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For many retirees in the UK, the biggest asset they own isn’t their pension - it’s their home. Yet while property wealth can look impressive on paper, it doesn’t always provide spendable cash. That’s why more homeowners are exploring equity release to boost their retirement income without having to sell or move.
Once viewed with scepticism, today’s equity release products are regulated, flexible, and secure. According to industry data, over £2.3 billion was released by homeowners in 2024 alone—proof that attitudes have changed.
So, what exactly is equity release, how does it work, and is it right for you?
Equity release allows homeowners aged 55 and over to access the money tied up in their property as a lump sum or drawdown facility, while continuing to live there.
All modern plans are regulated by the Financial Conduct Authority (FCA) and backed by the Equity Release Council, which enforces key safeguards such as the no-negative-equity guarantee, fixed interest rates, and the right to move home.
Equity release can help a range of people in later life, especially those who are asset-rich but cash-poor. Common reasons include:
It’s a useful option for some retirees, but it isn’t suitable for everyone. A professional adviser can help you understand how it fits within your wider financial plan.
There are two main forms of regulated equity release in the UK: lifetime mortgages and home reversion plans.
A lifetime mortgage lets you borrow against your home’s value while retaining full ownership.
This flexibility means lifetime mortgages can work well for those wanting to manage borrowing costs and preserve inheritance potential.
A home reversion plan involves selling part or all of your home to a provider in exchange for cash or regular income. You continue to live there—usually rent-free.
Because the provider takes on risk, you’ll receive less than market value for your share. For example:
This option can reduce the value of your estate significantly, with your beneficiaries losing out particularly in a rising property market.
A Retirement Interest-Only (RIO) mortgage lets you release up to about 40 % of your home’s value and pay only the interest each month.
Unlike equity release, RIOs require affordability checks and ongoing payments, but they can help homeowners maintain ownership while easing cash flow in retirement.
Before releasing equity, consider other options:
Exploring these first ensures you only use equity release if it’s the most suitable and sustainable solution.
When considering equity release UK plans, remember to:
Equity release can be a practical way to access property wealth and enhance your retirement lifestyle without selling your home. It provides flexibility, improves cash flow, and can form part of a broader retirement income strategy.
But it’s a long-term commitment that affects your estate and inheritance. Independent financial advice is vital to ensure the product suits your goals and family circumstances.
If you’re exploring equity release in the UK, speak to a qualified adviser.
Want to learn more? Contact our team to discuss your options or listen to Episode 42 of the Retire Well with Wealth of Advice podcast for the full discussion.
If you want a better view of what your future could be, we'll have a chat and work out if we make a good fit for you and your financial picture.
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