Equity Release

Equity release allows homeowners aged 55 and over to access the value tied up in their property, without having to sell or move. Whether you want to supplement your retirement income, help family members, or clear an existing mortgage, equity release can provide a tax-free lump sum or regular income from the wealth already in your home.

Equity release lets homeowners aged 55 and over unlock tax-free cash from their home without moving. That’s Family Finance is an introducer, not an equity-release adviser: we connect you to a carefully selected, FCA-regulated equity-release adviser.
Written by That’s Family Finance · Reviewed August 2026

Key facts about equity release in the UK

For many homeowners, the majority of their wealth is tied up in their property. Equity release is a way to access that wealth in later life, without the disruption of selling and moving. It is a significant financial decision, and one that requires careful, qualified advice. We make sure you get it from someone regulated to give it.

What is equity release and how does it work?

Equity release is a way for homeowners aged 55 and over to access the value in their property while continuing to live there. The most common form is a lifetime mortgage, a loan secured against your home that does not need to be repaid until you die or move into long-term care.

Interest is charged on the loan and typically rolls up over time, meaning the amount owed grows. The loan and accumulated interest are repaid from the sale of the property when the plan ends. Modern lifetime mortgages come with a no-negative-equity guarantee, meaning you will never owe more than your home is worth.

Quick facts
  • Usually available from age 55
  • No monthly repayments required
  • Tax-free cash from your property
  • You remain the homeowner
  • No negative equity guarantee

The two main types of equity release

Lifetime Mortgage

The most common type

A loan secured against your home. No monthly repayments, interest rolls up and is repaid when the property is sold. You retain full ownership.

Home Reversion Plan

Less common

You sell a share of your property to a provider in exchange for a lump sum or income. You retain the right to live there rent-free for life.

Drawdown Lifetime Mortgage

Flexible access

A lifetime mortgage with a reserve facility. You take an initial amount and draw further funds as needed. Interest only accrues on money drawn.

Interest-Paying Lifetime Mortgage

Manage the balance

You choose to pay some or all of the monthly interest, reducing or eliminating the roll-up effect and preserving more of your estate.

Who might consider equity release?

Your situation How equity release can help
Homeowners wanting to supplement retirement income Access a tax-free lump sum or regular drawdown to top up pension income
People wanting to help family financially Gift a deposit to children or grandchildren while you are still alive to see the benefit
Those with an interest-only mortgage maturing Use equity release to repay the outstanding mortgage without having to sell
Homeowners wanting to fund home improvements Adapt your home for later life, accessibility, comfort, or energy efficiency
Anyone wanting to clear debts in retirement Use property wealth to clear credit cards, loans, or other liabilities
Take Margaret, 68, who owns her home outright worth £380,000 but has a modest pension and limited savings. She wants to help her daughter with a house deposit and fund some home improvements. A drawdown lifetime mortgage allows her to release £60,000 initially, with a further reserve available. She remains in her home, retains ownership, and the loan is repaid from the estate when the property is eventually sold.

Important considerations before taking equity release

It reduces your estateThe loan and rolled-up interest will reduce the value of what you leave behind. Your adviser explains the long-term impact before you commit.
It may affect means-tested benefitsReleasing equity can affect entitlement to certain state benefits. Your adviser checks this before recommending anything.
Early repayment charges may applyIf you repay the plan early, charges may apply. Your adviser sets out every charge before you commit.
Independent legal advice is requiredYou will need to take independent legal advice as part of the process. We can help coordinate this.
It is a lifetime commitmentEquity release is designed to run for the rest of your life. We would rather tell you it is wrong for you than pass you on regardless.
A grandparent and grandchild baking together

How getting equity release advice works

Equity release is one of the most significant financial decisions you will make. We take the time to understand your full situation before anyone puts a product in front of you.

1

Initial conversation

We start with a no-obligation conversation to understand your situation, your goals, and whether equity release is likely to be appropriate for you.

2

Full fact-find

We gather detailed information about your property, your finances, your family, and your plans, so your adviser starts with the complete picture.

3

Research and recommendation

Your adviser researches the market and gives you a personalised recommendation. We stay alongside you and explain anything that is not clear.

4

Application and completion

If you choose to proceed, your adviser handles the application. We keep in touch with you until the plan completes.

Why start with That’s Family Finance?

Advice from the right firmYour equity release advice comes from a firm regulated for exactly that.
No lender tiesWe are not owned by, or tied to, any equity release lender. Who we introduce you to depends on your situation, nothing else.
Council-approved plansYour adviser searches Equity Release Council members, so your plan carries the no negative equity guarantee. You can never owe more than your home sells for.

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

Check broadband at an address (Ofcom)

Want all your bills in one?

We can introduce you to a specialist who can combine your mobile, broadband and utilities into one bill. There's no fee for the introduction.

We don't provide these services ourselves. Switching household bills is not a regulated financial service, so FCA protections and the Financial Ombudsman do not apply. We'll only pass your details to the specialist if you ask us to. See our privacy notice.

Your equity release questions answered

What is equity release?
Equity release is a way for homeowners aged 55 and over to access the value tied up in their property without having to sell or move. The most common form is a lifetime mortgage, a loan secured against your home that does not need to be repaid until you die or move into long-term care.
Will I still own my home?
With a lifetime mortgage, yes, you retain full ownership of your property. With a home reversion plan, you sell a share of the property to the provider, but retain the right to live there rent-free for life. Your adviser will explain the difference clearly.
What is the no-negative-equity guarantee?
All Equity Release Council-approved products include a no-negative-equity guarantee. This means you will never owe more than the value of your home when it is sold, regardless of how much interest has rolled up. Your estate will never be left with a debt to repay.
How much can I release?
The amount you can release depends on your age, the value of your property, and the lender's criteria. Generally, the older you are, the more you can release as a percentage of your property's value. Your adviser will give you a clear indication of what is available based on your circumstances.
Will equity release affect my benefits?
Releasing equity can affect entitlement to means-tested state benefits such as Pension Credit or Council Tax Reduction. Your adviser factors this in, and we make sure you understand the full picture before proceeding.
Can I still move home if I have equity release?
In most cases, yes. Equity Release Council-approved lifetime mortgages include a portability feature, allowing you to transfer the plan to a new property if it meets the lender's criteria. Your adviser will explain how this works.
Is equity release right for me?
Equity release is not right for everyone. It reduces the value of your estate, may affect benefits, and is a long-term commitment. There may be alternatives, such as downsizing, using savings, or other borrowing, that better suit your circumstances. Your adviser considers the full range of options before recommending anything.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.

Explore our other services

Life InsurancePays your family a lump sum if you die, whether you rent or own. Wills & LPAMake sure your wishes are protected and someone you trust can act for you if needed. Free Trust GuidanceMake sure your life insurance reaches your family quickly and free of inheritance tax. Mortgage ProtectionCover your mortgage repayments if you die or are diagnosed with a serious illness.
An older couple reading together at home

Equity release guides

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Equity release near you

Local, plain-English equity release guides for 197 retirement and higher-value towns, each with its own figures and later-life context.

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Protecting the mortgage is the part we advise on ourselves. Read how mortgage protection insurance works, including which type of cover suits which situation.

Guides on this

Money guidesPensions, mortgages, debt and cover, all sourced.State Pension explainedThe income the rest of retirement sits on.