Equity Release – Frequently Asked Questions (FAQs)

1. What is equity release?

Equity release allows homeowners aged 55 or over to access the value tied up in their property without having to move. The money released can be taken as a lump sum, regular income, or both.

2. What types of equity release are available?

There are two main types:

  • Lifetime Mortgage: A loan secured against your home, with interest typically rolled up and repaid when you die or move into long-term care.

  • Home Reversion Plan: You sell part or all of your home to a provider in exchange for a lump sum or income, while retaining the right to live there rent-free.

3. Who is eligible for equity release?

Eligibility usually requires:

  • Being aged 55 or over (65+ for home reversion plans).

  • Owning a property in the UK.

  • The property meeting minimum value and condition criteria.

4. Will I still own my home?

  • With a lifetime mortgage, yes—you retain full ownership.

  • With a home reversion plan, no—you sell part or all of your home to the provider.

5. Do I have to make monthly repayments?

  • Lifetime mortgages often have no required repayments, though some allow voluntary or interest-only payments.

  • Home reversion plans do not involve repayments.

6. How much can I release?

The amount depends on:

  • Your age.

  • The value of your property.

  • The type of plan. Older applicants typically qualify for higher release amounts.

7. Will equity release affect my benefits?

Yes, releasing equity may impact means-tested benefits such as Pension Credit or Council Tax Support. A financial adviser can help assess this.

8. Can I move home after taking out equity release?

Yes, many plans are portable, allowing you to move to a new property (subject to provider approval and suitability).

9. What happens when I die or move into care?

  • The property is sold.

  • The provider is repaid from the sale proceeds.

  • Any remaining value goes to your estate.

10. Is equity release safe?

If you choose a provider regulated by the Financial Conduct Authority (FCA) and a member of the Equity Release Council, you benefit from:

  • A no negative equity guarantee.

  • The right to remain in your home for life.

11. What are the alternatives to equity release?

Alternatives include:

  • Downsizing.

  • Retirement interest-only mortgages.

  • Traditional remortgaging.

  • Renting out part of your home.

  • Financial support from family.

12. Do I need financial advice?

Yes. Equity release is a major financial decision. You should speak to a qualified equity release adviser to explore your options and understand the long-term impact.