Am I eligible for equity release?

Providers set their own rules, but you will generally need to be a UK homeowner aged 55 or over, and the property must be your main home. The amount you can release depends on factors such as your age and the value of your home.

Can I get equity release on a static or mobile home?

Generally not. Most providers do not accept static or mobile homes as security for a mortgage or an equity release loan.

Do I risk owing more than my home is worth?

Plans from members of the Equity Release Council include a no negative equity guarantee, which means the amount owed will not be more than the value of your home when it is sold. Check that any plan you consider includes this protection.

Would my partner have to move out when I die?

If you took out the plan jointly with your partner, they can usually stay in the home after you die. If the plan is in your name only, they may have to move, so this is an important point to discuss with an adviser.

Some equity release plans can be moved to a new home, as long as the new property meets the provider's conditions on things like location, condition and value.

Money and renewals

Equity release

A plain guide to equity release for homeowners aged 55 and over: how it works, why people use it, the main safeguards and where to get free guidance.

Equity release lets homeowners aged 55 and over access some of the money tied up in their home without having to sell it and move. It is a big decision with long-term effects, so it is worth understanding how it works before you speak to anyone about it.

How equity release works

There are two main types of equity release.

Lifetime mortgage

You borrow against the value of your home, which stays yours. You can usually take the money as a lump sum or in several smaller amounts. Interest is added to the loan and is normally repaid, along with the amount borrowed, from the sale of the home when you die or move into long-term care. Some plans let you make repayments if you want to.

Home reversion

You sell all or part of your home to a provider in return for a lump sum or regular payments, and keep the right to live there. When the home is eventually sold, the provider receives its share.

Why people use equity release

People use the money for many reasons. Some of the most common are:

Looking after parents: adapting a home, adding an extension, or paying for care and support.
Helping children and grandchildren: a deposit for a first home, a wedding or education fees.
Improving your home: a new kitchen or bathroom, a garden makeover or an extension.
Bringing plans forward: travel, hobbies or a long-held ambition earlier in retirement.

Things to think about

Equity release reduces the value of your estate and what you can leave to your family.
Interest can build up quickly on a lifetime mortgage because it is charged on the interest already added.
It can affect your entitlement to means-tested benefits.
There may be costs such as advice, valuation and legal fees, and early repayment charges if you pay off the plan early.
You will normally need to speak to a qualified equity release adviser before taking out a plan, and it is wise to involve your family.

Where to get help

Kompare doesn't arrange equity release. MoneyHelper is the free government-backed service, with impartial guidance on equity release and other ways to raise money in later life. If you do speak to an adviser, you can check they are authorised on the FCA register.

For the insurance we can help with, including home insurance and life insurance, see how we work.