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A regulated way to access money from your home without selling it — with real risks alongside the benefits. Speak to a qualified adviser before you decide.
Equity release lets homeowners aged 55 and over access some of the value tied up in their home, either as a lump sum, in smaller regular amounts, or a mix of both — without having to sell up and move out.
The most common product is a lifetime mortgage, a loan secured against your home where you don't have to make monthly repayments (though you can choose to). Interest is added to the loan and the whole amount (capital plus interest) is normally repaid when you die or move into permanent long-term care. The other type, a home reversion plan, involves selling part or all of your home to a provider in exchange for a lump sum or income, while retaining the right to live there rent-free. Lifetime mortgages now make up the large majority of new equity release business in the UK.
Equity release can help pay for home improvements, support retirement income, or provide a gift to family but it's a long-term, largely irreversible decision. It will reduce the value of your estate and the inheritance you can leave, and interest on unpaid amounts compounds over time, meaning what you owe can grow substantially faster than you might expect. It isn't right for everyone, and a qualified adviser is required to consider whether other options, such as downsizing, a retirement interest-only mortgage, releasing savings, or support from family — would suit you better before recommending equity release.
Types of equity release schemes
Lifetime Mortgages A lifetime mortgage is the most common form of equity release. You borrow a percentage of your property's value, secured against your home, at a rate that's fixed for that release or capped for the life of the loan if variable. You keep full ownership. No monthly repayments are required, though voluntary or scheduled payments are available on many plans to reduce how fast the loan grows. The balance is normally repaid when you die or move into long-term care.
Home Reversion Plans With a home reversion plan, you sell some or all of your home to a provider at below market value in return for a cash lump sum or income, while retaining a lifelong right to live there rent-free. Because you no longer own that share, you won't benefit from any rise in its value. Home reversion is now a small part of the UK market, but it's the other FCA-regulated route and worth knowing about for comparison.
"How much could I release?"
The amount you can release depends on your age, your property's value, and your health — generally, the older you are, the larger the percentage of your home's value you can access. As a guide, lifetime mortgage interest rates in 2026 have typically ranged from around 6.3% to 9.5% MER (fixed for life), depending on the plan and how much you borrow relative to your home's value. These are market guide rates only, change frequently, and aren't a quote your adviser will confirm the actual rate and amount available to you.
Tell us a bit about yourself and what you're looking for. It takes a few minutes, won't affect your credit score, and there's no obligation to proceed.
We'll match you with lenders who consider your circumstances, even with a less-than-perfect credit history, so you know where you stand before applying.
Once you're matched with the right lender, we'll guide you through the application and stay with you right through to completion.
The Equity Release Council and your protections
Hello Mortgage only recommends plans that meet Equity Release Council (ERC) standards. These include:
The Pro's and Cons of Equity Release in 2026
Equity release can be a useful way to fund your later life, but it isn't right for everyone. Here's a balanced look at the main advantages and drawbacks.
The advantages
Stay in the home you love. You can release money without having to sell up and move, and you keep the right to live there for life or until you move into long-term care.
Tax-free cash. The money you release is tax-free, and you can usually choose to take it as a lump sum, in smaller amounts over time, or a mix of both.
No monthly repayments required. With a lifetime mortgage you don't have to make repayments, which can help if your retirement income is limited. Many plans also let you make voluntary payments to reduce how quickly the loan grows.
Only pay interest on what you use. With a drawdown plan, you release an initial amount and keep a reserve to draw on later, so interest is only charged on the money you've actually taken.
You keep ownership. With a lifetime mortgage, your home stays yours, so you continue to benefit from any rise in its value.
Built-in protections. Plans meeting Equity Release Council standards include a no negative equity guarantee, fixed or capped interest rates, and the right to move home, subject to the lender's criteria.
The things to consider
It reduces your estate. Equity release will reduce the value of what you can leave to your loved ones, and in some cases there may be little or nothing left.
Interest builds up quickly. Because interest is added to the loan and then charged on itself, the amount you owe can grow faster than you might expect. As a guide, at a rate of around 6.5%, the amount owed would roughly double in about 11 years if no payments are made.
It can affect your benefits. Releasing money may reduce your entitlement to means-tested benefits such as Pension Credit or Council Tax Reduction.
It's hard to reverse. Equity release is a long-term commitment. Repaying the full balance early may mean paying an early repayment charge, which can be substantial.
There are costs involved. You may need to pay for advice, a property valuation and legal fees. Your adviser will explain these clearly before you proceed.
It may limit your future options. Having equity release in place could affect your ability to borrow later, and moving home depends on the new property meeting the lender's criteria.
Home reversion means giving up part of your home's value. If you choose a home reversion plan, you sell your share at below market value and won't benefit from any future rise in its value.
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Most lifetime mortgages are available from age 55, though some providers set a higher minimum. For joint applications, the age of the younger applicant is usually what's assessed.
With a lifetime mortgage, yes — you retain full ownership. With a home reversion plan, you sell some or all of the property but keep a lifelong right to live in it.
If your plan meets Equity Release Council standards, a no negative equity guarantee means neither you nor your estate will ever owe more than the home sells for.
Yes, but equity release reduces what's left. Some plans offer an inheritance protection feature that ring-fences a percentage of the property's value, usually in exchange for a lower amount released.
