Lifetime mortgage
You borrow against your home. It’s repaid, with interest, when you die or move into long-term care.
Suits: Usually homeowners aged 55 or over
Money from your home
Equity release
A way to take money out of your home without moving. It can help, and it can cost more than it looks, so it needs proper advice.
Plain English, and nobody will try to sell you anything.
The two kinds of equity release.
Both let you stay in your home. They differ in whether you borrow, or sell a share.
Home reversion
You sell part or all of your home, for less than it’s worth, and live there rent-free.
Suits: Usually homeowners aged 60 or over
Retirement income
Your pensions and savings may be the better place to start.
Suits: Anyone planning for retirement
Think it through first.
Advice is a must. Equity release needs advice from a regulated adviser, who should look at the alternatives too.
Interest adds up. On a lifetime mortgage, interest usually rolls up, so the debt can grow quickly.
It changes what you leave. Less of your home’s value goes to the people you leave it to.
Benefits can change. Extra money can affect means-tested benefits. Your adviser should check.
Where to start.
Take your time. It’s a big decision, and it’s hard to undo.
Step 1Get free guidance.
MoneyHelper explains equity release and the alternatives, free and impartial.
Step 2Speak to a regulated adviser.
They’ll look at your whole situation and tell you whether equity release suits you.
Step 3Talk to your family.
It changes what you leave behind, so it helps if nobody is surprised later.
Equity release questions.
Short answers to what people ask before they look into it.
Do I need advice to get equity release?
Yes. You need advice from a regulated financial adviser, and a solicitor to act for you. Check the adviser is on the FCA register.
Could I owe more than my home is worth?
Most plans come with a no negative equity guarantee, so the debt can’t be more than your home sells for. Check your plan has one.
Can I still leave my home to my family?
Your family inherits what’s left after the plan is repaid. That may be a lot less than they expect, which is why it’s worth talking to them.
Can I move house later?
Many plans let you take the plan to a new home, if the new home suits the lender. Ask about this before you sign.
Are there alternatives?
Often: downsizing, using savings or pensions, or help from family. A good adviser will talk them through with you.
Do you arrange equity release?
No. We’ll point you to free guidance and to where you can find a regulated adviser.
Useful information
Free guidance
MoneyHelper explains equity release, free and impartial. See moneyhelper.org.uk.
Check an adviser
Make sure any adviser is authorised on the FCA register.
If something goes wrong
Complain to the firm first. If you’re not happy with their answer, you can go to the Financial Ombudsman Service.
Still need support?
Ask a real person where to start, and we’ll point you to free guidance and regulated advice.
Monday–Thursday 9am–7pm, Friday 9am–3pm