Access funds tied up in your home
Equity release can help you unlock funds from your property
Make an informed decision
Understand potential benefits, risks and what to consider
Expert guidance
No-obligation advice is available from Royal London Equity Release Advisers
Equity release lets you unlock a portion of your home’s equity. There are two types of equity release for those over the age of 55:
Lifetime mortgages
Home reversion plans (minimum age may be higher than 55).
Lifetime mortgages make up 99% of the equity release market.
Equity is the share of your home that you own outright. You can work out how much equity you have by subtracting any outstanding mortgages and loans secured against the property from its value.
For example, if your home is worth £300,000 and the outstanding amount you owe is £100,000, then your equity is £200,000.
Releasing equity is a big financial commitment. You need to think carefully about its implications and ensure you get impartial financial advice before you go ahead.
If you take out a lifetime mortgage, you borrow against a portion of your home’s value. There are limits on the percentage you can borrow, which typically depend on the age of the youngest homeowner.
The full amount of a lifetime mortgage, plus the interest accrued, doesn’t have to be repaid until the last homeowner dies or enters long-term care.
It’s up to you whether you make ongoing repayments. If you decide not to make any, the interest charged will compound over time. In other words, you pay interest on the interest.
If you do make repayments, you might make them to:
Pay the interest each month
Reduce the amount owed.
You can also choose to make ad hoc payments when money becomes available to you.
Always explore the pros and cons of making repayments with the help of an equity release advisor.
A lifetime mortgage is a loan secured against your home. You can release equity as a lump sum or a drawdown.
You receive a one-off, tax-free lump sum from your home. If you decide not to make repayments, the interest will accrue over time.
The interest, along with the initial loan amount, is repaid when the last homeowner dies or enters long-term care. This usually happens through the sale of the property.
You agree the total amount you can borrow with the lifetime mortgage lender. You can then release an initial amount and keep the rest in an interest-free reserve, which you can access in instalments.
The interest rate on your reserve is fixed at the time you access it, so it could be higher or lower than your initial rate.
The balance, plus any interest accrued, is usually repaid through the sale of the property when the last homeowner dies or goes into long-term care.
Other flexible features could be available, whether you release equity as a lump sum or as a drawdown. An equity release advisor will be able to tell you more about them.
Choose between a cash lump sum or release in smaller instalments, subject to lender criteria.
You can set aside some of the value of your property as an inheritance for your family.
Making repayments in your lifetime is optional.
You can choose whether to pay back the interest to help reduce the overall cost of borrowing or let it build up.
The full amount borrowed, plus interest, is only repaid when the last homeowner dies or enters long-term care. This is usually achieved through the sale of the property.
You may be able to move home and transfer your lifetime mortgage, subject to your lender’s criteria.
Some equity release lenders guarantee that the total amount you owe will never be more than the value of your property.
Funds released on your property will be tax-free.
You’ll immediately have less equity in your property.
The value of your estate will be reduced.
Your entitlement to means-tested benefits may be affected.
A lifetime mortgage is a loan secured against your home. If you decide to pay back the loan early, there may be early repayment charges to pay.
If property prices fall, what you owe will represent a greater percentage of your home’s value.
Interest charged is compound, so over time you are effectively paying interest on the interest. This can make it an expensive way to borrow.
It can be expensive to set up, with potential costs including advice fees, application fees and solicitor fees.
You may be eligible for a lifetime mortgage if:
You’re a UK homeowner aged 55 or older. If you’re making a joint enquiry, you both need to be aged 55 or older
Your home is worth at least £70,000
You want to borrow more than £10,000
The home you want to release equity from is your permanent main residence
You have no existing mortgage or are able to pay off the mortgage with the funds released.
Use the equity release calculator, provided by Royal London Equity Release Advisers, to find out what you could potentially release from your home with a lifetime mortgage.
Compare the Market introduces customers to Royal London Equity Release Advisers who can provide holistic equity release advice.
A home reversion plan is another type of equity release. But it won’t be suitable for everyone.
