Equity release mortgages
Find the right equity release plan with MoneySuperMarket
What is equity release?
Equity release is a way of accessing some or all of the wealth tied up in your home without having to move.
The most common methods of equity release are lifetime mortgages and home reversion plans.
Equity release is not risk free. If you are considering equity release, it is important to discuss matters with your family. This is especially true if you intend to make them beneficiaries of your will.
You must take professional advice from a qualified equity release adviser.
Am I eligible for equity release?
Every lender will have their own set of terms and conditions, but there are common requirements that providers share.
You're over 50 years old, or if you're borrowing jointly, both applicants
You're a UK homeowner
Your property is valued at £70,000 or more and in a reasonable condition
It's your primary residence
If you're unsure, you can check your eligibility through our partner Equity Release Supermarket.
What are the different types of equity release?
There are two main types of equity release plan, so it’s important to consider which might be better for you. You will need to take expert advice before entering into an equity release arrangement.
Lifetime mortgages
This is when you take out a mortgage against the value of your property. You have the option of making voluntary payments to the lender. The debt will then be repaid when it’s sold if you move (for example, into permanent care) or after your death. For most lifetime mortgages on the market, you must be at least 55 to be considered.
Home reversion plans
This is when you sell part, or all, of your home for a tax-free cash sum and continue to live there rent-free for the rest of your life. The property will then be sold if you move (for example, into permanent care) or after your death. For most home reversion plans, you must be at least 70 to be considered.
Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. The loan, interest and any fees will be taken from your estate on death or long-term care of the last surviving partner. To understand the features and risks, request a personalised illustration from one of our expert financial advisers.
Use our equity release calculator
Simply enter a few details and we'll tell you how much money you could be able to release.
How do I release equity from my property?
If equity release is right for you, the process can take up to 4 to 6 weeks. It always starts with seeking advise from a qualified adviser.
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Speak with an equity release adviser
Discuss your plans with a qualified adviser. Everyone's situation is different, so it's important you find an equity release plan that's right for your goals and current financial arrangements.
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Submit your application for approval
After speaking with an adviser and agreeing to their recommendations, your adviser will submit the necessary paperwork on your behalf.
Your property is valued and your solicitor instructed to manage the legal requirements.
Once approved, your equity release provider makes a formal mortgage offer.
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Your funds are released
Upon completion, your equity release provider transfers the agreed sum into your nominated bank account as a lump sum or a series of drawdown payments, depending on which equity release plan you've chosen.
Some plans let you make voluntary repayments or monthly interest payments to reduce the balance payable on your death, but these are optional and no monthly repayment is due otherwise.
What are the pros and cons of equity release?
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The advantages
You can release wealth from your property and receive tax-free money as a lump sum or future drawdown payments
You can reduce your inheritance tax liabilities with the right plan
You can stay in your home until you pass away or move into long-term residential care
You're free to spend the funds however you wish
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The disadvantages
It reduces the amount your beneficiaries receive from your estate
It might affect your entitlement to benefits and help from your local authority
It may come with restrictions on adapting your home. This is because lenders will want your home to remain in good condition, meaning you’ll need to keep it this way
You could incur a substantial penalty if you repay your equity release plan early
What can I use equity release for?
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Home improvements
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Inheritance planning
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Repaying existing mortgages
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Holidays, cars, and lifestyle expenses
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Investing in property
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Debt consolidation
Get specialist advice from our equity release partner, Equity Release Supermarket
To ensure you get the right equity release mortgages for you, MoneySuperMarket has partnered with Equity Release Supermarket, who are the UK's number one, independent, whole-of-market advisory firm.
They are regulated by the FCA, and they are long standing members of the Equity Release Council who set the standards for the industry.
Their experts offer impartial advice and will need to speak to you regarding your requirements.
Get personalised advice online or call them free on 0800 088 5954.
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What can you use equity release cash for?
There are no restrictions on how you can spend the proceeds of equity release. You can:
Supplement your pension
Adapt your accommodation
Pay for a holiday
Clear your mortgage
What is a lifetime mortgage?
A lifetime mortgage is when you borrow against the value of your home. You retain ownership of the property and can continue to live in it until you die or move into permanent care (this applies to the second person in a couple). At this point, the property is sold and the mortgage is repaid.
With some lifetime mortgages, mortgage interest is added to the capital debt and rolled up. With others, you can make monthly payments to clear the interest as you go.
What is a home reversion?
With a home reversion, you sell a portion of your home for a price below the market value. When you die or move into permanent care (this applies to the second person in a couple), the property is sold. The proceeds are then divided between you/your estate and the plan provider.
How does home reversion work?
If your home is worth £300,000 and you decide to sell 30% (£90,000 worth) via a home reversion, the plan provider may agree to pay you, say, £50,000.
When the property is sold, the company is entitled to 30% of the sale price. If the house has increased in value to £400,000, for example, it will receive £120,000. If the property has fallen in value to £200,000, it will receive £60,000.
Are equity release products regulated?
Yes. Lifetime mortgages and home reversion plans are regulated by the Financial Conduct Authority, as are the companies that offer them.
Most (over 90%) of the companies in the equity release sector belong to the Equity Release Council, which promotes high standards of professional practice among its members.
Is there any risk associated with equity release?
Members of the Equity Release Council (ERC) trade body, which represents around 90% of the market, attach a ‘no negative equity’ guarantee to the plans they sell.
This means that if the value of the property falls below the level of the debt, the company takes the hit and won’t pursue you or your estate for the shortfall.
Customers who take out equity release via providers affiliated with the ERC also benefit from:
The option to make payments without incurring a penalty. This means customers can mitigate or eradicate the effect of roll-up interest
Fixed rates for each release. Or variable rates that are capped for the full loan term
The right to remain in the property for life. Or until such time as the customer needs to move into long-term care
The right to move to another suitable property
Will my benefits be affected?
Boosting the amount of cash you have could affect your entitlement to means-tested benefits, such as the pension credit and universal credit. It is important to work out how you might be affected before you take the plunge with equity release.
How long does equity release take?
This tends to depend on the lender and on your own personal circumstances. But you can generally expect equity release to take between six to eight weeks.
Bear in mind, though, that it may sometimes up to 12 weeks.
Tell your family
Let your family know what arrangements you make regarding your home
Take advice
Always take expert advice before committing to an equity release plan
Protect yourself
Make sure your equity release plan has a ‘no negative equity’ guarantee
Assess your benefits
Check to see whether your entitlement to state benefits will be affected
Choose how you spend
There are no restrictions on how you can spend the money you raise
Read the small print
There may be restrictions on the type of work you can have done to your home
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Reviewed on 22 Dec 2025