If you’re a homeowner aged 55 or over, you may have heard about equity release as a way to unlock some of the money tied up in your home. For many people, it offers a chance to enjoy retirement more comfortably, help family financially, or clear existing debts without needing to sell or move.
But equity release isn’t for everyone and understanding whether it’s the right option for you starts with getting clear, unbiased advice.
At HFA Later Life, we help people make informed decisions about lifetime mortgages and equity release. Here’s what you need to know if you’re asking, “Is equity release right for me?”
What Is Equity Release?
Equity release allows you to access tax-free cash from the value of your home, without needing to move out. The most common form is a lifetime mortgage, which is a loan secured against your property. You retain full ownership of your home and can continue living in it for life.
The loan, plus interest, is usually repaid from the sale of your property when you pass away or move into long-term care.
Reasons People Choose Equity Release
Equity release can offer flexibility and financial freedom in later life. Common reasons people choose it include:
• Supplementing pension income
• Paying off an existing mortgage or debts
• Helping children or grandchildren with a deposit*
*If you give money away the recipient may have to pay inheritance tax in the future
• Making home improvements or adapting the home
• Covering the cost of care or private medical expenses
Everyone’s reason is different and it’s important to align the product with your goals.
Is Equity Release the Right Choice?
Equity release may be suitable if:
• You are 55 or over and own your home (with a mortgage to be cleared, or without a mortgage)
• You want to remain in your home
• You’re looking to release a lump sum or draw down funds over time
• You’re comfortable with reducing the value of your estate
However, it may not be right if:
• You want to maximise inheritance for your family
• You are likely to move home soon
• You rely on means-tested benefits that may be affected
• If you haven’t yet explored other borrowing options or downsizing
This is why regulated, personalised advice is essential. At HFA Later Life, we explore all your options — not just equity release and only recommend it if it’s truly in your best interest.
What About Interest and Inheritance?
With most lifetime mortgages, interest is rolled up, meaning it’s added to the loan rather than paid monthly. This can cause the amount owed to grow quickly over time.
However, many plans now come with flexible features, such as:
• Inheritance protection – allowing you to ring-fence a portion of your property’s value
• Fixed interest rates for life – offering long-term certainty
You remain in full control and your adviser will help you understand all the costs involved.
Let’s Talk About What’s Right for You
Equity release is a big decision, and it’s not one-size-fits-all. The right plan or the right alternative depends entirely on your needs, your goals, and your future plans.
At HFA Later Life, we’re here to guide you through the process with clarity, compassion, and professionalism. No jargon, no pressure – just tailored advice you can trust.
Visit www.HFALaterLife.co.uk to learn more and book a free consultation with one of our qualified later life mortgage advisers.
Important Notice:
Equity release includes Lifetime Mortgages and Home Reversion Schemes. We can advise and arrange Lifetime Mortgages and will refer to an approved specialist for Home Reversion schemes.
This is a Lifetime Mortgage. These are only applicable to those 55 and over, and it could affect eligibility to state means-tested benefits and the inheritance you may leave. To understand the features and risks, ask for a personalised illustration
There may be a fee for advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £1500.
