NOTE: EveryInvestor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of EveryInvestor 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.

In 2024, Martin Lewis stresses the importance of thoroughly evaluating equity release options, emphasising understanding the long-term costs and potential impacts on inheritance, and urging homeowners to grasp the full extent of this financial commitment.

Lewis also highlights downsizing as a safer financial option, recommending personalised advice to guide consumers away from potential pitfalls associated with equity release.

Equity release decisions carry significant weight, and Lewis provides a critical analysis, balancing the benefits of financial freedom against hidden risks.

Discover why his insights are crucial for anyone considering this option, as his expertise helps pave the way to a secure financial future.

For his view on equity release, read on:

Who is Martin Lewis?

Martin Lewis is an award-winning financial journalist, broadcaster, and newspaper columnist; he’s also the founder of the well-known website, MoneySavingExpert, a well-known website that offers advice and tips on personal finance matters.

Recognised 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 2019.¹

Born in Manchester in 1972, Lewis set up the MoneySavingExpert website in his living room for £80.² 

Martin sold the website to MoneySupermarket.com in September 2012 for £87mln.³

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.⁴ 

What Is Martin Lewis’ Opinion on Equity Release and Lifetime Mortgages?

Martin Lewis’ opinion on equity release and lifetime mortgages suggests caution; he emphasises that these are significant decisions with long-term financial impacts and potential effects on inheritance.

While they can provide immediate financial relief, the associated high costs must be considered.

Lewis advocates downsizing as a more cost-effective alternative to equity release, presenting it as the most straightforward strategy to access home equity.

He acknowledges that, although equity release can be a viable option for those who are asset-rich but cash-poor, it can be an expensive way to access funds for a better retirement.⁵

Therefore: 

Lifetime mortgages and home reversion plans can affect the inheritance left for loved ones; therefore, Lewis stresses the importance of seeking professional equity release advice before making any decisions.

Despite the potential impact on inheritance, he advises people to prioritise their comfort and well-being in retirement.

Understanding the equity release pros and cons to make an informed decision about your financial future.

What is Equity Release?

Equity release is a financial opportunity that allows individuals to draw value from their homes, converting it into cash, without the need to sell the property. 

It typically requires homeowners to be at least 55 years old to be eligible for such financial products, offering a means to financially leverage your home by releasing money from it.

By releasing money from your home, you can access funds while continuing to live on the property; however, it’s essential to consider the associated costs, including solicitor fees, to ensure the process is legally sound.

Individuals often use an equity release calculator in the UK to estimate the funds they can unlock from their property.

What are the Legal Implications of Equity Release?

The legal implications of equity release include your property ownership rights and inheritance plans being affected.

It’s crucial to fully understand these legal implications before proceeding, so seeking professional legal advice is highly recommended to ensure you are aware of all ramifications.

Before making a decision, it’s essential to consider the different equity release options available in the market.

What Are Martin Lewis’ Guides to Equity Release and Lifetime Mortgages?

Martin Lewis’ guides to equity release and lifetime mortgages emphasise informed decision-making, exploring all alternatives, and understanding the long-term impact on finances and inheritance before proceeding.

What is the Martin Lewis Guide to Equity Release?

The Martin Lewis Guide to Equity Release is a comprehensive resource offering clear, expert advice on equity release.

It covers various topics, including the pros and cons, cost implications, and alternative options, and by simplifying complex financial jargon, the guide ensures readers fully understand how to access the cash tied up in their property.

What makes this guide stand out is Martin Lewis’ esteemed reputation as a financial expert, and his objective and trustworthy insights equip homeowners with the knowledge needed to make informed decisions.

Recognizing that equity release is a significant choice, this guide serves as an invaluable tool in the decision-making process.

What Are His Top Equity Release Advice and Insights?

His top equity release advice and insights include only borrowing what you need, using Equity Release Council members, getting professional advice, and being aware of the effect on your benefits.

Here’s what else he has to say about these tips: 

He Suggests Only Borrowing What You Need in Equity Release

Martin Lewis suggests only borrowing the amount you need in equity release and waiting as long as you can before borrowing any money at all; this is his first and most important 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. 

He Recommends Choosing Equity Release Council Members

Martin Lewis recommends choosing Equity Release Council (ERC) members for all of your equity release needs.⁶

ERC members are required to provide a no-negative equity guarantee for all their plans, ensuring that you or your estate will never owe more than the value of your property, regardless of the compounded interest over the loan term.

This guarantee adheres to ERC rules, offering added protection and peace of mind.

