosing the most suitable provider for your circumstances can take time and careful consideration. This is why seeking professional advice is so important – and, indeed, a legal requirement – before proceeding with equity release.

What viable alternatives are there to equity release?

If you are under 55 and therefore not eligible, or if you simply want to review all your options before deciding on equity release, the following alternatives may be worth considering:

• Retirement Interest-Only Mortgage (RIO) – Similar to equity release, but with mandatory monthly interest payments. For example, Royal Bank of Scotland offers RIOs as part of its mortgage range.

• Remortgaging to release equity – A strong option if you are under 55 and still have an active mortgage, as it may allow you to access additional funds at a lower cost.

• Downsizing – Moving to a less expensive property can release equity without incurring loan interest or fees.

• Using savings and investments – If you have other assets available, it may be more cost-effective to draw on these first.

• Part-time work or freelance income – Returning to work, even on a limited basis, can help supplement your retirement income without reducing the equity in your home.

Frequently Asked Questions