Equity Release: Is It Right for You?

Equity release allows homeowners aged 55 and over to access the equity tied up in their property without having to sell or move. It is a major financial decision that requires careful consideration.

Types of Equity Release

• Lifetime mortgage — The most common type. You borrow against your home, interest rolls up, and the loan is repaid when you die or move into care.
• Home reversion — You sell a share of your property to a provider in exchange for a lump sum or regular payments.

Key Risks to Understand

• Compound interest can significantly reduce the inheritance you leave
• It may affect your eligibility for means-tested benefits
• Early repayment charges can be very high

Regulation and Protection

Always use a provider that is a member of the Equity Release Council. This guarantees a no-negative-equity promise, meaning you will never owe more than your home is worth. Never proceed without independent financial advice from an FCA-regulated adviser.