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Your equity release questions, answered

Honest, jargon-free answers to the questions people ask most about equity release and later life lending. If your question isn't here, just ask — I'm always happy to help.

About Equity Release

Equity release is a way for homeowners aged 55 and over to access some of the money tied up in their property without having to sell it and move out. The money you release is tax-free and can be taken as a lump sum, a regular income, or in stages. You continue to live in your home, and the loan is typically repaid when you pass away or move into long-term care.
With the most common form — a lifetime mortgage — a lender advances you money secured against your home. You retain full ownership. Interest is charged on the amount borrowed, and unless you choose to make payments, that interest is added to the loan. When the last borrower dies or moves into permanent care, the property is usually sold and the loan repaid, with anything left over passing to your beneficiaries.
A lifetime mortgage is the most popular type of equity release. It's a loan secured against your home that you never have to repay during your lifetime, while you keep 100% ownership. You can choose to let the interest roll up, or make optional payments to control the balance. Read more on our equity release page →
A home reversion plan is the less common form of equity release. Rather than borrowing against your home, you sell all or part of it to a provider in exchange for a tax-free lump sum or income, while keeping the right to live there rent-free for life. Because you give up a share of ownership, these plans only suit specific circumstances, which we'd discuss carefully before considering.
The amount depends mainly on your age and your property's value, and sometimes your health and lifestyle. As a general rule, the older you are, the higher the percentage of your home's value you can release. After a short conversation about your circumstances, I can give you a clear indication of what may be available to you.
As a broad guide, the percentage of your home's value you can release rises with age. Someone aged 60 might release a smaller proportion than someone aged 70, who in turn could typically release less than someone aged 80. Each lender uses its own scale, and certain health or lifestyle factors can increase the amount available. The only way to know your figure precisely is a personalised illustration, which I can prepare for you.
Yes. Many people use equity release specifically to clear an existing mortgage. The outstanding mortgage is simply repaid from the funds you release, as a condition of the plan. This can remove your monthly mortgage payments entirely, which is often a major part of the appeal.
The money is yours to use as you wish. Common uses include clearing an existing mortgage or debts, home improvements, supplementing retirement income, helping children or grandchildren onto the property ladder, funding travel or a special purchase, or simply providing peace of mind. I'll always make sure the reason fits your wider financial picture.

Costs & Interest

Equity release interest rates vary between lenders and depend on factors such as the plan type, how much you borrow relative to your home's value, and current market conditions. As a whole-of-market adviser, I compare the rates across all the major later life lenders to find the most competitive option suited to your circumstances.
With most lifetime mortgages, yes — the interest rate is fixed for the life of the plan, giving you certainty about how the balance will grow over time. This is an Equity Release Council standard for lifetime mortgages. I'll always confirm the rate terms clearly before you proceed so there are no surprises.
If you let the interest roll up without making payments, then yes — the amount you owe will grow over time, because interest is charged on the interest already added (compounding). However, many modern plans let you make voluntary payments to slow or stop this growth, and choosing drawdown means you only pay interest on what you've actually taken. This is exactly the kind of thing good advice helps you manage.
Yes. Many lifetime mortgages now allow voluntary payments — you can pay some or all of the monthly interest if you wish, which keeps the balance from growing, or make ad-hoc overpayments (often up to a set percentage each year) without penalty. This flexibility can preserve significantly more of your home's value for your family.
There are some costs involved, which typically include a valuation fee, solicitor's fees for the independent legal advice you'll receive, and sometimes a lender arrangement fee and an adviser fee. I'll set out every cost transparently before you commit, so you have a complete picture with no hidden surprises.
Some plans carry early repayment charges if you repay the loan in full within a certain period, while others have more flexible or fixed-term charges. If the possibility of repaying early matters to you, I'll prioritise plans with favourable early repayment terms. It's an important consideration I always discuss upfront.
Yes, you can repay equity release early, though depending on the plan an early repayment charge may apply within a defined period. Some plans waive these charges in certain circumstances, such as moving into care or the death of a partner. If early repayment flexibility is important to you, I'll factor that into the plan I recommend.

