Equity release is a way for homeowners, typically aged 55 or over, to access some of the money tied up in their property’s value without having to sell up and move out, and usually without making regular monthly repayments.
The most common form of equity release is a lifetime mortgage, where a loan is secured against the property and, along with any accrued interest, is normally repaid when the homeowner dies or moves into long-term care. Because equity release reduces the value of your estate and can affect entitlement to means-tested benefits, it’s a decision that needs careful, regulated financial advice — it isn’t right for everyone, and the FCA requires advice to be given before most equity release plans can be taken out.