Equity release allows homeowners aged 55 and over to access the value tied up in their property without selling or moving. But what if you need more funds in the future? Many homeowners wonder whether they can take out equity release more than once. The good news is that, in most cases, you can—but how you do it depends on your plan and provider.
In this article, we’ll explore the ways you can release more equity, the conditions involved, and the alternatives available if you need additional funds later on.
Can You Take Out Equity Release More Than Once?
Yes! There are two main ways to access additional funds through equity release:
- Drawdown Lifetime Mortgage – If you have a drawdown plan, you can access more funds from your pre-agreed reserve without needing a new loan.
- Further Advance – If your property value has increased or you originally borrowed less than the maximum amount available, you may be able to apply for additional borrowing.
Both options allow you to access more money without needing to switch providers or take out a new equity release plan.
Option 1: Drawdown Lifetime Mortgage
A drawdown lifetime mortgage allows you to release money in stages rather than taking a lump sum upfront. If you have this type of plan, you will be able to withdraw more funds later—as long as you haven’t already used up your pre-agreed drawdown limit.
Benefits of Drawdown Equity Release:
- You only pay interest on the amount you actually withdraw, helping to reduce the overall cost of borrowing.
- You can access funds as and when you need them, giving you greater financial flexibility.
- Your eligibility for means-tested benefits may be better protected compared to taking a large lump sum at once.
If you already have a drawdown lifetime mortgage, check with your provider to see how much remaining funds you have available.
Option 2: Further Advance
If you didn’t borrow the maximum amount available when you first took out equity release, you may be able to apply for a further advance. This is an additional loan on top of your existing lifetime mortgage.
Key Factors That Affect Your Ability to Borrow More:
- Your Age – The older you are, the more you may be eligible to borrow.
- Property Value – If your home has increased in value, you may be able to release more equity.
- Lender’s Criteria – Some providers require a minimum time between the initial loan and applying for a further advance.
A further advance is often treated as a separate loan, meaning it may have different interest rates than your original equity release plan.
Can You Switch Your Equity Release Plan to Release More Funds?
If your current provider doesn’t offer additional borrowing, you may be able to switch to a new equity release plan with a higher loan amount. This is called equity release remortgaging.
When Switching Equity Release May Be a Good Idea:
✔️ If interest rates have dropped since you took out your original plan.
✔️ If your home has significantly increased in value, allowing you to unlock more equity.
✔️ If your current plan doesn’t offer a drawdown facility or further advances.
However, be aware that early repayment charges (ERCs) may apply if you switch providers, so it’s important to weigh up the costs before making a decision.
FAQs About Doing Equity Release More Than Once
Can I Take Out Equity Release Again After My First Loan?
Yes, if you have a drawdown facility or qualify for a further advance, you may be able to release more funds from your property.
Interest rates
The interest rate you’re offered each time you draw down funds could be higher or lower than the original rate.
Only release the amount you need at the time as compound interest is applied from the day that you receive the money.
Is There a Limit to How Much Equity I Can Release?
Yes, the amount you can borrow depends on your age, property value, and lender’s criteria. Most providers allow you to release between 20% and 50% or more of your home’s value over time.
What If My Property Value Has Increased?
If your home has gone up in value, you may be eligible to borrow more through a further advance or by switching to a new equity release plan.
Does Borrowing More Affect My Inheritance?
Yes—taking out additional equity means more of your home’s value will be used to repay the loan and interest when you pass away. However, a lot of plans allow you to ring-fence a portion of your estate for inheritance purposes.
Can I Pay Off Some of My Equity Release Loan to Borrow More Later?
Many modern plans allow voluntary repayments to help reduce interest costs and keep borrowing options open for the future.
Next Steps
If you’re considering releasing more equity, it’s important to check your options and compare costs. To explore what’s available:
- Speak to an expert on our Equity Release Adviser page.
- Use our Equity Release Calculator to estimate how much more you could unlock.
- Read more about equity release in related articles:
By understanding your options, you can make an informed decision and access additional funds in a way that suits your financial needs.
