What is equity release?
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In short: Equity release lets homeowners aged 55+ borrow against their home without selling it. The most common type is a lifetime mortgage where interest rolls up until you die or move into long-term care — regulated advice is required before you sign.
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With a lifetime mortgage you keep ownership. Interest compounds on the loan — at 6% a £50,000 advance can become roughly £100,000 owed in 12 years. Equity Release Council plans include a no-negative-equity guarantee.
Alternatives include downsizing, a retirement interest-only (RIO) mortgage if you can afford monthly interest, or local authority grants for adaptations. Equity release can affect means-tested benefits such as Pension Credit.
Read our full equity release guide before speaking to an adviser. This is information only — not regulated financial advice.
Primary source: moneyhelper.org.uk/en/homes/buying-a-home/what-is-equity-release
Part of our Mortgages & first homes
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