Equity release is a way of releasing cash from your home without having to move – but it does come with certain risks.
Equity release is a big decision. You should consider it very carefully and get specialist financial and legal advice before making any decisions.
There are two main types of equity release:
Lifetime mortgage. This is the most common type of equity release. You borrow money secured against your home. The mortgage is usually repaid from the sale of your home when you die or move permanently into residential care.
Home reversion plan. You raise money by selling all or part of your home while continuing to live in it until you die or move into permanent residential care.
There are specific conditions you must meet before being eligible to take out an equity release:
If you have a mortgage or secured loan on your property, you may still qualify for equity release, but it will depend on the value of your home and the amount outstanding on the existing mortgage or loan. You’ll have to pay off any outstanding mortgages or loans secured against your home at the same time as taking equity release.
Equity release may not be suitable if you have dependants living with you. Any dependants should take separate legal advice. If they wish to remain living with you in the property, they may need to sign a waiver confirming that they understand they don’t have the right to reside there if you die or move into permanent residential care.
Always get advice from a specialist equity release adviser before taking out equity release. Search for a financial adviser through one of the links below:
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Page last reviewed in October 2025
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