Is Equity Release a Good Idea?

What Are the Pros, Cons & Pitfalls of Equity Release in 2022 & Is It Safe?
Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui
The Million Pound Question: Is Equity Release a Good Thing? Discover What the Experts Have to Say & if You Can Unlock the Retirement of Your Dreams.

Is Equity Release a Good Idea?

Equity release is the latest topic of conversation, but you might wonder if it’s a good idea right now?

We can confirm that it might just be the answer you’ve been looking for as it allows you to access the cash tied up in your home while still living there.

Thanks to our most recent research, we can help you decide if equity release is a good idea in 2022.

In this article, you’ll learn:

  • What equity release is.
  • The types of equity release plans available.
  • Is equity release a good thing? 

Our researchers have analysed over 690 equity release programs to establish their benefits and drawbacks and establish why 1 retiree takes out an equity release product every 12 minutes in the UK.

Find out now!

Before You Start Reading….

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What’s Equity Release?

Equity release is a range of financial solutions developed for seniors.

These financial products allow homeowners over the age of 55 to access the money tied up in their homes while still living in them.

Types of Equity Release Plans? 

There are 2 main types of equity release plans: a lifetime mortgage or a home reversion plan.

Here’s more about these.

Lifetime Mortgage

Lifetime mortgages are a type of equity release scheme that allows you to access some of the wealth in your home.

Home Reversion

With a home reversion plan, you raise funds by selling all or part of your house while living in it rent-free until you pass away or go into permanent care.

Is Equity Release A Good Thing?

Equity release can be a good thing for homeowners over 55 who want to access extra funds to use and enjoy during their retirement. 

You can use equity release to pay for home upgrades, home care bills1, an early inheritance for your children, or pay off other debt you may have.

Equity release is not a good thing for everyone, but you can consult your financial adviser to help you determine if it’s good for you.

When Is Equity Release a Good Idea?

Equity release is a good idea if you need extra money for a more comfortable retirement or to fund other retirement activities you may want to pursue.

If a financial adviser has told you that your income and other savings won’t get you through retirement, then it’s a good idea.

Is There a Downside to Equity Release?

There’s a downside to equity release, and it’s that the overall cost ends up being very high.

If you have a lifetime mortgage in place for an extended period, like 10 or 20 years, the interest that accrues can mean you could owe double what you initially borrowed.

It’ll significantly reduce the inheritance that you leave to your beneficiaries.

Your eligibility for means-tested state benefits could be negatively impacted.

Is Equity Release Right for Me?

Equity release can be right for you if you don’t have enough money to retire and be comfortable; nobody wants to struggle through their old age.

To decide if equity release is right for you, consult with your financial adviser2, who’ll tell you if it’s an option you should consider.

Common Questions

Is Equity Release Becoming More Popular?

Is Equity Release a Good or Bad Idea?

In Conclusion

Nothing is more distressing than worrying about money, especially in your golden years.

Taking advantage of equity release is one of the best ways to ensure that you’ll have enough cash during your retirement.

How Much Can You Release?

Use the FREE Calculator Below 👇


Equity Release Calculator

Value of Your Home?


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It’s VERY FAST, takes just 8 seconds

Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.