Equity release advice
Understand your later-life lending options before releasing money from your home.
Equity release can provide access to money tied up in your home without requiring you to move, but it is a significant long-term decision. We help you understand the costs, risks, alternatives and effect on your future before any recommendation is made.
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits and local-authority support. With a lifetime mortgage, compound interest can cause the amount owed to increase substantially over time.
What is equity release?
Accessing value from your home in later life.
There are two main forms of equity release: a lifetime mortgage and a home reversion plan.
A lifetime mortgage is a loan secured against your home. You continue to own the property. Depending on the plan, interest can be paid, partly paid or added to the loan. The borrowing is generally repaid when the home is sold following death, a permanent move into long-term care, or another repayment event under the mortgage terms.
With home reversion, you sell all or part of your home to a provider, usually for less than its full market value, while retaining the right to live there under the plan terms.
The main options
Equity release is not one single product.
Lifetime mortgage
You borrow against the value of your home while retaining ownership.
- Interest may roll up if you choose not to pay it.
- Some plans allow voluntary interest or capital repayments.
- Early repayment charges may apply.
- Provider minimum ages vary, commonly around 50–55.
Home reversion
You sell all or a proportion of your property to a provider and retain the right to remain in the home under the agreement.
- You no longer own all of the property sold.
- The amount received can be substantially below market value.
- Independent legal advice is important and required under Equity Release Council standards for member plans.
- Your estate retains only the share of the property you continue to own.
Before recommending equity release
The alternatives matter just as much as the product.
A recommendation should consider your wider circumstances rather than treating the property as an isolated source of money.
Alternatives to consider
Releasing equity should not be the automatic answer.
Downsizing
Selling and moving to a less expensive property may release capital without creating a long-term loan.
Retirement interest-only
A RIO mortgage can be an alternative where you can meet the lender's affordability requirements and maintain interest payments.
Existing resources
Savings, investments, pensions or other assets may provide alternatives, although tax and retirement-income consequences need consideration.
Do nothing yet
Where the need is not immediate, delaying borrowing can sometimes avoid additional years of interest accumulation.
Our process
Advice before action.
Understand your need
Establish what you want to achieve, your finances, property, family circumstances and future plans.
Explore alternatives
Consider other ways of meeting the objective before determining whether equity release should be considered.
Research & recommend
If appropriate, assess suitable later-life lending solutions and explain the costs, risks and long-term implications.
Legal & completion
If you proceed, the application and legal process are completed before funds are released.
Frequently asked questions
Questions worth asking before you decide.
Do I still own my home with a lifetime mortgage?
Yes. A lifetime mortgage is secured against your home, but you continue to own it. You remain responsible for meeting the conditions of the mortgage, including requirements relating to the property.
Do I have to make monthly repayments?
Not necessarily. Some lifetime mortgages allow interest to be added to the loan, while others allow or require payments. If interest is rolled up, compound interest increases the debt over time.
What happens to my inheritance?
Equity release usually reduces the amount of property value remaining for your estate. The eventual effect depends on the amount released, interest, property value and the terms of the plan.
Could equity release affect my benefits?
Yes. Money released from your home can affect entitlement to means-tested benefits and potentially local-authority support for care, so this should be considered before proceeding.
What is a no-negative-equity guarantee?
Many lifetime mortgages meeting Equity Release Council standards include this protection. Subject to the applicable terms, it is designed so that the amount repaid following sale does not exceed the property's sale proceeds.
Is a RIO mortgage the same as equity release?
No. A retirement interest-only mortgage is a different type of later-life mortgage. You normally pay the interest each month and must satisfy affordability requirements. It can be an alternative worth considering.
A lifetime mortgage is a loan secured against your home. Equity release can be expensive and may be difficult or costly to repay early. Your adviser should explain the risks, alternatives, fees and long-term effect before you decide whether to proceed.
Later-life lending
Start by understanding all of your options.
A conversation does not commit you to equity release. It starts with understanding what you want to achieve and whether another solution could be more appropriate.