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What equity release actually is

Equity release is a way of taking money out of a home you own without moving and without repaying anything while you live there. This explains it plainly, and then sends you to the pages that show what it costs.

One paragraph, then the four things that are true about it, then everywhere else on this site. Nothing is sold to you on this page.

Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.

How this page is kept
Written by
Equity Release Facts editorial
Last checked
6 September 2026
Next review
6 March 2027

In one paragraph

Equity release is a way of taking money out of a home you own, without moving, and without repaying anything while you live there. What is taken out, plus the interest, is repaid when the last of you dies or moves permanently into long-term care, almost always from selling the property.

There are two kinds

There are two kinds. A lifetime mortgage is a loan secured against the house and is what most people mean; a home reversion plan means selling part of it. Roughly speaking, one grows a debt and the other gives up a share.

You keep living there

For life, or until a permanent move into care. On a lifetime mortgage your name stays on the deeds.

Nothing to pay each month

Unless you want to. Paying the interest is allowed and it stops the debt growing, which is the biggest lever you have.

It is assessed on age and property

How much you can borrow comes from your age and the property, not from your income or your employment. There is no affordability test, because there is nothing to pay each month unless you choose to. A credit search is still carried out.

Advice is compulsory

You cannot take one out without it, and a solicitor has to advise you separately. Those are requirements, not sales steps.

What this page is not doing

Encouraging you. We are not advisers, we are not authorised to recommend anything, and pushing somebody towards taking out equity release would be advice.

What we publish instead is what it costs, what it does to your estate, what it can do to a benefit, and what else you could do instead. All of it with the source and the date on it. Read the risks page before you read anything else here.

The risks, with numbers → Six things that are not equity release →
Worth knowing

Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.

Worth knowing

Equity release requires repaying any existing mortgage. Money released, plus accrued interest, would need to be repaid upon death or moving into long-term care.

Where to go next

What has changed on this page
  1. First publication. Written last on purpose, after every page it links to already carried its own sourced arithmetic.
How this page is kept
Written by
Equity Release Facts editorial
Last checked
6 September 2026
Next review
6 March 2027
Checked 10 September 2026
[6.20%]lowest lump sum rate, fixed for life[lender rate sheets] [6.44%]lowest drawdown rate[lender rate sheets] 43.5%most you could release at 70LTV schedule, July 2026 54%most you could release at 80 or overLTV schedule, July 2026 55Legal & General's youngest applicantL&G lending criteria, 6 September 2026 £0to pay each month unless you choose tosubject to lender terms [6 to 8 weeks]typical time from application to money £70,000Legal & General's minimum for a houseL&G lending criteria, 6 September 2026

Questions people ask about this

Short answers to the things that come up most. None of it is advice, and every figure on this page carries its source.

What is equity release, in one sentence?

It is a way of taking money out of a home you own, without moving, and without repaying anything while you live there. What is taken out, plus the interest, is repaid when the last of you dies or moves permanently into long-term care, almost always from selling the property.

What are the two kinds?

A lifetime mortgage is a loan secured against the house, and it is what most people mean by equity release. A home reversion plan means selling part of the property instead. Roughly speaking, one grows a debt and the other gives up a share.

Is there anything to pay each month?

Not unless you want to. Paying the interest is allowed and it stops the debt growing, which is the biggest lever you have over what this ends up costing.

Will my income or credit record be checked?

Your income is not, and there is no affordability test, because with a lifetime mortgage there is nothing to pay each month unless you choose to make payments. Your credit record is a different matter. One lender publishes that credit and voters roll searches will be carried out on all applicants, and that up to four CCJs per application will be accepted. No affordability test does not mean no credit check.

Do I have to take advice?

Yes, and you cannot take equity release out without it. A solicitor also has to advise you separately and independently. Both are requirements rather than sales steps.

Worth knowing

Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.

Talk it through with an adviser

Takes about two minutesFree, no obligation, and nothing committed

One qualified equity release adviser. They will go through your figures and tell you if there is a better answer. It costs nothing and commits you to nothing.

Advice is required to proceed with equity release and there may be other options which better suit your circumstances. Only if your case completes would an advice fee be payable, and the adviser will tell you what theirs is before you commit to anything. Other lender and solicitor fees may apply.

We pass your details to one adviser and nobody else.