Martin Lewis on Equity Release and Lifetime Mortgages: 2024 Review

Do You Want to Unlock Capital With Equity Release and Want to Know What Martin Lewis Thinks? Discover the Fees, Interest Rates and Martin Lewis’ Top Equity Release Tips. Read On…
  • Last Updated: 12 Feb 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui

Key Takeaways

  • Martin Lewis highlights that equity release can provide a valuable source of income for homeowners over 55, but advises careful consideration due to the potential long-term financial implications.
  • While he doesn't universally recommend equity release, he suggests it can be suitable for some, depending on personal circumstances and need for cash influx.
  • His tips for equity release stress the importance of seeking independent financial advice, considering the impact on inheritance and understanding the long-term financial implications.
  • He has indeed commented on the risks of equity release, warning that it can erode the value of your estate and potentially affect entitlements to means-tested state benefits.
  • On the subject of equity release interest rates, he urges individuals to shop around for the best deal and to fully understand the impact of compounded interest over a long period.

If you have focused on retirement planning, you have probably wondered about Martin Lewis’ opinion on equity release

This award-winning UK broadcaster is not just known for his top-notch journalism; he is also the brain behind MoneySavingExpert, a popular site for information on all things money related. 

In This Article, You Will Discover:

    We have conducted thorough research on what this expert has to say about equity release and have put it all together in one place for your convenience.

    For his view on equity release; read on:

    NOTEEvery Investor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of Every Investor only and may not reflect the views or opinions of Martin Lewis. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Martin Lewis.

    What Is Martin Lewis' Opinion on Equity Release?

    According to MoneySavingExpert, Lewis thinks that equity release can be a good but expensive way to access money to help you live a better retirement.6 

    He acknowledges that equity release can be a plausible option for older individuals who are asset-rich, but cash-poor.  

    Lifetime mortgages and home reversion plans can affect the inheritance you leave behind to your loved ones. 

    Therefore: 

    He emphasises the importance of seeking professional equity release advice before releasing equity from your property. 

    Despite this, he advises people to be a little selfish and use the money to live a comfortable retirement rather than stress about the financial impact it may have on their inheritance.

    Learn about the equity release pros and cons in the United Kingdom, and make an informed decision about your financial future.

    Who Is Martin Lewis?

    He is an award-winning financial journalist, broadcaster, and newspaper columnist. 

    As the founder of the well-known website MoneySavingExpert, many people also think of him as a consumer champion.1

    MoneySavingExpert.com provides advice and tips on personal finance matters.

    Martin is highly regarded for his expertise in money-saving techniques, consumer rights, and financial education. 

    The Guardian referred to him as ‘the most trusted man in the UK in 2019.2

    Born in Manchester in 1972, Lewis set up the MoneySavingExpert website in his living room for £80.3

    Martin sold the website to MoneySupermarket.com in September 2012 for £87mln.4

    In 2019, The Guardian reported that MoneySupermarket.com was included in the top 100 sites in the UK and, at the time, had over 16mln visitors every month.5 

    Alongside his website, he has his own TV show, The Martin Lewis Money Show

    Every week, he gives money-saving tips on This Morning and Good Morning Britain. 

    What Is Equity Release?

    Equity release is a financial opportunity for those over 55 to draw value from their homes, converting it into cash, without the need to sell the property.

    This offers a means to financially leverage your home by releasing money from property.

    The unique aspect of this scheme is its repayment method: the loan, along with accrued interest, is paid off from the sale of the property, typically when the homeowner dies or enters long-term care.

    Does Martin Believe Downsizing Is Better Than Equity Release?

    It appears that Martin does think that downsizing is a better option to equity release and advises retirees to explore this option before committing to a lifetime mortgage or a home reversion plan. 

    Downsizing to a smaller home could potentially generate the cash you need to live a comfortable retirement.

    Not only could the sale of your home earn you some cash, but your ongoing living expenses could be reduced by moving to a smaller, more manageable home.  

    He encourages those that are considering downsizing to do so sooner rather than later.  

    Here is why:

    He often encounters people who put off moving to a smaller house because they feel they are too young until eventually it is too late and they are simply too old to handle the stresses of moving. 

    If, however, the cost of downsizing is prohibitive due to estate agent fees and relocation costs, then equity release could be the next best option.

    What Are His Top Equity Release Insights?

    Top tips he recommends for equity release include only borrowing what you need, using Equity Release Council members, getting professional advice, and being aware of the effect on your benefits.

    What else he has to say about these tips: 

    Martin Lewis Advice: Only Borrow What You Need in Equity Release

    Only borrowing the amount you require immediately, and waiting as long as you can before borrowing any money at all, is his first tip.

    The longer the loan term, the more you will have to pay back due to the compound interest that accrues every month. 

    For example

    Rather than taking a lump sum of £50,000 to spend over ten years, take out smaller amounts of £5,000 every year for ten years. 

    Interest is added as a percentage of the principal loan; therefore, the interest charged on a £5,000 loan is much less than that charged on a £50,000 loan. 

    Borrowing only what you need can help minimise interest costs and potential negative impacts on inheritance.

    * These figures are used for illustration purposes only. 

    Martin Lewis Recommends Choosing Equity Release Council Members

    Use Equity Release Council (ERC) members for all of your equity release needs, Martin Lewis advises.7

    Members are bound by the ERC rules and are obligated to provide a No Negative Equity Guarantee for all of their plans. 

    This guarantee means that you, or your estate, will never owe more than what your property is worth, regardless of the interest that has compounded over the term of your loan.

    Martin Lewis Suggests Getting Professional Equity Release Advice

    Get professional equity release advice from an independent financial advisor or mortgage broker before making any decisions. 

    An ERC member who specialises in the whole equity release market will be able to provide you with unbiased and honest advice on the best product for your needs.

    Professional equity release advisors can assess your individual circumstances, explain the options available to you, and guide you through the whole equity release process.

    Martin Lewis Warns of the Impact of Equity Release on Benefits

    Be aware of any impact on benefits releasing cash from your home could have. 

    A sudden influx of a cash lump sum into your bank account could disqualify you from receiving means-tested benefits.8 

    Your equity release advisor will determine the best way forward in this regard.

    Common Questions on Martin Lewis and Equity Release

    What Does Martin Lewis Say About Equity Release?

    Does Martin Lewis Recommend Equity Release?

    What Are Martin Lewis's Essential Tips for Choosing Equity Release?

    Has Martin Lewis Commented on the Risks of Equity Release?

    What Are Martin Lewis's Thoughts on Equity Release Interest Rates?

    Is Martin Lewis a Member of the Equity Release Council?

    Does Martin Lewis Have Any Job Openings Available?

    Does Martin Lewis Offer Any Advice on Choosing an Equity Release Advisor?

    How Often Does Martin Lewis Update His Advice on Equity Release?

    What Does Martin Lewis Say About the Role of the Equity Release Council?

    Does Martin Lewis Agree With Equity Release?

    Final Thoughts on Martin Lewis and Equity Release

    As a respected financial journalist and consumer champion, Lewis acknowledges the potential benefits of equity release. 

    He does, however, emphasise the importance of careful consideration, professional advice, and exploring alternatives like downsizing.  

    When it comes to equity release, Martin Lewis is a firm believer in prioritising your own standard of living instead of worrying too much about what you will be leaving behind for your loved ones.

    The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.

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