05th Mar 2026
Equity release
Equity release lets homeowners aged 55+ unlock money tied up in their property without having to move. It’s often promoted as a way to boost retirement income, but it’s not without risks. MoneySavingExpert founder Martin Lewis has spoken many times about equity release, stressing both its benefits and dangers.
Key Points
- According to Martin Lewis, equity release can free up cash from your home, but compound interest means the debt can grow quickly.
- Martin Lewis advises: only borrow what you need, as late as possible, and only from Equity Release Council (ERC) members.
- Typical lifetime mortgages charge interest of 6–7%, meaning a £50,000 loan could more than double after 15 years.
- Equity release may affect means-tested benefits.
- The golden rule of Martin Lewis: always seek advice from an independent, ERC-registered adviser.
What Martin Lewis Says About Equity Release
Benefits
✔ It can provide a much-needed lump sum or income boost for people with limited pensions.
✔ Plans approved by the Equity Release Council (ERC) come with a no negative equity guarantee, so you’ll never owe more than your home is worth.
Risks
❌ Compound interest can make the debt grow rapidly, reducing the value of your estate.
❌ Taking money out could affect your entitlement to means-tested benefits such as Pension Credit or Council Tax Support.
Martin Lewis on Inheritance and Quality of Life
One of the key themes in Martin Lewis’ guidance is the trade off between inheritance and retirement lifestyle.
Because most lifetime mortgages are repaid when you die or move into long term care, equity release will usually reduce the amount left to loved ones. However, Martin Lewis makes clear this is a personal choice.
On MoneySavingExpert he explains that if you have no one to leave assets to, equity release can be “a decent, albeit expensive, route to raise cash.” For those who do have family, he acknowledges that it will likely mean less inheritance, but adds an important reminder: “It is your money, so prioritise your own standard of living.”
In other words, the decision is not about right or wrong, it’s about understanding the cost and deciding what matters most to you.
Martin Lewis on the Cost of Getting It Wrong
On MoneySavingExpert Martin Lewis warns that equity release “should be done in the right way” because if you get it wrong, it can prove “eye wateringly expensive.”
He frequently illustrates the power of compound interest, explaining that borrowing £20,000 at age 60 at 6% could double to £40,000 by age 72 and double again to £80,000 by age 84.
His message is consistent: Understand the long term impact before proceeding.
What Equity Release Costs
Side-by-Side Comparison
|
Timeframe
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Interest at 6%
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Debt Owed
|
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After 5 years
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£16,911
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£66,911
|
|
After 10 years
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£44,207
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£94,207
|
|
After 15 years
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£84,073
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£134,073
|
*Figures are approximate and for illustration only. They show how compound interest increases the total owed over time.*
👉 A £50,000 loan could more than double to £134,000 after 15 years.
Martin Lewis’ Top Equity Release Advice
1. Borrow only what you need – take out the minimum amount, as late as possible, to reduce interest costs.
2. Choose ERC members – ERC-approved plans offer a no negative equity guarantee.
3. Seek professional advice – always consult an independent adviser or broker who specialises in equity release.
4. Understand the impact on benefits – a lump sum could affect your eligibility for means-tested benefits.
Partner Spotlight: Age Partnership
If you’re considering equity release, it’s important to compare providers and get independent advice. One option is Age Partnership, a specialist adviser with over 20 years’ experience in later-life lending.
Why consider them?
✔ Independent whole-of-market advice – they compare products from leading lenders, not just their own.
✔ Strong customer reputation – Trustpilot 4.9★ (17,000+ reviews), with many reviewers praising clear explanations and supportive advisers.
✔ ERC membership – all plans come with the no negative equity guarantee.
❌ Equity release may not be right for everyone – as with any provider, Age Partnership’s plans carry the same risks around compound interest and impact on benefits.
❌ Advice fees – they charge advice fees if you go ahead with a plan, which is common in the market but still worth noting.
💡 Age Partnership can be a good first step for those who want an experienced broker to explain the options in plain English and help ensure they don’t take out more than they need.
Latest Market Update (Q2 2025)
According to the Equity Release Council, lifetime mortgage lending reached £1.1 billion in Q2 2025, showing steady demand despite higher interest rates. Average interest rates remain around 6.2%, which is significantly higher than in previous years, underlining Martin Lewis’ advice to take out equity release cautiously and only if necessary.
Conclusion
Martin Lewis’ message is clear: equity release can help some people, but it comes with serious long-term costs. If you do go ahead, borrow as little as possible, make sure the provider is ERC-registered, and take independent advice.
Age Partnership offers a way to access whole-of-market plans with expert guidance, but the decision should always be made very carefully — weighing up today’s financial needs against the future value of your estate.
While 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