Equity release
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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 advice 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.
Can I get take out an equity release plan if I still have a mortgage?
Potentially, yes. However, this will depend on the value of your home and the amount you owe. It will also generally need to be repaid as part of the equity release arrangement, usually using some of the money you release.
Can I move home after taking out an equity release plan?
Yes. You can still move to a different property in the future, provided the equity release provider agrees.
Can I repay an equity release plan early?
Yes. But you could face early repayment charges, depending on the terms of your plan. Check the Ts and Cs carefully.
Will equity release affect my inheritance?
Yes. It can reduce the value of the estate you leave behind. You need to discuss your plans with loved ones before making any decision.
Are equity release products regulated?
Yes. Providers are advisers are regulated by the Financial Conduct Authority (FCA).
You must get advice from a qualified equity release adviser before taking out an equity release plan. Many firms are also members of the Equity Release Council UK, an industry body which promotes high standards of professional practice among its members.
What is a ‘no-negative equity’ guarantee?
Members of the Equity Release Council, offer this protection which means neither you – nor your estate – will ever owe more than your home is worth when it is sold to repay an equity release plan. In other words, your family cannot be left with a debt to the lender after you are gone.
Will equity release affect my benefits?
Yes. Releasing money from your home could affect your entitlement to means-tested benefits, such as pension credit and universal credit. This is because the money you receive could increase your income or savings. Before you proceed, your adviser should check how taking out a plan could affect any benefits you receive.
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 15 Oct 2026 by
