Equity Release

Equity release can offer a valuable solution for homeowners aged 55 and over who wish to access the wealth tied up in their property without having to sell or move. One of the main benefits is the ability to unlock tax-free cash, either as a lump sum or through flexible drawdown, which can be used to supplement retirement income, fund home improvements, support family, or cover care costs. Lifetime mortgages—the most common form—typically require no monthly repayments, with interest rolling up and repaid when the property is sold. Many plans also offer features like inheritance protection, downsizing options, and fixed interest rates for life, giving clients peace of mind and long-term security.

However, equity release is not without its drawbacks. The compounding interest can significantly reduce the value of the estate over time, impacting what can be passed on to beneficiaries. It may also affect entitlement to means-tested benefits, and early repayment charges can be steep if circumstances change. Some plans limit future flexibility, such as moving home or borrowing more later. That’s why the Financial Conduct Authority (FCA) requires advisers to assess suitability carefully, explore alternatives like downsizing or using other assets, and ensure clients fully understand the long-term implications. Equity release can be a helpful tool—but only when it’s the right fit for the individual’s needs, goals, and circumstances.