Equity Release
Access cash from your property in retirement—stay in your home for life
What is equity release and how does it work in the UK?
Equity release lets homeowners aged 55+ access cash tied up in their property without selling or moving. The main type is a lifetime mortgage—borrow against your home with interest rolling up, repaid when you die or move into care. No monthly repayments. All FCA-regulated plans include no negative equity guarantee.
Specialist later-life lending advice with full market access.
What is equity release and how does it work in the UK?
Equity release lets homeowners aged 55+ access cash tied up in their property without selling or moving. The main type is a lifetime mortgage—you borrow against your home with interest rolling up, repaid when you die or move into care. There are no monthly repayments. All FCA-regulated plans include a no negative equity guarantee.
Equity Release: Quick Summary
- •Available from age 55+, with more released the older you are
- •No monthly payments required—interest rolls up until property sale
- •No negative equity guarantee means you'll never owe more than home value
- •At 6% interest, £80k borrowed becomes £191k after 15 years (compound effect)
- •Inheritance protection options can guarantee 25-50% of property remains
Content reviewed: 13 January 2026
What is it?
A way for homeowners aged 55+ to access cash tied up in their property without selling or moving. Interest rolls up over time and the loan is repaid when you die or move into permanent care. No monthly payments required.
Who qualifies?
- Homeowners aged 55+ (some lenders 60+)
- Property owners with no or low mortgage
- Those seeking to supplement retirement income
- Homeowners wanting to help family with deposits
- Retirees needing funds for care or home improvements
Typical deposit
No deposit required—you're borrowing against existing property equity. Amount available depends on age and property value.
Typical rates
5-8% fixed for life. Higher than standard mortgages but includes no negative equity guarantee. Interest compounds annually.
Documents needed
- Property valuation
- Proof of age (passport/driving licence)
- Details of existing mortgage if any
- Solicitor's certificate
- Independent legal advice confirmation
Real Example
Situation: Couple aged 72 and 70, £400,000 property, no mortgage, wanting £80,000 to gift to grandchildren for house deposits.
Outcome: Released £80,000 at 5.8% fixed for life. At 6% compound interest, debt would grow to £191,000 after 15 years if no repayments made.
What is Equity Release?
Equity release is a way for homeowners aged 55 and over to access the wealth tied up in their property without selling or moving. It allows you to release cash (as a lump sum, regular income, or reserve facility you can draw on when needed) while continuing to live in your home for the rest of your life. The two main types are lifetime mortgages (where you borrow against your home with interest rolling up until you die or move into permanent care) and home reversion plans (where you sell part or all of your property to a provider for less than market value and live there rent-free for life).
All FCA-regulated equity release products include a 'no negative equity guarantee'—meaning you'll never owe more than your property is worth when it's sold, even if the debt exceeds the property value due to compound interest and house price changes. Typical borrowing amounts range from 20-50% of your property's value depending on your age—the older you are, the more you can release. Interest rates are typically 5-8% (higher than standard mortgages) and compound annually. Most lifetime mortgages require no monthly repayments—interest rolls up and both loan and interest are repaid when your property is eventually sold.
Equity release is a significant lifetime decision that reduces the inheritance you'll leave to family members. For example, releasing £60,000 at age 70 with 6% interest means the debt grows to £143,000 after 15 years, substantially reducing what's left for beneficiaries. However, it can fund important goals like helping children onto the property ladder, clearing debts, funding home improvements or care costs, or supplementing retirement income. Professional independent advice is essential—advisers will assess whether equity release suits your needs better than alternatives like downsizing, claiming benefits, or standard mortgages, and ensure you understand the long-term implications for yourself and your family.
Equity Release is arranged by introduction only.
Key Benefits of Equity Release
Release equity from your home without selling or moving—receive lump sums or regular income
Stay in your home for life with FCA-regulated products offering no negative equity guarantee
Gift deposits to children, clear debts, fund home improvements, or supplement retirement income
Most equity release products require no monthly payments—interest rolls up until property sale
Expert Tips & Insights
Equity release has two main types: Lifetime Mortgages (most common, 95% of market)—borrow against your home, interest rolls up, repaid when you die or move into care. You keep ownership. Home Reversion Plans (5% of market)—sell part/all of your home to a provider for less than market value, receive cash, live rent-free for life. Provider gets their % when property sells. Also: Retirement Interest-Only mortgages—newer option, pay monthly interest, capital repaid on death/care. Each suits different circumstances—professional advice essential.
Minimum age: 55 for most lifetime mortgages (some lenders require 60+), 60-65 for home reversion plans, 55 for retirement interest-only mortgages. The older you are, the more you can release—typical maximums: 55 years = 20-25% of property value, 65 years = 30-35%, 75 years = 40-45%, 85+ years = 50-55%. Joint applications use the younger person's age. Couples where one is under 55 must wait until both qualify, or the older person applies solo (risky if they die first).
Amount depends on: age (older = more), property value (£70k-£100k minimum in most cases), property type (standard houses easier than flats/non-standard), and health (some lenders offer enhanced rates for health conditions). Typical: £200k house, age 70 = release £60k-80k (30-40%). Lifetime mortgages: release 20-50% depending on age. Home reversion: receive 30-60% of market value for % sold. Retirement interest-only: borrow up to 75% with affordability checks.
Lifetime mortgage rates: 5-8% annually (higher than standard mortgages' 3-6%), compounding annually. Interest rolls up—£50k borrowed at 6% becomes £89k after 10 years, £159k after 20 years. This significantly reduces inheritance. Costs include: arrangement fees (£1,500-3,000), valuation (£300-500), solicitor fees (£500-1,500), and adviser fees (£1,000-3,000 or % of advance). Total costs: £3,000-8,000. Some products offer inheritance protection guaranteeing a % of property value remains for beneficiaries.
Equity release significantly reduces inheritance for beneficiaries. Example: £300k house, release £80k at age 70, live 15 years. At 6% interest, debt grows to £191k, leaving £109k inheritance (vs £300k without). Family must understand and agree—especially if expecting inheritance. Some products offer 'inheritance protection' guaranteeing 25-50% of property value remains. Downsizing protection allows moving to smaller home without penalties. Always involve family in discussions—unexpected news after death causes disputes and resentment.
FCA-regulated equity release includes mandatory safeguards: No Negative Equity Guarantee (you'll never owe more than property value—lender absorbs any shortfall), fixed or capped interest rates (protecting from rate increases), right to remain in your home for life (can't be evicted), and portability (can move to another property subject to lender approval). Members of the Equity Release Council must meet additional standards including qualified advice, clear product literature, and fair treatment. Never proceed without independent specialist equity release advice.
Frequently Asked Questions
Lender Criteria
Related Services
People Also Ask About Equity Release
Important Equity Release Warning:
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. This is a lifetime commitment secured against your home. Releasing equity could affect your tax position and may impact what you can leave to your family. We recommend you discuss this with your family and seek independent legal advice before proceeding.
Your home may be repossessed if you do not keep up repayments on a lifetime mortgage that requires them.
Considering Equity Release?
Our FCA-regulated equity release specialists provide independent advice, helping you understand if equity release is right for you, comparing all options, and protecting your interests and family inheritance.