Martin Lewis, the Money Saving Expert thinks equity release may be right for some homeowners over 55 who want to access extra cash, but only after all the alternative options have been ruled out as equity release may have long term implications.
Martin Lewis takes care to explain how to release equity from your home with either a lifetime mortgage or a home reversion plan, highlighting how important it is to consider the alternatives to equity release, the impact releasing equity can have on any inheritance you leave and the recent rises in interest rates. He also gives some helpful tips on equity release, which I cover later, but in summary:
The MSE has also published a comprehensive guide to switching lifetime mortgage to help existing equity release mortgage customers save money. I'm pleased to see that this guide has also been fact-checked by the Equity Release Council and updated in April 2023.
*Content reviewed and updated 23rd January 2024
Martin Lewis CBE is the founder of the Money Saving Expert and is now Chairman of the board. MSE is the UK's biggest consumer website with over 16 million users. In September 2012, the site joined the MoneySupermarket Group but firmly maintained its independence and ethical stance of putting the consumer first.
Through his stewardship of the Money Saving Expert, his consumer journalism, primetime show on ITV -The Martin Lewis Money Show , one of the most watched current affairs programmes in the UK - and frequent appearances on the news, Martin Lewis is well known for putting people before big business and this has won him a loyal following. In 2023 Martin Lewis became a regular host of ITV's Good Morning Britain.
Compare equity release providers on our reviews page
> Equity release explained
> Our lifetime mortgage guide
> The pros and cons of equity release
> How safe is equity release?
For many people Martin Lewis' view on equity release will matter because he's known for championing consumer rights and lobbying the powers that be to help people save money and make more informed financial choices. You can listen to The Martin Lewis Podcast, offering valuable money saving tips from - https://www.bbc.co.uk/sounds/brand/p02pc9xt.
Also, Martin Lewis isn't tied to any company and is committed to impartiality, but do remember his views are only his views. Before committing to any equity release scheme or provider, it's important to speak to a qualified and independent equity release adviser.
Martin Lewis, highlights the two ways homeowners over the age of 55 can release equity from your home - with a lifetime mortgage or home reversion plan. He also looks at equity release costs including application and arrangement fees, average interest rates and gives examples of repayment costs.
The Money Saving Expert's guide also focuses on the inevitable impact equity release has on inheritance, as a consequence of the loan usually being repaid from the sale of your property when you die or move into long term care.
Despite this, Martin Lewis believes equity release may be worth considering if you're struggling financially and have money tied up in your property, as long as you aren't precious about leaving the equity in your home as an inheritance. It is, after all, your hard-earned cash.
Martin Lewis does not explicitly recommend equity release, but does say that in certain circumstances, it may be a good way to access money tied up in your home to help you enjoy a more comfortable retirement. Whether it's right for you though will depend on your personal and financial circumstances.
On the flip side, he warns that it can be expensive and rightly reinforces the point that equity release is not a decision to be taken lightly. He recommends anyone thinking about equity release should consider all the options and alternatives carefully first.
For example, downsizing your home is one alternative to equity release that could give you the money you need. If this is a viable option for you, Martin Lewis suggests you should ideally downsize sooner rather than later as, in his experience, the older you are the less likely you are to move.
Also, if downsizing means a change in location that could leave you feeling isolated, or it means extortionate moving costs that could negate the cost benefit of moving, equity release may be more suitable.
When you click on the button to calculate results you will see how much cash you could release from your home. Age Partnership may phone you regarding their equity release service.
Thank you - we have emailed you a brochure
Ashley Shepherd Our founder and managing director has over 30 years’ experience in financial services including equity release.
As well as considering the alternatives and the impact equity release has on inheritance, Martin Lewis offers these six tips for anyone looking to release equity from their home:
Whilst it’s helpful to know what Martin Lewis thinks about equity release, it's also important that you understand the product too. Independent information on equity release is available from the Equity Release Council and the Money Advice Service. Our experts have also written useful guides explaining the benefits and risks of equity release in more detail.
Try the equity release calculator
Did you find this information helpful?