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What is Equity Release?

Equity release is a way for homeowners, typically aged 55 or over, to access the money (equity) tied up in their property without having to sell and move out. It allows you to release a lump sum, receive smaller regular payments, or a combination of both, while continuing to live in your home for as long as you choose.

Equity release is a regulated financial product in the United Kingdom. All providers and advisers must be authorised and governed by the Financial Conduct Authority (FCA). This regulation exists to protect consumers, ensure advice is suitable, and guarantee that products meet strict standards.

How Equity Release Works

When you take out an equity release plan, you are effectively unlocking some of the value of your home in exchange for an agreed financial arrangement. The amount you can release depends on several factors, including:

You retain the right to live in your home for the rest of your life, or until you move into permanent residential care. The money released is tax-free and can be used for any legal purpose, such as supplementing retirement income, funding home improvements, or helping family members financially.

Types of Equity Release

There are two main types of equity release products available in the UK:

  1. Lifetime Mortgage

    The most common type. You borrow money secured against your home, with interest added over time. The loan, plus interest, is repaid when you die or move into permanent care.

  2. Home Reversion Plan

    You sell all or part of your home to a reversion company in exchange for a lump sum or regular payments, while retaining the right to live there rent-free for the rest of your life.

Consumer Protections

Equity release products are governed by strict UK regulations. This means:

Important Considerations

Equity release is a long-term financial commitment. It may reduce the value of your estate and affect your entitlement to means-tested benefits. Before proceeding, you should consider alternative options and discuss your circumstances with a qualified adviser.

Getting Advice

The Equity Release Help Organisation connects members of the public only with reputable, FCA authorised, whole-of-market advisers. These advisers are qualified to assess your needs, explain all your options, and recommend the most suitable product for your situation.

Initial consultations are free of charge and provided without any obligation to proceed.

Find a Local Equity-Release Lifetime Mortgage Adviser

  • All advisers listed are authorised and regulated by the Financial Conduct Authority (FCA)