Alternatives to Equity Release

Sometimes equity release is not the right option, and you should consider whether an alternative solution may be more suitable.

Downsizing

• Sell your current home and buy a smaller, cheaper property.

• Frees up capital without taking on debt.

• May reduce maintenance and running costs.

• Emotional attachment or location preferences can be barriers.

Retirement Interest-Only Mortgage (RIO)

• Similar to a lifetime mortgage but you pay interest monthly.

• The loan is repaid when you die or move into care.

• No need to prove income beyond ability to pay interest.

• Keeps the loan balance stable over time.

Traditional Mortgage or Remortgage

• If you're still working or have pension income, you might qualify for a standard mortgage.

• Useful for releasing funds or consolidating debt.

• Usually has a fixed term and affordability checks.

Selling Part of the Property (e.g. to Family)

• You could sell a share of your home to a family member.

• Keeps the property in the family and may avoid commercial equity release.

• Requires legal and financial advice to structure fairly.

Renting Out Part of the Home

• Generate income by letting a room or converting part of the property.

• Can be tax-efficient under the Rent a Room Scheme (up to £7,500 tax-free per year).

• May not be suitable for everyone due to privacy or lifestyle preferences.

Local Authority or Government Schemes

• Some councils offer home improvement loans, grants, or support for low-income homeowners.

• Schemes vary by location and eligibility.

Using Savings or Investments

• If you have ISAs, pensions, or other investments, drawing from these may be more cost-effective.

• Avoids interest charges and preserves home equity.

Family Support or Gifting

• Family members may be willing to gift or lend money.

• Can be structured formally to avoid future disputes or inheritance tax issues.