You continue to live in your home with a home reversion plan, but you sell part or all of it to the reversion company in exchange for a tax-free lump sum.
You won’t get the full market value of your house. And the price you do get will generally depend on your age. When your home is later sold, the reversion company will take its share of the proceeds.
For example, let’s say your home is worth £300,000. You sell 100% to a home reversion provider for £225,000. Assuming your home doesn’t increase in value, the provider will receive the full market value of your home once it’s sold.
Figures are a representative example and not a guarantee of what a provider will offer.
Our equity release advice provider Royal London Equity Release Advisers doesn’t advise on home reversion plans.
As you’re selling some or all of your home instead of choosing a loan, there are no interest charges to consider.
You could continue to live in your home for life or until you go into long-term care.
You might be able to retain some ownership if the provider offers to buy a percentage of your home.
There won’t be a risk of negative equity as you’re selling some or all of your home, not borrowing against it.
Any funds received from selling equity in your home with a home reversion plan are tax-free.
You’ll be agreeing to sell some or all of your home at a rate below its market value.
Your beneficiaries will receive less, or nothing at all, when your home is sold because your estate value will be reduced.
You no longer own the full amount of your home, which might limit the control you have over making changes to your home.
It could be difficult and costly if you later decide that you want to buy back your home.
You won’t benefit from any future house price increases for the percentage that you sold.
Receiving a lump sum may affect your entitlement to means-tested benefits.
You may be eligible if:
You’re a UK homeowner. The minimum age can vary: the Equity Release Council suggests that it will usually be available from age 60
Your home is worth at least £70,000
The home you want to release equity from is your permanent main residence
You have no existing mortgage or are able to pay off the mortgage with the funds released.
If you’d like advice on a home reversion plan, you can find a qualified advisor at unbiased.co.uk.
The cost of a lifetime mortgage can depend on several factors, including the interest rate, and advice, lender and solicitor fees.
Rates on a lifetime mortgage vary, but are generally between 6.5% and 9.5%. The average rate secured by customers of Royal London Equity Release Advisers in the first three months of 2026 was 7.12%.
As an example, if you had a £90,000 release at an interest rate of 7%, the amount owed would roughly double after 10 years if you chose to make no payments.
The cost for a solicitor can range from around £650 to more than £1,000. Costs are based on the solicitor you choose and the overall complexity of your case.
Some advisers charge a fee for their advice. With Royal London Equity Release Advisers, that advice fee is £1,890.
While monthly payments are optional, they could reduce the total cost. An equity release advisor will explain how making repayments can work and help you make informed decisions.
They’ll be able to create a personalised illustration for you, before you make the decision to go ahead with a lifetime mortgage. This will show exactly how much you might owe in the future, both with and without making repayments.
There might be application fees and advice fees to pay when looking for a home reversion plan.
Some providers may also charge a rental fee for you to remain in the property.
Whether equity release is the best move for you depends on your situation. While there are short-term benefits, the long-term consequences can make it less attractive.
It’s important you consider your current age, income and standard of living, and how equity release will affect your future plans.
The younger you are, the more it might cost in the long term, particularly with a lifetime mortgage.
The amount is dependent on your individual circumstances, so it’s important to get advice from an equity release expert.
In general, the amount you can release is based on the age of the youngest homeowner and the value of your home.
You may feel you’re very likely to remain in your current home and have no family who’ll inherit from your estate when you die.
In this case, equity release could offer you money to be able to live comfortably or fulfil a lifelong dream that you perhaps wouldn’t otherwise have been able to.
There may be more considerations if you have loved ones you’d like to leave an inheritance to.
While you’ll still be able to live in your current home without making further payments, releasing equity in your home will leave less for your family once you’re gone.
Releasing equity from your home may not be the best move for you if:
You’re in a situation where you’re able to live comfortably in retirement
You have a family you may want or need to provide for when you’re gone
You may need to sell your home to fund moving into care.