Your Home

With a lifetime mortgage — the most common form of equity release — yes, you retain 100% ownership of your home throughout your life. A home reversion plan is different, as you sell all or part of the property, but these are far less common and only suit specific situations.
Yes. The Equity Release Council guarantees the right to move to another suitable property and transfer your plan with you, subject to the lender's criteria, without penalty. So taking equity release doesn't tie you to your current home forever — an important protection that's built into every plan I recommend.
Yes, downsizing is possible. Depending on your plan and how long you've held it, you may be able to transfer the plan to your new home, or repay it — and many plans include downsizing protection that allows you to repay without an early repayment charge after a certain period. We'd plan for this possibility from the outset if it's something you're considering.
Yes. As you continue to own and live in your home, you're responsible for keeping it in good repair and adequately insured, much as you would be normally. This protects both you and the lender, as the property is the security for the loan. The requirements are reasonable and no different from being a responsible homeowner.

Family & Inheritance

Yes — equity release does reduce the value of your estate, and that's an honest fact you should weigh carefully. The loan and any rolled-up interest are repaid from your home's value, leaving less to pass on. However, you can reduce this impact considerably through inheritance protection, drawdown, or making interest payments. I always make sure your inheritance wishes are central to the advice.
Yes. Many modern plans offer an inheritance protection guarantee, which lets you ring-fence a fixed percentage of your home's value so that it's guaranteed to pass to your beneficiaries, regardless of how the loan grows. If leaving an inheritance matters to you, this is a valuable feature I'll build into your plan.
No. The loan is repaid from the sale of your property, not from your family's own money. Thanks to the no negative equity guarantee, your children will never inherit a debt — even if the loan ends up being more than the home sells for, neither they nor your estate will ever owe the difference.
When the last borrower passes away, your estate's executors notify the lender, and the property is usually sold. The loan plus any accrued interest is repaid from the sale proceeds, and anything remaining passes to your beneficiaries as part of your estate. Your family typically has a reasonable period to sell the property, so there's no undue pressure during a difficult time.
If you move permanently into long-term care, the plan usually comes to an end in the same way as on death — the home is sold and the loan repaid. For couples, this only applies when the last remaining borrower moves into care, so a surviving partner can continue living in the home undisturbed.
Equity release can have inheritance tax implications, and in some cases it's used as part of estate planning, since releasing and gifting money may reduce the value of your estate over time. However, the rules around gifting and the seven-year rule are complex, and tax treatment depends on your individual circumstances. I'd always recommend speaking to a tax specialist alongside the equity release advice, and I can help coordinate that.

Benefits & Tax

No. The money you release through equity release is completely tax-free, because it's a loan rather than income. However, what you then do with the money could have tax consequences — for example, if you invest it and earn interest, or if it affects your estate for inheritance tax. I'll always flag where specialist tax advice would be worthwhile.
It can. Releasing money and holding it as savings may affect entitlement to means-tested benefits such as Pension Credit or Council Tax Support, because these depend on your savings and capital. This is a crucial part of the advice, and I always carefully assess the impact on any benefits you receive before recommending equity release — sometimes it influences how much you should release, or whether you should at all.
No. Your basic State Pension is not means-tested, so equity release won't affect it. It's only means-tested benefits, such as Pension Credit, that could be affected by holding additional savings. I'll always clarify exactly which of your benefits, if any, might be impacted.

Safety & Consumer Protection

Modern equity release is heavily regulated by the Financial Conduct Authority and protected by Equity Release Council standards. The problematic schemes of decades past no longer exist. Today's safeguards include the no negative equity guarantee, the right to remain in your home for life, the right to move home, and mandatory independent legal advice. That said, it's a major decision — which is precisely why it can only be arranged through a qualified adviser.
There's no hidden "catch", but there are genuine trade-offs you should understand. The main one is that, if you let interest roll up, the amount owed grows over time and reduces the inheritance you leave. It may also affect means-tested benefits. Equity release isn't right for everyone — and a good adviser will tell you honestly when another option, or doing nothing, would serve you better. My job is to make sure you go in with your eyes fully open.
With a lifetime mortgage from an Equity Release Council member, no — you have a guaranteed right to live in your home for life, and there are no monthly payments you could fall behind on. This is fundamentally different from a standard mortgage. As long as you meet the basic terms, such as keeping the property maintained and insured, your home is secure for the rest of your life.
The no negative equity guarantee means you can never owe more than your home is worth when it's sold. Even if the loan plus interest grows beyond the property's value, neither you nor your estate will ever have to pay the difference. It's a cornerstone Equity Release Council protection, included in every plan I recommend, and it's what gives families real peace of mind.
Equity release is a significant, long-term commitment, and the right choice depends entirely on your personal circumstances. Independent, whole-of-market advice means I'm not tied to any one lender — I compare the whole market to find what's genuinely best for you, and I'll tell you honestly if equity release isn't the right answer. In fact, regulation requires that equity release can only be taken out with professional advice, precisely because it matters so much.