He Suggests Getting Professional Equity Release Advice

Martin Lewis suggests getting professional equity release advice from an independent financial adviser or mortgage broker before making any decisions. 

An ERC member specialising in the equity release market can offer unbiased and honest advice on the best product for your needs.

Professional equity release advisers can assess your individual circumstances, explain your options, and guide you through the entire equity release process, ensuring you make informed decisions that align with your financial goals.

He Warns of the Impact of Equity Release on Benefits

Martin Lewis warns of the impact of equity release on the 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.⁷  

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

Learn More About the Safety of Equity Release Here

How Does Equity Release Impact Inheritance Planning?

Equity release impacts inheritance planning by reducing the value of your estate, directly affecting the amount you can leave as an inheritance.

The loan and its accumulating interest diminish the assets available for your beneficiaries over time.

When considering equity release, it’s crucial to understand how this decision will decrease the legacy you plan to leave behind.

While it provides immediate financial benefits, the long-term consequence is a smaller inheritance for your heirs, potentially altering your intended estate distribution.

What Are the Alternatives to Equity Release and Public Opinions on It?

The alternatives to equity release include downsizing, using savings, or taking out a personal loan, with public opinions varying from viewing it as a useful financial tool to concerns over its impact on inheritance and long-term costs.

Does Martin Lewis Believe Downsizing Is Better Than Equity Release?

Yes, Martin does believe that downsizing is better than 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 can generate the cash needed for a comfortable retirement. The sale of your home can provide you with funds, and moving to a smaller, more manageable property can reduce ongoing living expenses.

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

Here is why:

He often encounters people who delay moving because they feel too young, only to find that they are eventually too old to handle the stresses of moving; however, if the cost of downsizing is prohibitive due to estate agent fees and relocation costs, then equity release could be the next best option.

What Alternative Retirement Financing Options Exist?

Alternative retirement financing options that exist include downsizing, personal savings, annuities, or personal loans, offering diverse ways to secure financial stability without tapping into home equity.

Innovative retirement financing methods such as peer-to-peer lending, crowdfunding, and cryptocurrency investments also provide alternative avenues for generating income or capital growth.

These modern approaches appeal to those seeking non-traditional retirement strategies, offering new opportunities to enhance financial security in retirement.

Understanding these options requires a keen insight into the current financial landscape and emerging trends.

Customer Opinions on Martin Lewis and Equity Release

Customer opinions on Martin Lewis and equity release often reflect an appreciation for his pragmatic advice, emphasising thorough research and cautious consideration before engaging with equity release schemes.

What equity release customers think can be seen in their responses on consumer review websites such as TrustPilot, Review Centre, and SmartMoneyPeople.

Some reviews:

• MoneySavingExpert Society Reviews on UK.TrustPilot.com
• Review of MoneySavingExpert on ReviewCentre.com
• MoneySavingExpert Reviewed on SmartMoneyPeople.com

Complaints or Comments

For any complaints or comments on MoneySavingExpert, you can email furtherhelp@moneysavingexpert.com.

What Consumer Protection Measures Govern Equity Release?

Consumer protection measures governing equity release include Financial Conduct Authority regulations, compulsory independent legal advice, and the no-negative-equity guarantee.

These protections include clear advice requirements, transparent product details, and the right to reside in the property for life.

Lenders must be members of the Equity Release Council, which imposes additional consumer safeguards; one of these key safeguards is the no-negative equity guarantee, which ensures borrowers or their estates will never owe more than the value of their home.

The Equity Release Council also mandates that consumers receive independent legal advice before finalising an equity release plan, ensuring all parties fully understand the terms and implications.

This ensures that all parties fully understand the terms and implications, providing a layer of security and promoting informed decision-making in the equity release process.

How We Analysed Martin Lewis’ Views on Equity Release

We analysed Martin Lewis’ view on equity release by gathering information from various reputable UK websites. 

Our sources included the official MoneySavingExpert website, trusted news outlets, and well-established financial publications.

NOTE: This article is an unaffiliated, independent, third-party, review of Martin Lewis or MoneySavingExpert.com.

Contact Information for Martin Lewis

The contact information for Martin Lewis includes visiting the MoneySavingExpert.com website for various contact options, including media inquiries and personal finance advice, reflecting his commitment to consumer financial education.

Contact Number

The contact number is 0800 030 4044 on the This Morning Show. 

You can also send an email to: thismorning@itv.com.

Common Questions

Final Thoughts

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.

A knowledgeable equity release financial advisor can guide you through the complex process of unlocking the value in your home.

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.