Equity Release Faqs
Answering your most asked questions about equity release in 2026.
You will need to speak to a suitably qualified adviser to find out whether equity release is right for you.
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*Updated April 2026*
On this page:
Equity release vs Remortgaging
The amount of equity you can release
Equity release and Inheritance
Equity release and your property
Answers to all your equity release questions
We’ve pulled together answers to all the questions we are often asked by homeowners considering equity release. We hope you find what you’re looking for, but if not, drop us a line with your question and we’ll get back to you.
You will need to speak to a suitably qualified adviser to find out whether equity release is right for you. Read our 'Questions to ask your equity release adviser' article.
Equity release in brief
Equity is the difference between your home’s current value and any loan or mortgage you have secured on it. So, if your house is worth £450,000 and you have a mortgage of £200,000, the equity you have in your home is £250,000.
This is calculated as follows:
£ current value of property
minus
£ outstanding mortgage/secured loan
equals
£ equity in your home
Equity release eligibility
To be eligible for equity release you (or the youngest homeowner if you are joint applicants) need to be aged at least 55 for a lifetime mortgage or 60 for a home reversion plan.
The property you own usually needs to be:
- Your main residence
- In mainland England, Scotland or Wales
- Freehold, or leasehold with at least 80 years left on the lease
- Worth at least £70,000.
Equity release vs Remortgaging
You don’t have to remortgage to release equity. If you are 55 you could consider an equity release lifetime mortgage.
The amount of equity you can release
The maximum amount of equity you can release from your home could be as much as 60% of the property value. Your age and the value of your home will determine how much you can release; usually, the older you are, the more equity you can release.
The money you release
How you use the money you release is up to you: you could use it to pay off any remaining mortgage on your home or repay other debts and credit; you could set it up to provide yourself with extra income each month; you could improve your home or relax on a much-needed holiday; or you could help your family – perhaps to get on the housing ladder or towards education costs.
However, you should be aware that a lifetime mortgage may possibly cost more over the long term than your current mortgage or loans, as a result of compound interest continuously increasing the amount needing to be paid back. That's why it's important to talk to a professional adviser before using equity release to consolidate your existing debts.
Repaying equity release
Yes, you can. Many lenders have lifetime mortgages that allow you to make repayments without incurring a penalty, so you can reduce the amount by which your loan and interest increase. You can choose to:
- Pay off some or all the interest each month
- Make occasional repayments towards the actual loan (rather than just the interest)
- A combination of both
You can also stop making monthly interest payments at any time. If you do, the unpaid interest will be added to the amount you owe each month.
There is an annual limit on how much of the loan you can repay, typically around 10%.
Equity release and Inheritance
Like many people, your home may be the most valuable asset you have to pass on. As the equity release you have taken out is usually repaid by the sale of your property, the amount you can leave to your relatives, friends or chosen charities will be reduced.
With a home reversion plan, when your home is sold the proceeds will be split between your scheme provider and your beneficiaries, according to the percentages originally agreed.
With a lifetime mortgage, the overall effect on your estate will depend on how much you borrow, how long the mortgage runs for, and whether you have repaid any of the interest or capital.
Equity release and your property
Your home will need to meet your provider’s requirements, just as if you were applying for a traditional mortgage, and all lenders have slightly different criteria on the property types eligible for equity release. Some aspects that might cause a problem (or reduce your options) are:
- Buildings of non-standard construction, such as wood or concrete, timber frames, single-skin brickwork, or flat roofs
- Sheltered accommodation
- A park home
- A house in a high flood risk area
- A property with a record of subsidence
Equity release reservations
With a lifetime mortgage, the answer is an unqualified 'yes'. All lifetime mortgages allow you to keep full ownership of the property and benefit from 100% of any increase in your home’s value.
With a home reversion plan, you sell a percentage of your home to the plan provider, so you only own the share that you haven't sold (if any). However, you will have the right to continue living there rent free for the rest of your life.
Applying for equity release
The cost of arranging equity release will vary according to the scheme and provider you choose. Some of these charges can be added to your equity release loan, enabling you to pay less upfront if that's easier for you. Your adviser and lender should ensure that all these charges have been discussed with you and confirmed in writing before you commit to the plan.
Costs will usually include some or all of the following:
- An arrangement fee
- A valuation fee – although some lenders do offer free valuations
- Legal costs – you will need a solicitor
- Possible rental charges
- A fee charged by your independent adviser
- The provider's arrangement fees – most lenders don't charge these, but sometimes you can find a better interest rate with a lender that charges an arrangement fee
Next steps
We hope you found answers to your questions on equity release, but if not, don’t hesitate to drop us a line with your question and we’ll get back to you.
Or to get an idea of how much money you could unlock from your home, use our free and easy-to-use equity release calculator.
Our team have put together a number of articles which may help you decide whether equity release could be right for you:
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