How Equity Release Can Help You Stay in the Home You Love After 55
Published November 2025.
For many homeowners aged 55 and over, staying in the home you love is a priority. It’s where memories live, where you feel comfortable, and where your community is. As life changes, you may want more flexibility without moving or downsizing. Equity Release offers a way to access the value in your property while continuing to live there.
What Is Equity Release?
Equity Release allows homeowners aged 55+ to unlock part of their property’s value as tax-free cash without selling or moving. The most common option is a lifetime mortgage, which is a loan secured against your home. You retain ownership, and the loan plus interest is usually repaid when the property is sold after you pass away or move into long-term care.
Modern plans often include features such as:
- Drawdown facilities – release funds gradually rather than all at once.
- Inheritance protection – safeguard a portion of your estate.
- No negative equity guarantee – ensures you never owe more than your home’s value.
These features are standard for plans approved by the Equity Release Council, providing added security for homeowners.
Why Is Equity Release Becoming Popular?
Recent data shows strong growth in the UK equity release market:
- In Q3 2025, £639 million of housing equity was accessed, a 4% increase year-on-year.
- Drawdown lifetime mortgages account for 49% of new plans, reflecting demand for flexibility.
- The average initial drawdown in Q3 2025 was £83,906, up 20% year-on-year.
These figures highlight that equity release is no longer a niche product – it’s a mainstream financial planning tool for later life.
Benefits of Equity Release
- Stay in Your Home
You don’t need to downsize or relocate. Equity release lets you remain in your property for life or until you move into long-term care. - Flexible Access to Funds
Modern plans allow phased withdrawals, helping you manage borrowing costs and interest roll-up. - Protected Features
With safeguards like the no negative equity guarantee, you can release funds confidently.
Important Considerations
Equity release is a regulated product, and advice is essential. Here are key points to keep in mind:
- Impact on Inheritance
Releasing equity reduces the value of your estate. - Interest Accumulation
Lifetime mortgages accrue compound interest over time. - Benefits Eligibility
Large withdrawals may affect means-tested benefits, now or in the future.
Always seek advice from a qualified, regulated adviser before proceeding.
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.
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.
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 our advice fee of £1,695 be payable. Other lender and solicitor fees may apply.
Frequently Asked Questions
Is Equity Release Safe?
Yes, when you choose a plan approved by the Equity Release Council. These include guarantees such as no-negative-equity and the right to remain in your home for life.
Can I Move House Later?
Many plans allow you to transfer your lifetime mortgage to a new property, subject to lender approval.
Will It Affect My Family?
Equity release reduces the value of your estate, so it’s important to discuss plans with loved ones and consider inheritance protection features.
You can read more frequently asked questions here, or download our free guide to equity release below.
How much can I release?
Find out how much you might be able to release by completing our free online calculator.