Taking out an equity release product is a complicated decision, so you should take financial advice from an equity release advisor.
All advisors recommending equity release options must have a specialist qualification.
If you need to raise money and have a valuable home, simply selling up and downsizing may be a great option.
Alternatively, moving to a less expensive area could free up some extra money, without sacrificing the size of your home.
If you’re worried about your retirement income, you could consider remaining in or returning to work to provide you with a regular income.
If you want help with funding an extension or a renovation, you could look at a home improvement loan. These can be secured against your home but are also available without any collateral.
Remortgaging to get a better deal can help you save on interest payments or free up cash for home renovations, for example.
A second mortgage is a loan secured on your property that’s taken out in addition to your mortgage. It’s a way of raising money against your property, but interest rates will often be higher on a second mortgage.
If you have savings or investments available, consider whether you want to use them before thinking about equity release.
Under Financial Conduct Authority (FCA) rules, you must receive advice before you’re able to take out an equity release product, to ensure that it’s right for you.
Compare the Market can introduce customers to the experts at Royal London Equity Release Advisers, who offer whole-of-market advice on lifetime mortgages from lenders that are members of the Equity Release Council.
Getting a quote from Royal London Equity Release Advisers** could be a simple five-step process:
Use the free calculator to find out how much could be available to you
Consider completing the optional eligibility tool to find out if you qualify
Royal London Equity Release Advisers will send you a guide to equity release
Call, email or chat with the Information Team about any general questions you may have. The Information Team do not offer advice
Once you’re ready, the Information Team will book you a free initial advice appointment with a qualified equity release specialist.
**Royal London Equity Release Advisers is a trading style of Responsible Life Limited which is registered in England & Wales. Company No. 7162252. Registered Office: Princess Court, 23 Princess Street, Plymouth, PL1 2EX. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 610205. Responsible Life Limited is a wholly owned subsidiary of the Royal London Group who may benefit if you choose to take regulated mortgage advice. Being a wholly owned subsidiary of the Royal London Group does not alter Responsible Life Limited's regulatory responsibilities.
Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,890. A lifetime mortgage will reduce the value of your estate and could affect your entitlement to means-tested benefits. A Responsible Life advisor will talk you through this and the setting up costs before you make a decision to proceed.
Royal London Equity Release Advisers is not part of Compare the Market Limited. Compare the Market receives a % of the commission that Royal London Equity Release Advisers earns.
Find out more about mortgages in later life and how to become mortgage-free
You can use money from equity release for a variety of things, such as:
Improving your property
Clearing an existing mortgage
Adapting and improving your home so you can continue to live independently for as long as possible
Travelling – the funds from equity release could help you realise your dream of seeing the world.
For discretionary spending, consider whether using savings or other sources of money are more appropriate. An advisor can help you understand if equity release is suitable for your situation.
Here’s how to make equity release as safe as possible:
Get as much information and equity release advice as possible. It’s a requirement to speak with an advisor before you’re able to release equity.
Use a lender or provider that’s a member of the Equity Release Council. This will ensure your lender or provider adheres to its standards.
Compare the Market can introduce customers to the experts at Royal London Equity Release Advisers, who only offer advice on lifetime mortgages from lenders that are members of the Equity Release Council.
Yes, releasing equity in your home could affect your entitlement to certain means-tested benefits.
If you already claim benefits, you must tell the Department for Work and Pensions (DWP) or your council about the money you receive from equity release. This is because it could affect how much you’re entitled to.
Sajni is passionate about finding money products to help you make great financial decisions. She keeps track of the latest trends and evolving markets to find new ways to help you save money.
1Based on the % of respondents reporting Compare the Market is their preferred brand in the last 12 months vs. other leading PCWs. Source: Savanta BrandVue Financial Services, National Representative Survey of 12,257 respondents (June 2026)
What our expert says...
“Equity release can be a solution if you need money to supplement your retirement income and don’t want to downsize. However, make sure you get advice to fully understand the agreement you’re entering into and all the possible downsides as well as the benefits.”