Equity Release FAQs 2025: Your Complete Guide & Free Calculator

Equity release allows homeowners aged 55+ to access some of the value in their home without having to sell or move. The most common type is a lifetime mortgage, where you borrow against your home and the loan is repaid when you pass away or move into long-term care.

You must be aged 55 or over and own your home (usually worth at least £70,000). The property must be your main residence and in reasonable condition. Any existing mortgage is typically repaid as part of the process.

The amount depends on your age, property value, and health. Most lenders allow between 20% and 55% of your home's value to be released. Your adviser can calculate this accurately for you during your free consultation.

Yes — with a lifetime mortgage (the most popular type), you retain full ownership of your home. The lender places a charge against the property, similar to a standard mortgage. Only home reversion plans involve selling a share of your property.

Yes, as long as your new property meets the lender’s criteria. Most plans from Equity Release Council members come with a “portability” feature that lets you move your plan to a new home.

Equity release will reduce the value of your estate, but many plans offer an optional inheritance protection feature so you can safeguard a percentage of your home's future value for beneficiaries.

The main risks include a reduced inheritance, interest roll-up increasing the amount owed over time, potential impact on means-tested benefits, and possible early repayment charges. However, all plans approved by the Equity Release Council include a no negative equity guarantee, which means you’ll never owe more than your home’s value.

At Need Financial Planning, we’re completely transparent about these risks. Our advice is independent, and we’ll only ever recommend equity release if it’s genuinely suitable for you. We’ll also discuss all other available options so you can make a fully informed choice with confidence.

Typical costs include advice fees, a property valuation, legal fees, and lender arrangement charges. These are always discussed upfront before you decide to proceed. There are no hidden costs or penalties for getting advice.

Yes — some plans allow voluntary or partial repayments without penalty. Others may charge an early repayment fee. Your adviser will explain all options so you can stay flexible if your circumstances change.