The Advice Process

The first appointment is a relaxed, no-obligation conversation to understand your situation, your goals, and any concerns. There's no jargon and no pressure. I'll explain how the different options work, answer your questions, and only if it's appropriate, begin to explore what might suit you. It's as much about whether equity release is right for you at all as it is about which plan.
Not at all. There's absolutely no obligation to proceed. You're free to take away the information, discuss it with your family, and think it over for as long as you need. Many people have an initial conversation simply to understand their options. The decision is always entirely yours.
Yes — whatever suits you best. I can meet you in person at your home, speak by telephone, or hold a video call. Many clients appreciate the comfort and convenience of discussing things from their own living room, often with family present. The choice is entirely yours.
Yes. For equity release, taking independent legal advice from a solicitor is a requirement, and an important safeguard. Your solicitor, whom you choose, will ensure you fully understand the legal commitment before anything is finalised. I'll guide you through this step and can suggest experienced equity release solicitors if you'd like.
Absolutely — I warmly encourage it. Equity release affects the whole family, and I find that involving adult children or trusted relatives leads to better decisions and greater peace of mind for everyone. Their questions are always welcome, and it helps ensure everyone understands what's being considered.

Alternatives & Common Concerns

No, and any good adviser will explore the alternatives with you first. Depending on your circumstances, downsizing, a Retirement Interest Only (RIO) mortgage, a standard later life mortgage, using existing savings, or other borrowing might suit you better. Part of my role is to make sure equity release is genuinely the right choice before recommending it. Learn about RIO mortgages →
A RIO mortgage lets you pay only the monthly interest, so the balance you owe never grows. The loan is repaid when you die or move into care. For homeowners with reliable income, a RIO can be considerably more cost-effective than equity release, because you're not letting interest roll up. It's one of the alternatives I'll always consider for you. Read more about RIO →
For some people, yes. If you're open to moving, selling your home and buying somewhere smaller can release money without taking on any borrowing or interest. But downsizing has its own costs and emotional considerations, and isn't right for everyone, especially those who wish to stay in a much-loved family home. I'll help you weigh it honestly against equity release.
It depends entirely on your circumstances — which is the honest answer. For the right person, equity release can transform their retirement, clearing a mortgage, providing financial freedom, or helping family. For others, an alternative is better, or there's no need to borrow at all. There's no one-size-fits-all answer, and that's exactly why personalised, independent advice matters so much.
Yes. At every stage up to completion you're free to change your mind, with no obligation whatsoever. The process is deliberately unhurried, with built-in time to reflect and to take independent legal advice. Nothing is ever rushed, and the final decision is always entirely yours.
Yes, and for jointly-owned homes it's usually essential that both partners are party to the plan. The plan is then based on the younger partner's age, and crucially, the surviving partner can continue living in the home for life. This ensures neither of you is ever left vulnerable, which is a key part of how I structure advice for couples.
Often yes, though leasehold properties — particularly flats — need a sufficiently long remaining lease term to satisfy the lender, and some lenders are more flexible than others. Leasehold cases need careful handling, and finding the right lender is exactly where specialist, whole-of-market advice proves its worth.
Quite possibly. Because a lifetime mortgage doesn't require monthly payments, lenders are generally less focused on credit history than for a standard mortgage. Past credit problems, or even existing arrears that the released money would clear, don't automatically rule you out. Each case is assessed individually, and I'll know which lenders are most accommodating.
With over 20 years in financial services and a specialism in later life lending, I offer genuinely independent, whole-of-market advice with no pressure and no sales targets. I take the time to understand your situation, involve your family, and explain everything in plain English. As an Equity Release Council member, every recommendation I make carries the full consumer protections. Above all, I'll always tell you honestly if equity release isn't right for you.

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This website is operated by Equity Release Hub Limited for lead generation purposes only. It does not constitute financial advice. Any enquiry submitted will be responded to by Roshan Percy, a qualified later life lending adviser. Roshan Percy personal FCA reference: RPW01085.

Equity release is a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration. Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. The answers on this page are general guidance only and do not constitute advice.

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