Equity Release and Retirement Interest-Only mortgages allow eligible homeowners to access funds from their property without needing to move.
This can be used to supplement retirement income, make home improvements or support family members, depending on your circumstances.
We explain how it works, what it means for your home and whether it is the right option for you.
For many homeowners, their property represents their largest asset. As mortgage balances reduce and property values evolve, equity builds within the home.
Later-life lending allows eligible homeowners to access part of that equity without selling or moving. However, this is a significant long-term financial decision and must be considered carefully.
Equity release refers to products available to homeowners aged 55 or over, allowing them to release funds secured against their property.
The most common option is a lifetime mortgage. You retain full ownership of your home while borrowing against its value. Funds can be released as a lump sum or in stages.
In many cases, there are no required monthly repayments, as interest can be added to the loan over time.
The loan is typically repaid when the last borrower dies or moves into long-term care.
Most modern lifetime mortgages include a no negative equity guarantee, meaning you will not owe more than the eventual sale value of your property, provided the plan terms are met.
Released equity is often used to repay an existing interest-only mortgage, supplement retirement income, make home improvements, adapt a property for accessibility, or support family members.
The purpose, cost and long-term impact should always be assessed before proceeding.
Equity release reduces the value of your estate and may affect entitlement to certain means-tested benefits. Where interest is rolled up, it compounds over time, increasing the overall amount repayable.
Some plans may include early repayment charges, particularly in the early years.
It is not suitable for everyone, and alternatives should always be explored.
Eligibility will depend on age (typically 55+), property value, property type and condition, any existing mortgage balance and overall financial circumstances.
Each case must be assessed individually.
Later-life lending requires careful, considered advice.
We take time to understand your objectives, explain the costs and long-term implications clearly, and assess whether equity release is appropriate or if alternatives such as downsizing or a retirement interest-only mortgage may be more suitable.
The focus is on helping you make an informed decision, not simply accessing funds.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £495 depending on your circumstances.
We have access to thousands of mortgage deals, including many exclusive deals not available elsewhere, along with specialist lenders who can assist with unique situations.
Equity release refers to later-life lending products that allow eligible homeowners to access some of the value tied up in their property without having to sell and move.
It is a significant financial decision and should only be considered following specialist advice.
There are two main types of equity release:
A lifetime mortgage is a loan secured against your home. You retain full ownership of the property and can release funds either as a lump sum or in stages (drawdown).
Interest can be rolled up, meaning there are no mandatory monthly repayments, although voluntary payments may be permitted. The loan — plus any accrued interest — is typically repaid when the last borrower dies or moves into long-term care.
If there is an existing mortgage, it will usually need to be repaid using the released funds.
A home reversion plan involves selling part or all of your property to a provider in exchange for a lump sum, regular payments or both.
You retain the right to live in the property rent-free for life or until you move into long-term care, but you no longer own the portion that has been sold.
The amount available to release will depend on factors such as your age, property value and lender criteria.
Equity release will reduce the value of your estate and may affect entitlement to certain benefits. Suitability must be assessed carefully.
Equity release is a long-term financial commitment and may not be suitable for everyone.
Key considerations include:
Compound interest — if repayments are not made, interest is added to the loan and accrues over time, reducing the remaining equity in your property.
Impact on inheritance — releasing funds will reduce the value of your estate.
Early repayment charges — some plans include penalties if repaid early.
Effect on means-tested benefits — accessing cash may affect eligibility.
Releasing more than is required can increase long-term costs, so careful planning is essential. In some cases, staged (drawdown) releases may help manage interest more efficiently.
In most cases, yes.
Many lifetime mortgages are portable, meaning you may be able to move home and transfer the loan to a new property, subject to lender approval and the new property meeting their criteria.
If the new property is of lower value, you may need to repay part of the loan. If the property is not acceptable to the lender, the loan would typically need to be repaid in full, which could involve early repayment charges depending on the terms of your plan.
Eligibility will depend on the type of plan and lender criteria.
For a lifetime mortgage, the minimum age is typically 55. Home reversion plans often have a higher minimum age, commonly around 65.
You must:
Own your home (with any existing mortgage usually repaid on completion)
Live in the property as your main residence
Have a property that meets lender criteria in terms of type, condition and minimum value
Each provider applies its own rules, and suitability must be assessed carefully before proceeding.
Timescales will depend on the type of plan and the complexity of your circumstances.
In many cases, equity release can take around 6–8 weeks from application to completion. This allows time for advice, valuation, underwriting and legal work.
More complex cases or property-specific issues may take longer.
Yes. With a lifetime mortgage, which is the most common form of equity release, you remain the legal owner of your property.
The loan is secured against the property, but ownership stays with you. The loan is typically repaid when the last borrower passes away or moves into long-term care.
Not necessarily. Many lifetime mortgages allow interest to be rolled up, meaning no mandatory monthly repayments are required.
However, some plans allow voluntary repayments which can reduce the overall interest that builds up over time.
The most suitable structure will depend on your financial circumstances and long-term plans.
