Equity release: frequently asked questions

Yes, in the ways that protect your home. It's regulated by the FCA, advice is compulsory, and Equity Release Council plans let you stay for life, move, repay without charges and never owe more than the home is worth. The real risk is the debt growing and leaving less behind. Read the full answer

Yes, you can gain equity release if you still have time left on your residential mortgage, but you will need to raise enough money to pay off your existing mortgage with your current provider. Read the full answer

To be eligible for equity release, you need to be a UK homeowner aged over 55. All equity release applications are subject to the lending criteria of different product providers. I am always happy to answer any questions you may have. Read the full answer

Yes, you need to remain in your home for as long as you are alive or until you move into long-term residential care. You will need to abide by the terms and conditions of your plan. Read the full answer

No, your home does. When the last borrower passes away or moves into long-term care, the home is sold and the lender is repaid from the sale, typically within 12 months. The no negative equity guarantee means your estate never owes more than the home sells for. Read the full answer

No. Money from equity release is a loan secured on your home, not income, so there is no income tax, no capital gains tax and no National Insurance on it. Two things still need checking: means-tested benefits, and any interest the money earns once it is sitting in your savings. Read the full answer

No. Unlike residential mortgages, equity release schemes are not dependent upon repayment ability, so having a good credit history is not essential. I can research the whole of the equity release market to find the best product for you. Read the full answer

Yes, by releasing it from your main home and buying the second one with the cash. What you can't do at the moment is take equity release on the second home itself, or on a buy-to-let: none of the lenders I compare offers that today. Read the full answer

Yes, with lifetime mortgage plans you have the freedom to move to another home, subject to certain criteria being met. Read the full answer

Yes, there are many alternatives to equity release, such as remortgaging, RIO mortgages, downsizing, state benefits, and more. I can talk you through the different options. Read the full answer

How you choose to spend the money that you release through equity release is entirely up to you. You can spend it on whatever you wish, from going on holiday to helping your family. Read the full answer

Not in practice. FCA rules require advice on lifetime mortgages, and most lenders will not deal with the public directly, so an adviser is how a plan actually gets arranged. Every Equity Release Council plan also involves your own solicitor. The real choice is which adviser, not whether. Read the full answer

The plan has to be repaid before the house is yours outright, usually by selling it or by paying off the loan from other money. Tell the lender, get probate, and expect around 12 months to settle. Interest runs until then, but you never owe more than the house sells for. Read the full answer